Burger King Corp. v. Director, Division of Taxation

This is an appeal from a judgment entered by the Tax Court, 9 N.J.Tax 251, setting aside a deficiency assessed by the Director of the Division of Taxation. The sole question presented is whether the face value of nonreimbursable coupons for which the retailer receives no remuneration is taxable as a receipt from the sale of food or drink under N.J.S.A. 54:32B-2(d) and N.J.S.A. 54:32B-3(c).

The facts are not in dispute. Burger King, a subsidiary of The Pillsbury Company, sells a variety of food and drink products in its establishments both for take-out and on-premises consumption. In the course…