Chapter 521, Laws of 1972
A 1% tax is imposed on the gross proceeds (including but not limited to sales of beer and alcoholic beverages) of sales or gross income of certain restaurants, hotels and motels. The levy does not apply to restaurants not selling alcoholic beverages under an on-premises ABC permit and whose gross income is less than $100,000 per calendar year. All persons operating a restaurant, cafe, cafeteria, delicatessen, lunch stand, drive-in or other establishment selling prepared foods and who holds an on-premises liquor permit is subject to the special tax. A lunch counter in a store, airport, bus terminal or commercial building is classed as a restaurant. A delicatessen is subject to the tax even when operated as a part of a grocery store. This levy is in addition to all other taxes imposed. Effective August 1, 1972. No repeal date.
“Hotel” or “motel” means a place of lodging that at any one time will accommodate 6 or more transient guests (guests who are accommodated for less than 7 days) and are known to the trade as such.
“Restaurant” means all places where prepared food is served through the use of facilities to accommodate 25 or more persons and includes hotel and motel dining rooms. "Restaurant" includes a cafe, cafeteria, lunch stand or any other place of business where prepared food is sold whether for consumption upon the premises or not.