Alabama Amends Rule on Restaurant Purchases

Friday, February 6th, 2015

A table in a restaurant.

The Alabama Department of Revenue ("Department") has amended the rule for non-taxable restaurant purchases to conform with recent case law.

Effective March 5, 2015, the Department has amended Rule 810-6-1-.69 - Containers, Components of Containers, Labels, Pallets, and Shipping Supplies. Last June, the Alabama Court of Appeals ruled that critical elements of food and drink items sold by fast-food restaurants were nontaxable sales by wholesalers. Critical elements included straws, stirrers, napkins, moist towelettes, wood skewers, and plastic utensils that were sold as part of a sale of food or drink and were not reusable.

Effective March 5, 2015, the rule will state that items purchased by food and beverage servers are non-taxable if the items purchased are (1) later sold in connection with a sale of food or drink and (2) not reusable. For example, coffee stirrers and napkins that will be sold with cups of coffee are non-taxable when purchased by the restaurant.

About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at or call 866.578.8193.

Texas Releases Detailed Guidance on Exempt Organizations

Thursday, October 18th, 2018 -The Texas Comptroller has released a publication that provides detailed information on how sales and use tax a...

Telephone Answering Services Taxable in Arkansas

Tuesday, October 16th, 2018 -The Arkansas Department of Finance and Administration recently ruled that the service of answering calls on be...

Washington Provides Guidance on Lodging Tax for Online...

Friday, October 12th, 2018 -The Washington Department of Revenue released updated guidance that provides tax reporting information for bed...

Economic Nexus in West Virginia

Wednesday, October 10th, 2018 -The West Virginia State Tax Department announced that it will require remote sellers to begin collecting sales...

Idaho Provides Guidance on the Exemption for Medical...

Monday, October 8th, 2018 -The Idaho State Tax Commission recently released guidance that explains Idaho's sales and use tax laws for buy...

Arkansas Does Not Follow Federal Law on Foreign Income

Friday, October 5th, 2018 -The Arkansas Department of Taxation and Finance recently released an opinion that says the state does not conf...