Restaurants, cafes, and other eating establishments are liable for sales tax on meals furnished to their employees as part of a compensation plan. The measure of tax is the value of food withdrawn and consumed by the employees. [State v. Morrison Cafeterias Consolidated, Inc., 487 So. 2d 898 (Ala. 1985)]

Author: Dan DeVaughn

Statutory Authority: Code of Ala. 1975, §§40-2A-7(a)(5), 40-23-1(a)(6), 40-23-1(a)(10), 40-23-31, 40-23-83.

History: Readopted through APA effective October 1, 1982. Amended: Filed February 26, 1987. §§40-23-1(a)(6), 40-23-1(a)(10). Amended: Filed February 3, 1998; effective March 10, 1998.