1. (1) Sales of meals, snacks, drinks, and beverages, to passengers by railroads, airlines, steamships, and other transportation companies within this state are subject to sales tax, provided the meals, snacks, drinks, or beverages are served to the passengers while still in Alabama. Sections 40-23-1(a)(10) and 40-23-2(1), Code of Ala. 1975.
2. (2) Meals, snacks, drinks, and beverages, served in Alabama by a transportation company as a part of its transportation service are retail sales subject to sales tax when the transportation company includes in the ticket price an amount to cover the selling price of the meal, snack, drink, or beverage. The amount for the meal included in the selling price of the ticket is the measure of tax. (State v. Hertz Sky Center, Inc., 294 Ala. 336, 317 So. 2d 324 (1975) and State v. Delta Air Lines, 356 So. 2d 1205 (Ala. Civ. App. 1978)).

Author: Dan DeVaughn

Statutory Authority: Code of Ala. 1975, §§40-2A-7(a)(5), 40-23-1(a)(10), 40-23-31, 40-23-83.

History: Readopted through APA effective October 1, 1982. Amended: Filed June 25, 1998; effective July 30, 1998.