STATE 
DEPARTMENT OF REVENUE SERVICES

OFFICE OF THE COMMISSIONER

 

September 19, 2019

Honorable Ned Lamont
Governor

State of Connecticut

State Capitol

210 Capitol Avenue
Hartford, Connecticut 06106

Dear Governor Lamont:

As requested, attached please find a copy of Department of Revenue Services (DRS) Announcement
2019(10), Information about Sales and Use Tax Rate Increase on Meals and Revocation of Policy
Statement 2019(5), Sales and Use Tax on Meals, which will be posted to the DRS website.
Announcements, such as this one, are used by the DRS to alert taxpayers to new developments,
including new administrative positions, policies, or practices, as it is within theCommissioner?s
discretion to review and revise the agency?s administrative positions when necessary.

The General Assembly enacted legislation to increase the sales and use tax rate on meals and certain
beverages effective October 1, 2019 (the ?201 9 legislation?). 2019 Conn. Pub. Acts 117, 
323-324. Subsequently, the DRS issued Policy Statement 2019(5), Sales and Use Taxes on Meals,
to provide guidance to taxpayers as to how sales and use taxes apply to sales of food items, including
meals.

Since the release of Policy Statement 2019(5), on September 6, 2019, the DRS team and I have
personally spoken with your office, the Office of Policy and Management, Democratic and
Republican legislators, nonpartisan legislative staff, and many others about the ?meals tax? provision
in the budget.

At your request, the DRS has reevaluated its initial interpretation of the 2019 legislation. The DRS
has determined that there is an alternative, and defensible, interpretation that more closely aligns with
the language of the statute and the clear intent of the Legislature. Accordingly, the DRS hereby
rescinds Policy Statement 2019(5) and, correspondingly, has issued Announcement 2019(10).

As set forth above, the 2019 legislation increased the sales and use tax rate on meals and beverages
effective October 1, 2019. See 2019 Conn. Pub. Acts 117, 323?324. Section 3231 provides as

follows:

With respect to the sale of meals, as defined in subdivision (13) of section 12-412, sold by an
eating establishment, caterer or grocery store; and spirituous, malt or vinous liquors, soft
drinks, sodas or beverages such as are ordinarily dispensed at bars and soda fountains, or in

 

1 Section 323 amends the sales tax. Section 324 amends the use tax. As the language in each section is virtually
identical, the analysis of section 323 applies equaliy to section 324.

axes Ele 
(4W Your CtrOn'Ca?y

Affirmative Action I Equal Opportunity Employer

450 COLUMBUS BOULEVARD, SUITE 1 HARTFORD, CONNECTICUT 06103-1837

 

 

 

connection therewith; in addition to the tax imposed under subparagraph (A) of this
subdivision, at the rate of one per cent.

Prior to the enactment of the 2019 legislation, there was a speci?c set of rules that were used to
determine the taxation of food items sold at grocery stores. The last iteration of these longstanding
rules was set forth in Policy Statement 2002(2), Sales and Use Taxes on Meals, also attached, which,
in pertinent part, provided

Supermarkets are not generally sellers of meals. The rules describing the difference between
bulk sales of food and sales of meals listed in this Policy Statement do not apply to food items
sold in supermarkets. The items listed above as taxable meals are not taxable when sold in
supermarkets except as noted below.

The following are sales of meals by a supermarket and are subject to sales and use taxes:

- Catering services performed by a supermarket (see Catering Services, below);

- Sales of sandwiches, grinders, coffee, or tea prepared in a supermarket at a
delicatessen counter or elsewhere for takeout. The sales of these items sold anywhere
in a supermarket are taxable;

- Sales of meals in areas of a supermarket where food is intended to be consumed in
the supermarket, such as at snack bars or food courts. The meals sold in these
designated eating areas are taxable even if taken off the premises by the purchaser.

