Taxation of food sales

The University is responsible for assessing and collecting state and local (city) taxes for food sales. These taxes then must be remitted to the appropriate taxing authority.

Types of taxes:

  • State sales tax at 8.25%
  • Local (city) sales tax at 2%

Non-taxable food sales:

  • Student Board plans (student meal plans) are exempt from taxation
  • Student related academic programs that require students to reside in dorms are exempt from taxation. Examples: summer orientation, forensics camp.

Internal University department catering/food sales:

  • Internal university department catering is taxable at the local (city) tax rate of 2%.
  • SABRC funded student organizations (account numbers 11-26xxx) are taxed at the 2% rate.
  • Departments should provide a university account number beginning with 11xx to 29xx.

External University events:

  • External events are taxed for both state and local (city) taxes, a total of 10.25%
  • Examples: Athletic camps, student clubs (9xxx accounts), other camps, wedding receptions, other banquets, other student center or alumni center events
  • Exception: If the external event is a non-profit with a state exemption certification, then the food will be subject to the 2% tax

Other forms of payment:

  • Quick cash sales are taxable at the 10.25% rate
  • Cash sales are taxable at the 10.25% rate
  • Credit card sales are taxable at the 10.25% rate
  • Faculty/Staff BU Bucks deposits at the cashiers’ windows are taxed at the 10.25% rate