Sodexho Operations, LLC v. Director, Division of Taxation

During the period from April, 1993, through December, 1998, plaintiff, Sodexho Operations, LLC, provided management services for the food-services and housekeeping departments at various hospitals and educational entities that are exempt from taxation under New Jersey’s Sales and Use Tax Act, N.J.S.A. 54:32B-1 to -29 (SUT Act). Following audits, defendant, Director of the New Jersey Division of Taxation (Director), assessed use taxes against plaintiff in the amount of $1,137,518.821 for its purchases *169of paper goods used in the entities’ food-services operations, cleaning supplies used in…