The DRS initially interpreted the 2019 legislation to add certain circumstances where the tax would be
applied. However, when the entire statute is read as a whole, it becomes clearer that the General
Assembly did not expand the applicability of the tax, but simply increased the existing tax.

I am proud to lead a dedicated team of DRS professionals who, every day, balance their statutory
responsibilities with a willingness to consider other perspectives, address concerns on practical
application of new tax laws, and reflect on their work. Ultimately, agency guidance is intended to
provide clarity and alleviate confusion. I am con?dent Announcement 2019(10) accomplishes this
goal.

If additional guidance is needed, the DRS team stands ready to work with the Administration in serving
the needs of the public.

Sincerely,

 

Department of Revenue Services

DEPARTMENT OF REVENUE SERVICES

 

STATE OF CONNECTICUT

AN 2019(10)

DEPARTMENT OF REVENUE SERVICES
450 Columbus Blvd Ste 1
Hartford CT 06103-1837

ANNOUNCEMENT

Information about Sales and Use Tax Rate Increase on Meals and
Revocation of Policy Statement 2019(5), Sales and Use Tax on
Meals
Revocation of Policy Statement 2019(5): This
Announcement revokes Policy Statement 2019(5),
Sales and Use Tax on Meals, which may no longer be
relied upon as of the effective date of its revocation.
Sales and Use Tax Rate Increase: As of
October 1, 2019, sales of meals and certain drinks
that are currently subject to tax at a rate of 6.35% will
become subject to an additional 1% rate of tax for a
total effective tax rate of 7.35%. For additional
information about taxable meals, please refer to
Policy Statement 2002(2), Sales and Use Tax on
Meals.
Effective Date: Effective upon issuance.
Statutory Authority: 2019 Conn. Pub. Acts 117, §
323
Effect on Other Documents: Policy Statement
2019(5), Sales and Use Tax on Meals, is revoked and
may not be relied upon on or after the date of
issuance of this Announcement.

Effect of This Document: Announcements alert
taxpayers to new developments (other than newly
enacted or amended Connecticut or federal laws or
newly released judicial decisions), including new
administrative positions, policies, or practices.
AN 2019(10)
Sales and use taxes
Food and beverages
Meals
Issued: 9/19/2019

For Further Information: Call DRS during
business hours, Monday through Friday:
 800-382-9463 (Connecticut calls outside the
Greater Hartford calling area only); or
 860-297-5962 (from anywhere).
TTY, TDD, and Text Telephone users only may
transmit inquiries anytime by calling 860-297-4911.
Forms and Publications: Visit the DRS website at
portal.ct.gov/DRS to download and print Connecticut
tax forms and publications.
Paperless Filing/Payment Methods (fast,
easy, free, and confidential): Business and
individual taxpayers can use the Taxpayer Service
Center (TSC) at portal.ct.gov/TSC to file a variety of
tax returns, update account information, and make
payments online.
File Electronically: You can choose first-time filer
information and filing assistance or log directly into
the TSC to file returns and pay taxes.
Pay Electronically: You can pay taxes for tax
returns that cannot be filed through the TSC. Log in
and select the Make Payment Only option. Choose a
payment date up to the due date of the tax and mail a
paper return to complete the filing process.

 STATE OF CONNECTICUT

DEPARTMENT OF REVENUE SERVICES
25 Sigourney Street
Hartford CT 06106-5032

PS 2002(2)
POLICY STATEMENT

Sales and Use Taxes on Meals
Purpose: This Policy Statement describes the
Department of Revenue Services’ (DRS) current policy
on the taxability of meals and food products for human
consumption, contains a definition and description of
bulk sales of food, and describes which:
• Food sales and products constitute taxable meals;
• Retail establishments qualify as establishments at
which meals are sold; and
• Retail establishments qualify as supermarkets.
(Special rules are provided for sales by
supermarkets.)
The Policy Statement also provides information about
food products sold through coin-operated vending
machines, gives examples of taxable meals sold in
supermarkets, discusses resale issues for sellers of
meals, and discusses the taxability of charges for room
rentals, such as meeting rooms or banquet rooms,
where meals, light snacks, and beverages are furnished.

