S.C. Code Regs. 117-305.1 — Educational Institutions

Colleges and universities sell or provide meals and other foods in a variety of ways.
Meals are provided to students in a cafeteria under a board plan. Under such plans, students will
purchase all their meals (breakfast, lunch and dinner) for an entire semester or year at the beginning
of the school year. This is usually done at the same time students pay their tuition and other fees.
Typically, the student who signs up for one of the board plans is given a card that is used by the
student to obtain the meals.
In addition, students who participate in a limited board plan may purchase individual meals sold by
the college or university in the cafeteria. For example, one board plan may furnish meals to students
Monday through Friday. A student under this limited plan may from time to time choose to purchase
an individual meal in the cafeteria on Saturday or Sunday.
Employees, visitors and students who do not participate in a board plan may also purchase meals
sold by the college or university in the cafeteria. Generally, these meals are purchased on an
individual basis; however, some colleges and universities sell tickets that entitles the purchaser to
several meals.
Also, colleges and universities may sell meals and food to students and others at canteens, snack bars,
and other places around the campus. In addition, food may be sold at concession stands at sporting
and theatrical events.
Finally, colleges and universities may contract with food service companies to sell or furnish meals on
campus. Under such contracts, the food service company will either be an agent of the institution or
will sell the meals to the institution, who has sold the meals to the students via a board plan.
Meals Served Under Board Plan
1. Sales to an educational institution of unprepared food products, for use in furnishing meals
under a board plan, are retail sales subject to the sales tax or the use tax.
2. Sales to a food service company of unprepared food products, for use in furnishing meals under
a board plan, are retail sales subject to the sales tax or the use tax if the food service company is the
agent of the educational institution.
3. Sales by food service companies of meals to an educational institution or directly to the students,
as part of a board plan, are retail sales subject to the sales or the use tax if the food service company is
merely under contract with the educational institution and is not the agent of the educational
institution.
For additional information concerning sales by, and purchases from, suppliers (including informa-
tion on resale certificates), see sections 117-305.3 and 117-305.4 below.
Cash or Other Food Sales, Not Under a Board Plan
1. Sales by an educational institutions of meals and other foods (including the purchase of tickets
that entitles the purchaser to several meals), other than those furnished under a board plan, are retail
sales subject to the sales tax or the use tax.
2. Sales of meals and other foods by a food service company as the agent of an educational
institution, other than those furnished under a board plan, are retail sales subject to the sales tax or the
use tax.
3. Sales of meals and other foods by a food service company, other than those furnished under a
board plan, are retail sales of the food service company subject to the sales or the use tax.
For additional information concerning sales by, and purchases from, suppliers (including informa-
tion on resale certificates), see sections 117-305.3 and 117-305.4 below.