Sparks Nugget, Inc. v. State Ex Rel. Department of Taxation

OPINION

In this appeal, we confront an issue of constitutional importance to Nevada: whether businesses in this state are required to pay sales or use tax on meals that they provide free of charge to patrons and employees. Article 10, Section 3(A) of the Nevada Constitution establishes a sales and use tax exemption for most ‘ ‘food for human consumption.’ ’ Appellant contends that complimentary patron and employee meals are exempted under this provision because the uncooked food used to prepare those meals qualified as “food for human consumption” at the time of its initial purchase, and no…