Isidor Hefter: Is food exempted from sales tax?

Isidor Hefter. Image credit: thedailymeal.com

Rosen Seymour Shapss Martin & Company LLP senior partner Isidor Hefter specializes in taxation. He lectures in the firm’s continuing education program, focusing on the areas of federal and state income taxes, and sales and use taxes. This article discusses what kinds of food and food products are subject to sales tax and which of them are exempted.
 

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The New York State Department of Taxation and Finance affirms that food and food products, sold at groceries and convenience stores, are exempted from sales tax. Below is a list, although not inclusive, of food items that may not be taxable:

• Snack cakes and cookies
• Packaged salads sold by the pound
• Fruits and vegetables
• Meat
• Canned products
• Dairy items
• Snack items like potato chips, pretzels, popcorn, and nuts unless sugar-coated, chocolate-coated, candy-coated, or honey-coated

Isidor Hefter is a member of the American Institute of Certified Public Accountants and the New York State Society of Certified Public Accountants. 

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However, under certain circumstances, some food items are sold with tax. These include the following:

• Heated food - soups, pizza products, rotisserie chicken
• Food for consumption on the premises - restaurant and coffee shop items
• Food prepared by the seller and is ready for consumption - sandwiches, ice cream preparations, and meals 

From: Isidor Hefter

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