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Bulletin #34

Taxpayer Services Division
Rev. 11/90

Purchases of Meals/Lodging by Exempt Organizations

This Bulletin has been modified and superseded by PS 96(7); cited in Ruling 92-5; cited in AN 95(10)

Since the notice of nullification of exemption certificates issued by exempt organizations to restaurants, hotels, caterers, etc. for banquets, dinner parties, fundraisers, testimonials, etc. was issued, the following requirements are necessary:

Sales of meals/lodging made to a charitable, educational or religious organization which holds a CONNECTICUT Sales Tax Exemption Certificate or to an agency of the United States, the State of Connecticut or a Connecticut municipality are nontaxable when used by the institution, exclusively, for the purposes for which it is organized provided all the following conditions are met:

  1. The seller directly charges the organization or governmental agency for the meals and/or lodging.
  2. The organization or governmental agency directly pays (by check drawn on its own account) the seller (no credit card or cash payment).
  3. The organization or governmental agency is not reimbursed, directly or indirectly, by donation or otherwise for its payment for the meals and/or lodging and the event is not being underwritten or subsidized.

Prior approval for each event must be obtained from this Department by submitting a completed APPLICATION FOR APPROVAL OF SALES TAX EXEMPTION FOR MEALS and/or LODGING three weeks in advance. Please send the application to:

Taxpayer Services Division,
Department of Revenue Services
25 Sigourney Street
Hartford, CT 06106

Some examples of nonqualifying, taxable events are: fundraisers; class picnics and proms; dinner dances; seminars and conferences where there is a registration fee or any event for which there is an attendance charge or a donation.