Food, specifically the sales tax treatment of food, seems to be on the minds of many state officials these days.
Colorado Gov. John Hickenlooper signed a bill, S.B. 94, enacted March 9, which aims to ensure that the sales tax treatment of food does not change simply because a store sells it as convenience food.
Under current Colorado law, food for home consumption is exempt from state sales tax, but prepared food from restaurants, delicatessens, and convenience stores is taxable by the state if the food is intended to be consumed right away. Taxable food items include prepared sandwiches, salads, and hot foods including those heated at the store. The bill is intended to ensure that identical food items are taxed consistently regardless of where the item was purchased.
In Massachusetts, salads packaged with ‘fixings' in a manner designed to provide ease of immediate consumption by an individual are subject to the state sales tax when sold by a grocery store, according to a recent letter ruling issued by Massachusetts.
In determining whether the salad is subject to sales tax, it does not matter which section of the supermarket the salad is from, or whether the salad is sold on an eat-in or to-go basis, the letter ruling provides.
Meanwhile, Missouri’s Supreme Court found, in Aquila Foreign Qualifications Corp. v. Missouri Dir. of Rev., No. SC91784 (Mo. March 6, 2012), that a convenience store is not entitled to a sales and use tax exemption for the purchase of electricity used in its food preparation because the legislature did not intend the term “processing” to include food preparation.
For complete coverage of these developments, check out this week’s issue of the Bloomberg BNA Weekly State Tax Report.
In other developments…
For a look at the corporate and individual income tax return deadlines that have been extended as a result of Emancipation Day in D.C., check out Assistant Managing Editor, State Tax, Steven D. Roll’s article in this week’s issue of the Bloomberg BNA Weekly State Tax Report, which can be read in its entirety here.
Kate Thurber, of PricewaterhouseCoopers LLP, reviews the Louisiana High Court’s decision to decline to review Utelcom Inc. v. Bridges, a ruling that a foreign limited partner lacked nexus.
Indiana’s Legislature approves a plan to eliminate the inheritance tax, Mark Robyn and Jordan King, of the Tax Foundation reports.
KPMG issues its Film Financing and Television Programming: A Taxation Guide, which includes coverage of state incentives.
Compiled by Priya D. Nair
Follow us on Twitter at: @SALTax
Join BNA's State Tax Group on LinkedIn here: http://www.linkedin.com/groups?gid=1821701&trk=hb_side_g
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)