2007-02-08 09:05:14 · 7 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ Other - Taxes
It's a Meal tax, one of many types of Sales and Use taxes. You're not buying just food; you're buying a service as well as a product. It's not like the restaurant charges the cost of food separately. It's also much cheaper to buy the food and cook it yourself. Having your food prepared for you, served to you, and cleaned up after you could be considered a luxury. Do you know how high luxury taxes are? Be happy it's a simple Meal tax, lol.
2007-02-08 09:29:38 · answer #1 · answered by datette 3 · 0⤊ 0⤋
It depends on the state and their laws. Here in Cincinnati, OH there is a soda tax so even if you take your food to go, the food will not have tax but they will charge tax on the soda portion of your meal. Also they charge you tax if you eat inside the restaurant.
2007-02-09 16:50:16 · answer #2 · answered by potatochip 7 · 0⤊ 0⤋
In most sales taxes, the issue is prepared food versus food. Meal Taxes are sometimes levied separate and apart form the sales tax.
The states are trying to simplify the sales tax laws so that they can ask Congress to require businesses to collect all the state's sales tax. If you get bored you may find the link below nauseating. It is all about the sales taxation of food.
2007-02-08 20:30:46 · answer #3 · answered by zudmelrose 4 · 0⤊ 0⤋
Food from the grocery store (except for soda, coffee and prepared foods in the deli) are considered necessities, and are not subject to sales tax. Foods from a restaurant, soda, coffee, and any other item that is prepared for you is considered a luxury and is subject to sales tax. Do you need it or do you want it?
2007-02-08 22:03:31 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Even if you live in a state that doesn't charge sales tax on food (though many do!) most states DO impose a "Meal Tax" that is charged on all restaurant meals.
2007-02-08 19:58:09 · answer #5 · answered by Bostonian In MO 7 · 0⤊ 1⤋
For whatever reason, the state legislature differentiated between unprepared food and prepared food.
Here in Minnesota, unprepared food is not subject to sales tax but prepared food is, and at a higher rate.
Why? Who knows.
2007-02-08 17:10:48 · answer #6 · answered by Wayne Z 7 · 1⤊ 0⤋
Because going out to eat is considered a luxury & the restaurant is for profit.
2007-02-08 20:30:14 · answer #7 · answered by ♣Hey jude♣ 5 · 0⤊ 0⤋