Were food, drinks, gratuities, and ceremony charges for a church-sponsored wedding taxable in Texas?

Plain-English summary

A church-sponsored wedding was catered away from church grounds, but the request did not say who prepared the food. The Comptroller supplied rules for both possibilities.

Food, cake, tips, and similar items prepared and sold by the church were exempt whether sold on or off church grounds. Alcoholic beverages remained taxable because they did not qualify as food.

When a caterer prepared and served the food, the caterer's charges for food, cake, and alcoholic beverages were taxable whether the church or an individual bought them. Caterer gratuities were taxed under Rule 3.337.

Separately stated charges for conducting the wedding ceremony were not taxable in either situation.

What this means for you

The result depended on who prepared and sold the meal. A church's exempt treatment did not automatically extend to a third-party caterer's charges.

Common questions

Was food prepared and sold by the church taxable? No.

Were alcoholic beverages sold by the church taxable? Yes.

Were a caterer's food and cake charges taxable? Yes, whether the church or an individual bought them.

Were separately stated wedding-ceremony charges taxable? No.

Citations and references

• 34 Tex. Admin. Code Rule 3.293(c)(2) (food, food products, meals, and food service)
• 34 Tex. Admin. Code Rule 3.322 (exempt organizations)
• 34 Tex. Admin. Code Rule 3.337 (gratuities)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9011L1056G12

Original ruling text

November 15, 1990

Dear ** :

In your letter of August 8 you requested information regarding the taxability
of charges for a church sponsored wedding.

You indicate that the wedding was catered at a location away from the church.

Since you didn't indicate whether the food, cake, etc. was provided by the
church or a caterer, I will provide some general guidelines.

If the food, cake, etc. was prepared and sold by the church (either on or off
the church grounds), the charge for food, cake, tips, etc. are exempt as
indicated in subsection (c)(2) of the enclosed Comptroller's Rule 3.293. (Food;
Food Products; Meals; Food Service). Charges for alcoholic beverages are
taxable because these items don't qualify as food.

If the food, cake, etc. was prepared and served by a caterer (either on or off
the church grounds), the caterer's charges for food, cake, and alcoholic
beverages are taxable whether purchased by the church or an individual. In
particular, the church would owe tax on these taxable charges because a
religious organization may only purchase taxable items which relate to the
purpose of the exempt organization. I have enclosed Comptroller's Rule 3.322
(Exempt Organizations) which discusses purchases by exempt organizations.
Charges by a caterer for gratuities are taxed as indicated in the enclosed
Comptroller's Rule 3.337 (Gratuities).

In either case, separately stated charges to conduct a wedding ceremony aren't
taxable.

If you can't determine the taxability based on the above guidelines, you should
provide specific information regarding the situation.

This opinion is based on the facts presented. If there are additional or
different facts, the opinion may change.

If you have any questions, please contact Tax Correspondence. You may call toll
free 1-800-252-5555, or our regular number is 512/463-4600. My extension is
3-4662. You may write me at Tax Correspondence, Comptroller of Public Accounts.

Sincerely,

Bob Jeffcoat
Tax Correspondence