Food & Beverage Tax

The food and beverage tax is a 1 percent sales tax leveraged from prepared foods and beverages served in the Town of Hillsborough. The tax is in addition to state and local sales tax. The funds levied from this tax support the activities of the Tourism Board.

The tax is payable monthly to the town on or before the 25th day of the month following the month in which the tax is collected. For example, tax on food and beverage sales during April are due and payable by May 25.  

Those persons failing to file will be subject to the following penalties:

1. $2 per day for each day's failure to file a return, up to a maximum of $500.
2. An additional penalty of 5 percent of the tax due if a prepared food and beverage tax report has not been filed or the tax paid within 30 days after the due date.
3. An additional 5 percent penalty for each additional month or fraction of a month. Evasion of the tax will be considered a misdemeanor and shall be punishable by a fine not to exceed $500 and imprisonment not to exceed six months.

The policy on the food and beverage tax can be obtained in Chapter 8 of the Town Code.

Contact (919) 732-2104 Ext. 240 with any questions about the food and beverage tax or to request filing information and forms.