Restaurant employee meals

From the 2024 DOR Tax Exemption Study

82.08.9995; 82.12.9995 - Restaurant employee meals Description Meals provided to employees of restaurants without specific charge are exempt from sales and use taxes. Purpose To resolve a long-standing issue regarding the application of sales and use taxes and to make administration of the sales tax easier for restaurants and the department. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $4.690 $4.700 $4.720 $4.740 Local Taxes $2.110 $2.110 $2.120 $2.130 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.550 $0.610 $0.620 Local Taxes $0.000 $0.250 $0.280 $0.280 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 r