Sales of Food and Food Ingredients by Hospitals and Other Facilities

Sales of food and food ingredients, except soft drinks, by hospitals, sanatoriums, nursing homes, retirement homes, community-based residential facilities as defined in sec. 50.01(lg), Wis. Stats., and any facility certified or licensed under Chapter 48, Wis. Stats., are exempt. Also exempt are "mobile meals on wheels" sold to the elderly and handicapped. Note: This exemption does not apply to alcoholic beverages.

Facilities certified or licensed under Chapter 48, Wis. Stats., include licensed day care centers, child placement agencies, residential care centers, foster homes, treatment foster homes, group homes, and shelter care facilities. Note: The law change that became effective on May 6, 2010 expanded the exemption to include such sales made by all facilities certified or licensed under Chapter 48, Wis. Stats., rather than only day care centers.

From October 1, 2009 through May 5, 2010, food and food ingredients, except soft drinks, sold by hospitals, sanatoriums, nursing homes, retirement homes, community-based residential facilities, as defined in sec. 50.01(1g), Wis. Stats., and day care centers registered under Chapter 48, Wis. Stats., were exempt from Wisconsin sales and use taxes. These sales continue to be exempt under current law. Note: This exemption did not apply to alcoholic beverages.

Prior to October 1, 2009, the exemption applied to meals, food, food products, and beverages that were sold by a hospital, sanatorium, nursing homes, retirement home, community-based residential facility as defined in sec. 50.01(lg), Wis. Stats., or day care center licensed under Chapter 48, Wis. Stats., and served at a hospital, sanatorium, nursing home, retirement home, community-based residential facility, or day care center. Note: This exemption did not apply to soft drinks and alcoholic beverages.

Refer to sec. Tax 11.87, Wis. Adm. Code, "Prepared food, food and food ingredients, and soft drinks," for more information.

Page last updated January 14, 2011