When did a grocery store's food sales count as taxable meals under Connecticut Ruling 89-171?

Note -- superseded historical guidance. DRS marks this information "not current" and states that Policy Statement (PS) 2019(5) superseded the ruling.

Plain-English summary

Food-product sales were generally exempt, but meals sold by an eating establishment or caterer were excluded from that exemption. Meals were food products furnished, prepared, or served in a form and portion ready for immediate consumption.

The ruling's eating-establishment definition included restaurants, cafeterias, grinder shops, pizzerias, drive-ins, fast-food outlets, ice-cream trucks, hot-dog carts, vending machines, refreshment stands, sandwich shops, clubs, lounges, taverns, diners, snack bars, and lodging businesses furnishing meals.

Grocery stores were not eating establishments unless they provided an eating area for customers.

What this means for you

The historical grocery-store distinction turned on whether customers had an eating area. PS 2019(5) later superseded the guidance.

Common questions

Were food products generally exempt? Yes under the ruling.

Were ready-for-immediate-consumption meals exempt? Not when sold by an eating establishment or caterer.

Was a grocery store an eating establishment? Only if it provided a customer eating area.

Citations and references

• Conn. Gen. Stat. § 12-412(13), as cited in the ruling.
• Public Act No. 89-251, as cited in the ruling.
• Policy Statement (PS) 2019(5) -- identified by DRS as superseding this ruling.

Source

• Landing page: Connecticut DRS Rulings
• Ruling: Ruling 89-171

Original ruling text

Ruling 89-171, Meals

This information is not current and is being provided for reference purposes only

Ruling 89-171

Meals

This Ruling has been superseded by PS 2019(5)

The sales of food products are exempt from sales and use tax. Meals sold by an eating establishment or caterer are excluded from the food product exemption. Meals are defined by section 12-412(13) of the Connecticut General Statutes, as amended by Public Act No. 89-251, as "food products which are furnished, prepared or served in such a form and in such portion that they are ready for immediate consumption."

Section 12-412(13) of the Connecticut General Statutes defines eating establishments as follows:

"Eating establishment" means a place where meals are sold and includes a restaurant, cafeteria, grinder shop, pizzeria, drive-in, fast food outlet, ice cream truck, hot dog cart, vending machine, refreshment stand, sandwich shop, private or social club, cocktail lounge, tavern, diner, snack bar, or hotel or boarding house which furnishes both lodging and meals to its guests.

Grocery stores are not included in the definition of eating establishments. Accordingly, grocery stores are not deemed to be selling meals unless the grocery stores provide an eating area for customers.

LEGAL DIVISION

October 30, 1989