Sales To Restaurant Employees

Effective October 1, 2009, a sales and use tax exemption is provided for sales of and the storage, use, or other consumption of candy, soft drinks, dietary supplements, and prepared foods, and disposable products that are transferred with such items, furnished for no consideration by a restaurant to the restaurant's employee during the employee's work hours. A restaurant's sales of such items are subject to tax. (Section 77.54(20r), Wis. Stats., as created effective October 1, 2009 by 2009 Wis. Act 2.)

Under prior law, certain food, food products, and beverages and disposable products that were transferred with such items were exempt from Wisconsin sales and use tax if the items were provided by a restaurant to the restaurant's employees during the employee's work hours, regardless of whether the restaurant sold the items to the employee or furnished the items to the employee for no consideration. (Section 77.54(20)(c)4m., Wis. Stats. (2007-08), repealed effective October 1, 2009 by 2009 Wis. Act 2.)

Last updated January 19, 2010