Senior living community meals

From the 2024 DOR Tax Exemption Study

Home Forms & Publications Publications By Subject Special Notices Senior Living Communities – Tenant Meals – Sales And Use Tax Exemption Print Senior living communities – tenant meals – sales and use tax exemption Issue Date January 18, 2024 Intended audience: Senior living communities. Beginning July 23, 2023, the value of meals furnished to independent living tenants of senior living communities as part of their rental agreement is not subject to sales or use tax when there is no separate charge for the meals. However, senior living communities must still pay B&O tax on the fair selling price of such food, drink, and meals under the service and other activities B&O tax classification or under the classification which otherwise applies to that community. Note 1: Senior living communities that separately state their charge for food, drinks, or meals remain subject to B&O tax under the Retailing classification and must collect retail sales tax on such separately stated charges. Note 2: This change does not affect the taxability of meals provided to residents when the facility provides healthcare services, such as nursing homes, hospitals, and assisted living facilities. Background P