1. A. The following definitions apply to the sales and use tax exemption authorized under Section 59-12-104 for inpatient meals provided at a medical facility or nursing facility.

   1. 1. "Medical facility" means a facility:

      a) described in SIC codes 8062 through 8069 of the 1987 Standard Industrial Classification Manual of the federal Executive Office of the President, Office of Management and Budget; and

      b) licensed under Section 26-21-8.

   2. 2. "Nursing facility" means a facility:

      a) described in SIC codes 8051 through 8059 of the 1987 Standard Industrial Classification Manual of the federal Executive Office of the President, Office of Management and Budget; and

      b) licensed under Section 26-21-8.

2. B. The following definition applies to the sales and use tax exemption authorized under Section 59-12-104 for sales of meals served by an institution of higher education.

   1. 1. "Student meal plan" means an arrangement:

      a) between an institution of higher education and a student;

      b) available only to a student;

      c) whose duration is the entire term, semester, or similar unit of study;

      d) paid in advance of the term, semester, or similar unit of study; and

      e) providing for specified meals at eating facilities of the institution of higher education.

3. C. Except as provided in Section 59-12-104, sales and use tax is imposed upon the amount paid for meals furnished by any restaurant, cafeteria, eating house, hotel, drug store, diner, private club, boarding house, or other place, regardless of whether meals are regularly served to the public.
4. D. Ingredients that become a component part of meals subject to tax are construed to be purchased for resale, and as such the purchase of those ingredients is exempt from sales and use tax.
5. E. Where a meal is given away on a complementary basis, the provider of the meal is considered to be the consumer of the items used in preparing the meal.

6. F. Meals served by religious or charitable institutions and institutions of higher education are not available to the general public if:

   1. 1. access to the restaurant, cafeteria, or other facility is restricted to:

      1. (1) employees of the institution;
      2. (2) volunteers of the institution;
      3. (3) guests of the institution; and

      4. (4) other individuals that constitute a limited class of people; or

         b) in the case of an institution of higher education:

      5. (1) students of the institution;
      6. (2) employees of the institution;
      7. (3) guests of the institution; and
      8. (4) other individuals that constitute a limited class of people; and

      a) in the case of a religious or charitable institution:

   2. 2. the restricted access is enforced.
7. G. Sales of meals at occasional church or charity bazaars or fund raisers, and other similar functions are considered isolated and occasional sales and therefore exempt from sales and use tax.

KEY: charities, tax exemptions, religious activities, sales tax

Date of Last Change: January 1, 2026

Notice of Continuation: November 9, 2021

Authorizing, and Implemented or Interpreted Law: 9-2-1702; 9-2-1703; 10-1-303; 10-1-306; 10-1-307; 10-1-405; 19-6-808; 26-32a-101 through 26-32a-113; 59-1-210; 59-12; 59-12-102; 59-12-103; 59-12-104; 59-12-105; 59-12-106; 59-12-107; 59-12-108; 59-12-118; 59-12-301; 59-12-352; 59-12-353