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1. The sales tax is imposed on the purchase price paid or charged, including the fair
<br /> market value of the property exchanged at the time and place of the exchange, excluding,
<br /> however, from the consideration or purchase price, the fair market value of the exchanged
<br /> property if: (1) Such exchanged property is to be sold thereafter in the usual course of the
<br /> retailer's business; or (2) Such exchanged property is a vehicle and is exchanged for another
<br /> vehicle and both vehicles are subject to licensing, registration, or certification under the laws of
<br /> this state, including, but not limited to, vehicles operating upon public highways, off highway
<br /> recreation vehicles, watercraft, and aircraft.
<br /> 2. The exchange of three or more vehicles of the same type by any person in any
<br /> calendar year in transactions subject to the provisions of this chapter shall be prima facie
<br /> evidence that such person is engaged in the business of selling vehicles of the type involved in
<br /> such transactions and that such person is thereby subject to any licensing requirements necessary
<br /> to engage in such activity.
<br /> J. Food and drink: The sales tax is imposed upon the amount paid for all sales and
<br /> purchases of food or drink as defined in section 3.20.020.B.17 and served or furnished in or by
<br /> restaurants, cafes, lunch counters, cafeterias, hotels, drugstores, supermarkets, social clubs,
<br /> nightclubs, cabarets, resorts, snack bars, caterers, carryout shops, and other like places of
<br /> business at which prepared food or drink is regularly sold, including sales from pushcarts, motor
<br /> vehicles, and other mobile facilities or any other place at which meals or food are regularly sold
<br /> or are required by law to have foods or meals available for sale. Cover charges shall be included
<br /> as part of the amount paid for such food or drink. Any mandatory service or service- related
<br /> charge, whether described as such or as a tip, gratuity, or otherwise, shall be included as part of
<br /> the purchase price paid for such meals unless the full amount of the charge is passed on to the
<br /> employees of the food service establishment who have provided direct service to each person
<br /> paying the charge, and if all federal and state income and other applicable taxes due on such
<br /> charge have been withheld by the food service establishment and paid to the appropriate
<br /> government.
<br /> Any retailer selling malt, vinous or spirituous liquors by the drink may include in the sales price
<br /> the tax levied under this chapter. However, meals provided to employees of the places mentioned
<br /> in this subsection J at no charge or at a reduced charge and which are considered as part of their
<br /> salary, wages, or income shall be exempt from taxation under the provisions of this chapter.
<br /> K. Freight or Delivery: On the price paid or charged for freight and delivery
<br /> services or charges included in the price of the property being delivered; but not including any
<br /> charges billed separately or included as a separate charge on the vendor's invoice.
<br /> L. Gas and electric services: The sales tax is imposed upon the amount paid or
<br /> charged for gas, steam, heat and electric service, whether furnished by municipal, public, or
<br /> private corporations or enterprises, for commercial or residential consumption and not for resale.
<br /> For the purposes of this subsection L, "gas" includes natural, manufactured, and liquefied
<br /> petroleum gas. Tax is also imposed on all industrial users for the portion of such gas and electric
<br /> services provided and used for lighting or space heating or similar.
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