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Letter Ruling

Letter Ruling Letter Ruling 81-32: Two for One Offers

Date: 04/16/1981
Organization: Massachusetts Department of Revenue
Referenced Sources: Massachusetts General Laws

Sales and Use Tax


April 16, 1981

You inquire as to the computation of the sales tax when a restaurant offers its customers two meals for the price of one. The restaurant does not require the customer to present a coupon, certificate or other consideration.

Massachusetts General Laws Chapter 64H, Section 1(14) defines "sales price" as "the total amount paid by a purchaser to a vendor as consideration for a retail sale, valued in money or otherwise."

Based on the foregoing it is ruled that where a restaurant sells two meals for the price of one, and the customer is not required to present a coupon, certificate, or other consideration, the sales price subject to Massachusetts tax is the actual amount paid.

If, however, to receive two meals for the price of one, the customer must present a coupon or certificate, such as a certificate demonstrating membership in a dining club, such coupon or certificate is part of the consideration for the purchase of two meals and the sales tax is levied on the usual sales price of the two meals.


Very truly yours,


/s/L. Joyce Hampers


L. Joyce Hampers

Commissioner of Revenue




LR 81-32

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