78-A:6-c Exception to Tax; Meals. –
The following are not taxable meals:
I. Meals provided on the premises of a nonprofit corporation or association organized and operated exclusively for religious or charitable purposes, in furtherance of any of the purposes for which it was organized; with the net proceeds of the meals to be used exclusively for the purposes of the corporation or association.
II. Meals provided by an organization operated for educational purposes, which organization is exempt from federal income taxation under section 501(c)(3) of the Internal Revenue Code, either directly through facilities owned and operated by such organization or indirectly through a catering or food service enterprise under contract with such organization, but only if such meals are provided:
(a) To students regularly attending the organization;
(b) To employees, faculty members or administrative officers of the organization;
(c) To volunteers providing services in connection with the organization; or
(d) To persons other than individuals described in subparagraph (a), (b), or (c), but only if the meals are provided pursuant to an activity which is related to educational purposes and the sponsor of such activity is an organization exempt from federal income taxation under section 501(c) of the Internal Revenue Code or the federal or state government of an instrumentality thereof. For purposes of this subparagraph, "educational purposes" means:
(1) The instruction or training of an individual for the purpose of improving or developing the individual's capabilities;
(2) The instruction of the public on subjects useful to the individual and beneficial to the community; or
(3) With respect to a specific educational organization, the conduct of alumni, student or athletic functions or events.
(e) The exemptions provided by subparagraphs (b) and (d) shall not apply if the meals are provided at a location where meals are offered to the general public on a regular and continuous basis without regard to an activity which is related to educational purposes.
III. Meals provided on the premises of any institution of the state, political subdivision of the state, or of the United States, to inmates and employees of the institutions.
IV. Meals provided only to patients and employees of the hospital on the premises of any hospital licensed under RSA 151, or of a convalescent home, nursing home, or home for the aged.
V. Meals provided by any person while transporting passengers for hire by train, bus, or airplane if provided on any train, bus, or airplane.
VI. Meals provided by any person while operating a seasonal camp for children under the age of 18 years, to the campers under the age of 18, and to employees, but to no others.
VII. Meals prepared and sold by a nonprofit organization other than an educational institution, in furtherance of any of the purposes for which it was organized; with the net proceeds of the meals to be used exclusively for the purposes of the organization. However, if the nonprofit organization is required to have a license issued by the liquor commission, other than licenses issued pursuant to RSA 178:22, V(l) for 3 or fewer days per year, the meals are taxable meals.
VIII. Meals provided to any employee of an operator as pay for his or her employment.
IX. Dispensing of a beverage by a single serving beverage machine where not used in conjunction with other food vending machines such as, but not limited to, commissaries. A single serving beverage machine used to dispense a beverage consumed in conjunction with a meal under the definition of restaurant shall, as to the beverage being dispensed, constitute a taxable meal.
X. In accordance with federal law, meals purchased with nutrition assistance benefits issued pursuant to a program that prohibits the assessment of a state tax on items purchased; provided, however, that when a meal is purchased in part with nutrition assistance benefits, then only that part of the meal purchased with nutrition assistance benefits is not a taxable meal.