ARSD § 64:06:03:52 — Restaurant supplies

Restaurants where the
public is invited to eat on the premises or to purchase prepared food and carry
it out for consumption elsewhere are consumers of items such as paper napkins,
drinking straws, and plastic tableware furnished to patrons. Retailers selling
items of this nature to restaurants and similar establishments are subject to
sales tax on the gross receipts from the sale of such items.
Containers for food or beverages such
as paper cups, drinking glass covers, disposable food trays, wrappers, and
plastic bowls which hold tangible personal property whose sales are subject to
sales tax are considered a part of the taxable sale. Persons selling these
containers to retailers are not liable for sales tax on these items.