Health - Hospitals and infirmaries

Health institutions operating cafeterias, gift shops, or novelty shops open to the public are required to collect and remit sales tax on their gross receipts. If the cafeteria is operated solely for convenience of the staff, the proceeds are not subject to tax. Sales to these institutions of food supplies used in the cafeteria operation and sales of inventory for gift shops or novelty shop purposes are sales for processing or resale and are not subject to tax. Hospital sales of lodging accommodations to nonpatients, including sales to families of registered patients, are subject to sales tax.