Place of sale and local sales/use tax
The local sales tax is calculated using the rate at the location where the meals are served. Generally this will be the location of the restaurant. However if the customer receives the meals at a different location, then tax is calculated using the rate at the location where delivery occurs.
When reporting use tax, the correct location code is the location of first use.
A complete list of location codes and tax rates is available in the list of sales and use tax rates that is mailed each quarter with the excise tax return.
Note: The local tax code used on the tax return determines how the Department will distribute local sales and use taxes. Because local governments depend upon these taxes to fund local services, it’s important to use the correct location code.