Sales by employers to employees

Purchases of tangible personal property by employees from their employer are subject to sales tax. Employers operating a restaurant or cafeteria exclusively for employees are retailers and the gross receipts from such sales are subject to sales tax. Employees ordering merchandise from an employer's wholesale catalog for personal use are subject to sales tax. Employers who provide free meals to their employees are subject to tax on the cost of the items given away. When an employer is unable to determine the exact cost of a giveaway meal, tax is due on fifty percent of the retail selling price of the meal.