Statutory and Regulatory Authority: Conn. Gen.
Stat. §12-407(2)(e); Conn. Gen. Stat. §12-412(5), (9),
(13), (14), (26), (27), (35), (46), (57), and (94); Conn.
Gen. Stat. §12-412e; Conn. Agencies Regs. §12-426-29.

Effective Date: Effective when issued except where
otherwise noted.

Background: Conn. Gen. Stat. §12-407(2)(a)
includes in the definition of sale and selling subject to
sales and use taxes, “[a]ny transfer of title ... of
tangible personal property for a consideration,”
including food items. Conn. Gen. Stat. §12-407(2)(e)
also includes in the definition of sale and selling “the
furnishing, preparing, or serving for a consideration of
food, meals or drinks.” Conn. Gen. Stat. §12-412(13)
exempts from sales and use taxes the sale of food
products for human consumption. That subsection
defines food products and also specifies that the
exemption does not apply to “meals sold by an eating

establishment or caterer.” The subsection further
defines meal and eating establishment.

Taxability of Meals: The sale of all meals,
regardless of cost, is subject to sales and use taxes.
Meals include:
•
•

All food and beverages sold for human
consumption at the seller’s location; and
Food products ordinarily sold in such form and
portions that are ready for immediate consumption
at or near the location of the seller. This includes
prepared foods, prepackaged foods, hot foods, and
foods heated on the premises for the purchaser.

A meal may be a full dinner or it may be a single item.
Meals are subject to sales and use taxes whether they
are served at the location of the seller, delivered to the
purchaser’s location, or sold on a “take out” basis.

Sellers of Meals: Retail establishments that sell
taxable meals include, but are not limited to:
Banquet halls
Hotels or boarding
Cafeterias
houses
Caterers
Ice cream trucks
Cocktail lounges
Mobile canteens
Coffee or donut
Pizzerias
shops
Private or social
Convenience stores
clubs
Delicatessens
Refreshment stands
Diners
Restaurants
Drive-ins
Sandwich shops
Fast food outlets
Snack bars
Grinder shops
Street vendors
Hot dog carts
Taverns

Bulk Sales of Food: The sale of food items in bulk
is not generally considered the sale of meals. Exempt
bulk food items are those items sold in quantities,
forms, or portions larger than those ordinarily
considered to be for immediate consumption or larger

Page 1 of 5

 than those ordinarily sold by eating establishments for
immediate consumption. For example, whole loaves of
bread and whole cakes and pies are considered bulk
food items and, therefore, are not subject to sales and
use taxes. However, whole cooked chickens, whole
racks of ribs, or trays of pasta, when sold by eating
establishments or caterers, are considered food items
for immediate consumption and are subject to sales and
use taxes.

Taxable Meals: Food for immediate consumption
constituting taxable meals includes, but is not limited to:
• Coffee or tea (ready to consume, hot or iced);
• Sandwiches and grinders;
• Popsicles, ice cream cones, cups, sundaes, and other
individual servings of frozen desserts unless sold in
factory prepackaged multi-unit packs;
• Ice cream, frozen yogurt, and other frozen desserts
sold in containers of less than one pint;
• Yogurt sold in containers of eight ounces or less
unless sold in factory prepackaged multi-unit packs;
• Fountain drinks, shakes, and syrup-flavored crushed
ice drinks;
• Bottled or canned fruit juices and drinks, containers
of milk, and non-carbonated mineral or spring water
sold in containers of 16 fluid ounces or less unless
sold in prepackaged multi-unit packs;
• Salads sold at salad bars;
• Salads sold in containers of less than eight ounces;
• Donuts, muffins, rolls, bagels, and pastries (five or
fewer);
• Cookies sold loose that retailers place in containers
for customers (five or fewer when cookies are sold
by quantity or less than eight ounces when cookies
are sold by weight);
• Pies or cakes by the slice;
• Prepackaged or factory-sealed bags or packages of
five ounces or less of chips, popcorn, nuts, trail mix,
crackers, cookies, snack cakes, or other snack
foods;
• Single pieces of fruit;
• Pizza, whole or by the slice;
• Cooked chicken sold by the piece, including
“buckets” of chicken, and whole cooked chickens;
• Ribs sold by the piece or portion and whole racks of
ribs; and
• Items such as salads, side dishes, and rolls, when
sold as part of “family pack” meals including,
typically, whole chickens or buckets of chicken,
even when the items exceed the weight or quantity
limits specified above.

