New Jersey Food Items Sold at Kiosks Taxable

Sales tax assessments on food items sold by certain New Jersey vendors operating kiosks and free-standing carts at a sports complex and mall were upheld in a recent court case. The Court indicated that the interpretation of “premises” includes the area in which customers had to enter to make their food purchases and that “for consumption on the premises” was based on their suitability for immediate consumption at the particular location. Also, the definition of “premises” focused on the location from which customers could make their purchases, rather than on whether particular areas within a larger facility were under the vendor’s exclusive control (as the taxpayers argued). (Campo Jersey, Inc. v. Division of Taxation, New Jersey Superior Court, Appellate Division, No. A-5384-04T5)

Posted on March 30, 2008