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rmxt | 8 years ago

Not sure why this is downvoted. California, like many other jurisdictions, seems to make a distinction between groceries/"raw" foods, and "prepared foods" when it comes to sales taxes. Unprepared foods are generally exempt from sales tax, while store-prepared foods are not exempt. E.g. an unsliced bagel in NY is untaxed, but a sliced bagel can/must be taxed. Fruit and vegetables likely fall into the untaxed category.

From Wikipedia: In grocery stores, unprepared food items are not taxed but vitamins and all other items are. Ready-to-eat hot foods, whether sold by supermarkets or other vendors, are taxed. Restaurant bills are taxed. As an exception, hot beverages and bakery items are tax-exempt if and only if they are for take-out and are not sold with any other hot food. If consumed on the seller's premises, such items are taxed like restaurant meals. All other food is exempt from sales tax.

https://en.wikipedia.org/wiki/Sales_and_use_taxes_in_Califor...

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seanmcdirmid|8 years ago

It is more complex that that: hot food might not be taxed if it is "to go" (Starbucks and their breakfast sandwiches ....), Whole Foods will always apply tax to its food bar items, the ice cream parlor down the street will apply sales tax if you say "for here" but not if they assume take out.

It is very very confusing, and I haven't really figured it out yet.

rsynnott|8 years ago

Sales tax on food in general tend to be pretty arcane. Notoriously, McVities sued the British revenue services to have some of their biscuits classified as cake instead of biscuits, because there's no VAT on cake. (They won.)