Items sold in quantities or portions larger than those
specifically noted above are considered bulk sales of
food. Therefore, they are not generally taxable meals.
The distinctions between meals and bulk food apply to
sales by eating establishments and caterers, but do not
apply to sales by supermarkets or sales of food
products in coin-operated vending machines. See
Policy Statement 2001(5), Sales and Use Tax
Exemption for Food Sold Through Coin-Operated
Vending Machines, for information about food
products sold through coin-operated vending machines.
See below for special rules for sales by supermarkets.

Special Rules for Supermarkets: A supermarket
means any store commonly known as a supermarket or
grocery store, excluding any store commonly known as
a convenience store. A supermarket is primarily
engaged in the retail sale of a wide variety of food
products and contains, at a minimum, the following
sections or departments: dairy; delicatessen;
condiments; bread and baked goods; canned and dry
goods; frozen foods; fresh, smoked, and prepared
meats; poultry; fresh fruits and vegetables; household
supplies; and paper goods. A specialty store that is
primarily engaged in the retail sale of one variety of
food product such as seafood, produce, candy, dairy,
bakery products, meats, or delicatessen items is not
included in the definition of supermarket.
Supermarkets are not generally sellers of meals. The
rules describing the difference between bulk sales of
food and sales of meals listed in this Policy Statement
do not apply to food items sold in supermarkets. The
items listed above as taxable meals are not taxable
when sold in supermarkets except as noted below.
The following are sales of meals by a supermarket and
are subject to sales and use taxes:
• Catering services performed by a supermarket (see
Catering Services, below);
• Sales of sandwiches, grinders, coffee, or tea
prepared in a supermarket at a delicatessen counter
or elsewhere for takeout. The sales of these items
sold anywhere in a supermarket are taxable;
• Sales of meals in areas of a supermarket where food
is intended to be consumed in the supermarket,
such as at snack bars or food courts. The meals
sold in these designated eating areas are taxable
even if taken off the premises by the purchaser.
Example 1: A customer purchases a meal in the snack
bar area of a supermarket and pays for it at the snack
bar area. This transaction is taxable because the sale
occurred in the area designated for eating.

Page 2 of 5

 Example 2: A customer purchases and pays for a meal
at the snack bar of a supermarket and does not eat it at
the designated eating area, but takes it home. This
transaction is taxable because the sale occurred in the
area designated for eating.
Example 3: A customer sits in an area designated for
eating and while at the table, gives a supermarket
employee money for a pizza, whole cooked chicken, or
salad. This transaction is taxable because the meal was
purchased in the area designated for eating.
Example 4: A customer purchases a meal in the
checkout line of a supermarket then consumes the meal
in a designated eating area. This transaction is
nontaxable (except if it is the sale of a sandwich,
grinder, coffee, or tea) because the meal was not
purchased in the area designated for eating.

Catering Services: Meals provided by catering
services are taxable. Catering means preparing meals
and either serving the meals on premises designated by
the customer, or delivering, but not serving, the meals
to premises designated by the customer. Such persons
are caterers even if they only serve the meals and do
not provide the food products that constitute the meals.
Conn. Agencies Regs. §12-426-29(c)(3).
Taxable catering services also include the preparation
of trays, pans, or platters of food even if they are not
delivered or not served by the caterer.
Supermarkets, as well as eating establishments, may
perform taxable catering services. However, if a
supermarket prepares platters of food (other than
sandwiches, grinders, coffee, or tea) at a delicatessen
counter or elsewhere for takeout, but does not deliver
the items, it is not providing catering services, and the
items are not taxable.

