ARSD § 64:06:03:26 — Meals

Receipts from meals furnished by
restaurants, hotels, and boarding houses are taxable. If meals are furnished by
proprietors of cafes, restaurants, or boarding houses to employees and a
separate charge is made, sales tax must be paid on the receipts. If the
employer furnishes meals to employees as part consideration for employment, the
restaurant, cafe, or boarding house is liable for the state and municipal use
tax upon the cost of the meals so furnished to the employees. This tax includes
the applicable municipal and state sales and use taxes.