A small Senior Center in Ohio charges $3 for a hot meal each day to clients. The Center is a 501c3 non-profit organization registered with the state. It receives funds from the county Senior Center, but the $3 per meal charge does not cover the expense of food and kitchen help, so they're basically operating at a loss. Are they required to pay sales tax to the state for meals consumed on-site for senior nutrition? Do they need a vendor's license? Their accountant has been working under the assumption that because it is a non-profit organization that provides meals to seniors, that it is exempt from sales tax.
Thank you for your help!