Restaurant employee meals

From the 2024 DOR Tax Exemption Study

82.04.750 - Restaurant employee meals Description Meals provided to employees of restaurants without specific charge to the employees are exempt from B&O tax. Purpose To allow restaurant owners to provide free meals to their employees without incurring B&O tax. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.340 $0.340 $0.342 $0.343 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.041 $0.044 $0.045 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the employment growth rate for the service-providing labor force reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - A restaurant employee works an estimated 241 days a year. - Of the estimated number of employee meals provided to restaurant employees, 29% are provided free of charge. - An estimated 90% of restaurant employees will receive a free employer- provided meal. - The average cos