Purchases of Disposable Paper Products by Restaurants

Purchases of paper plates, bowls, cups and lids by a food server for use as containers for food sold are entitled to the resale exclusion. This exclusion applies whether the food sold will be consumed on or off the premises. The tax does apply, however, to a food server's purchases of disposable containers and wrappers made available for discretionary use and to all purchases of disposables such as napkins, straws, utensils and stirrers which are not in the nature of containers.