Sales Tax Slice: Does Bake-at-Home Pizza Slice Away at the SSUTA?


Pizza is the easy crowd pleaser when dinner time rolls around, but the tax on it? Not so simple. How much thought goes into how your pizza is taxed? If the last few weeks are any indication, a lot.

The State and Local Advisory Board of the Streamlined Sales Tax Governing Board, for example, recommended that the governing board approve a “toggle” that allows states to determine whether to exempt bake-at-home pizzas from the streamlined definition of prepared food, according to today’s edition of Bloomberg BNA’s Daily Tax Report. Two states voted no on the motion, AM14002.

The Streamlined Sales and Use Tax Agreement (SSUTA) is a state-led voluntary effort to help states administer a simpler and more uniform sales and use tax system.

And in the heartland, an Illinois man filed a class action lawsuit against Papa John’s pizza chain, claiming that the company incorrectly charged sales tax on delivery fees in violation of Illinois law, according to a St. Louis television news station.

Continue the discussion on Bloomberg BNA’s State Tax Group on LinkedIn: Should SSUTA member states be able to determine for themselves whether bake-at-home pizzas are excluded from the streamlined definition of prepared food?

For more information about this and other state tax issues, sign up for a free trial of the Bloomberg BNA Premier State Tax Library. 

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