Meals or Snacks Furnished in a Meeting
Room, Banquet Room, or Social Club Room:
Where an eating establishment does not rent a room for
events such as meetings, conventions, parties,
banquets, and other social functions unless it also
furnishes meals, the total charges, whether or not the
charges for the room(s) and meals are separately stated,
are treated as charges for the meals, and are subject to
sales and use taxes. An eating establishment means a
place where meals are sold and includes, but is not
limited to, banquet halls, restaurants, social clubs, and
hotels,
Where an eating establishment rents a room for events
such as meetings, conventions, banquets, parties, and
other functions without furnishing meals, and:

• Meals (whether banquet or buffet-style) are served
or consumed in the room, the eating establishment’s
total charges, whether or not the charges for the
room and meals are separately stated, are treated as
charges for the meals and are subject to sales and
use taxes.
• More than one room has been rented for use at the
same function with one room being used for the
serving of meals and another room being used for
the function such as a meeting. The eating
establishment’s separately stated and reasonable
charge (based on prevailing rates in the area) for the
room not used for the serving of meals is not treated
as a charge for the meals and is not subject to sales
and use taxes. If the charge for the room being used
for the function is neither separately stated nor
reasonable, the eating establishment’s total charges
are treated as charges for the meals and are subject
to sales and use taxes.
• The customers rent the room for the function or

event. The eating establishment’s charges to the
customers for the room are not subject to sales and
use taxes. If the customer hires and pays for a thirdparty caterer, the caterer’s total charges to the
customers for the meals are subject to sales and use
taxes.
• A third party caterer rents the room. The eating
establishment’s charges to the caterer for the room
are not subject to sales and use taxes. However, the
caterer’s total charges, including any separately
stated charge for the room, to its customers are
treated as charges for meals and are subject to sales
and use taxes.
An eating establishment is not furnishing meals if it
merely provides a self-service table of nonalcoholic
beverages and snack items for those attending a
function or event. In this situation, the eating
establishment’s charges for the nonalcoholic beverages
and snack items are subject to sales and use taxes, but
its separately stated room charges are not taxable.

Resale Issues for Sellers of Meals: According to
Conn. Agencies Regs. §12-426-29(f), “an eating
establishment or caterer which furnishes, with meals,
paper napkins, paper plates, plastic tableware, straws,
and similar non-reusable items may purchase such
items without payment of sales tax” by issuing a resale
certificate to the supplier. Other non-reusable items
that sellers of meals may purchase for resale include
paper, plastic or styrofoam cups, plates and bowls,
plastic cup lids, toothpicks, and stirrers.

Page 3 of 5

 Eating establishments or caterers may also purchase
paper, plastic or styrofoam boxes, paper bags, and
other nonreturnable containers used to hold meals tax
exempt under Conn. Gen. Stat. §12-412(14) by issuing
a resale certificate.
Sellers of meals may only purchase flowers for resale
if they are chosen by the customer and are kept by the
customer at the end of the meal.
Caterers or eating establishments are the final
consumer of most other items that they purchase or
lease for use in furnishing meals and must pay sales
and use taxes on these purchases or leases. Examples
of items that sellers of meals use or consume in
providing meals include linens, tablecloths, chairs,
tables, china, silverware, food warmers, chafing dishes,
tents, and cooking equipment.

