Stouffer Management Food Service, Inc. v. Tully

OPINION OF THE COURT

Hortense W. Gabel, J.

In this declaratory judgment action, plaintiff moves for summary judgment. Since there is no dispute as to the facts, they will not be set forth at length here.

The issue to be determined is whether a food service corporation (plaintiff) which operates in-house restaurant facilities for employees, under contracts with various employers, is liable for sales tax on reimbursed costs, management fees and subsidy payments which are received from the corporate clients pursuant to various contracts in which the employees either do not pay for the food or pay a…