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Article
IV - Privilege Taxes
Sec.
___-455. Restaurants and Bars.
(a) The tax rate
shall be at an amount equal to _______ percent (___%) of the gross
income from the business activity upon every person engaging or continuing
in the business of preparing or serving food or beverage in a bar,
cocktail lounge, restaurant, or similar establishment where articles
of food or drink are prepared or served for consumption on or off
the premises, including also the activity of catering. Cover charges
and minimum charges must be included in the gross income of this business
activity.
(b) Caterers and
other taxpayers subject to the tax who deliver food and/or serve such
food off premises, shall also be allowed to exclude separately charged
delivery, set-up, and clean-up charges, provided that the charges
are also maintained separately in the books and records. When a taxpayer
delivers food and/or serves such food off premises, his regular business
location sha
ll still be deemed
the location of the transaction for the purposes of the tax imposed
by this Section.
(c) The tax imposed
by this Section shall not apply to sales to a qualifying hospital,
qualifying community health center or a qualifying health care organization,
except when sold for use in activities resulting in gross income from
unrelated business income as that term is defined in 26 U.S.C. Section
512.
(d) The tax imposed
by this Section shall not apply to sales of food, beverages, condiments
and accessories used for serving food and beverages to a commercial
airline, as defined in A.R.S. § 42-5061(A)49, that serves the
food and beverages to its passengers, without additional charge, for
consumption in flight.
(e) The tax imposed
by this Section shall not apply to sales of prepared food, beverages,
condiments or accessories to a public educational entity, pursuant
to any of the provisions of Title 15, Arizona Revised Statutes, to
the extent such items are to be prepared or served to individuals
for consumption on the premises of a public educational entity during
school hours.
(f) For the purposes
of this Section, "accessories" means paper plates, plastic eating
utensils, napkins, paper cups, drinking straws, paper sacks or other
disposable containers, or other items which facilitate the consumption
of the food.
Web.
Rev. Date: 6-11-2007
©2001 Model City Tax Code
All rights reserved.
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