Exempt Sales of Meals and Food Items:
Circumstances under which sales of meals and food
items are exempt from sales and use taxes include
sales of:
• Tangible personal property (including meals and
food items) to or by nonprofit charitable hospitals,
nonprofit nursing homes, nonprofit rest homes, and
nonprofit residential care homes in this state for the
exclusive purposes of the institutions.
Conn. Gen. Stat. §12-412(5)
• Meals and food items served or sold on the
premises to patients in hospitals, or residents or
care recipients of residential care homes,
convalescent homes, nursing homes, and rest
homes. Effective October 1, 2000, assisted living
facilities, senior centers, and day care centers were
added to the list of health care facilities qualifying
for exemption. Also, candy, confectionery, and all
beverages are now included in the exemption for
sales of meals in these facilities.
Conn. Gen. Stat. §12-412(9)
• Meals and food items in a student cafeteria, dining
hall, dormitory, fraternity, or sorority maintained in
a private, public or parochial school, college or
university, when sold to students and staff of the
institutions. Sales made using prepaid meal plan
cards or arrangements are exempt, as are sales of
candy, confectionery, and non-alcoholic beverages.
Conn. Gen. Stat. §12-412(9)
• Items (including meals and food items such as
cookies and snack foods as well as non-food items
such as candy bars) for not more than $20 each by
Connecticut eleemosynary organizations for the
purposes of youth activities and by accredited

elementary and secondary schools for school
purposes.
Conn. Gen. Stat. §12-412(26)
• Tangible personal property (including meals and
food items) to any center of service for elderly
persons as described in Conn. Gen. Stat. §17b-425.
Conn. Gen. Stat. §12-412(35)
• Meals made by a nonprofit organization to an
elderly, disabled, or other homebound person if the
meal is delivered to the home of the person.
Conn. Gen. Stat. §12-412(46) and Conn. Agencies
Regs. §12-426-29(d)(4)
• Items purchased with federal food stamps.
Conn. Gen. Stat. §§12-412(57) and 12-412e
• Food products through coin-operated vending
machines. Sales of candy, confectionery, gum, soda
and all other carbonated beverages, and alcoholic
beverages sold through coin-operated vending
machines remain taxable.
However, effective
July 1, 2000, the exemption is expanded to include
the sales from vending machines of any items
costing 50 cents or less. See Policy Statement
2001(5) for more details.
Conn. Gen. Stat. §12-412(27)(B)

• Tangible personal property (including meals and
food items) at up to five one-day events during a
calendar year, such as bazaars, fairs, picnics, or tag
sales, by a nonprofit organization. See Special
Notice 98(11), Exemption from Sales and Use
Taxes of Sales by Nonprofit Organizations at
Fundraising or Social Events, for more details.
Conn. Gen. Stat. §12-412(94)

Non-Food Items: The following items are not food
items and are subject to sales and use taxes (unless
purchased as eligible items with federal food stamps):
alcoholic beverages; all carbonated beverages,
including water, soda, nonalcoholic beer, and
carbonated nonalcoholic wine; candy and gum.

Effect on Other Documents: This Policy
Statement modifies and supersedes Policy Statement
99(1), Sales and Use Taxes on Meals.

Effect of This Document: A Policy Statement is a
document that explains in depth a current DRS
position, policy, or practice affecting the tax liability of
taxpayers.

Page 4 of 5

 For Further Information: Please call DRS during
business hours, 8:00 a.m. to 5:00 p.m., Monday
through Friday:
• 1-800-382-9463 (toll-free within Connecticut), or
• 860-297-5962 (from anywhere)
TTY, TDD, and Text Telephone users only may
transmit inquiries 24 hours a day by calling
860-297-4911.

Forms and Publications: Forms and publications
are available all day, seven days a week:
• Internet: Preview and download forms and
publications from the DRS Web site:
www.drs.state.ct.us
• DRS TAX-FAX: Call 860-297-5698 from the
handset attached to your fax machine and select
from the menu.
• Telephone: Call 860-297-4753 (from anywhere),
or 1-800-382-9463 (toll-free within Connecticut)
and select Option 2 from a touch-tone phone.

PS 2002(2)
Sales and use taxes
Meals
Issued: 02/22/2002

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