In California, there’s no sales tax from grocers on certain snack foods. Can a restaurant charge the tax?
Posted by admin on Jan 4, 2007 in United States |
Jammer asked:
Ex. Buy Twinkies in grocery store-no sales tax. If you buy Twinkies at a restaurant is there sales tax?
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Ex. Buy Twinkies in grocery store-no sales tax. If you buy Twinkies at a restaurant is there sales tax?
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Restaurants collect a meal tax. It’s levied on most if not all purchases. The meal tax rate is often higher than the general sales tax rate.
I don’t know about California, but that is how it works in Ohio. The sales tax exemption applies to food purchased ‘to be consumed off the premises’. Food purchased to eat AT the restaurant is taxed. Food purchased ‘to go’ is not.
Technically, if it is prepared food, then the restaurant must charge tax. If you really felt the need to push it, then you could insist on not paying the tax on packaged items like chips or twinkies, but I doubt that most cashiers will know what you are talking about and there is no law that says they have to sell it to you.
Most California food services, like a Starbucks, will ask, Is that for here or to go? If you consume the food on the premises, it is subject to sales tax. If you take the food out, it is not subject to tax.