I think this may be a Canadian question because it seems the US pays taxes on groceries. I understand getting taxed for the drinks and such, but if I order pasta at a restaurant I get taxed, but if I buy the same ingredients and make it at home, I pay no taxes.
2007-03-14 10:57:26 · 10 answers · asked by Anonymous in Dining Out ➔ Other - Dining Out
The US does not pay taxes on grocery items, first of all. You get taxed because it is a prepared, hot and ready to eat food item. If you buy a hot roast chicken at the grocery store, you would be taxed for that too. Or a sandwich that is prepared in the grocery deli. Remember prepared, ready to eat Meal. Chips and the like don't count, because it is made in a factory setting. I guess it is basically food that is prepared and is ready to be eaten at the same place. Laws are confusing! Hope this helped.
2007-03-14 11:10:14 · answer #1 · answered by stephanie c 3 · 0⤊ 1⤋
It's a state-by-state thing. In some states, groceries are taxed, and in others, they aren't (except, as you say, junk food and such). I guess it's really more of a sympathy non-tax for the states that don't tax, so that the poor are not taxed on necessities.
But you are taxed on the identical items when you go out because you aren't having it at home, being frugal. In other words, you are enjoying the luxury of having someone else prepare your meal and clean up after you. Make sense now?
2007-03-14 19:55:22 · answer #2 · answered by thankamy 3 · 0⤊ 0⤋
Wisconsin does not pay taxes on food purchased at the grocery store. To me eating out at a restaurant is a luxury. I think thats the basis for taxing restaurant food.
2007-03-14 18:07:38 · answer #3 · answered by Dusie 6 · 0⤊ 0⤋
In California there are no taxes on food groceries. There used to be a "snack tax" but it was repealed mainly because snack is hard to define - Cinnamon graham crackers were snacks, plain were not.
Dining out is considered a service, not a grocery.
2007-03-15 00:37:46 · answer #4 · answered by jellybeanchick 7 · 0⤊ 0⤋
wow we pay taxes on our groceries! anyway when you dine out you are paying the cities tax on whatever you ate,it's not like going to the grocery store, they prepare, serve and cleanup the mess, i think that is all tied in together. health inspectors also have to be paid and licences and all kinds of little fees that the owners have to pay. did you know that if employees eat for free that the owner has to pay the taxes on what thy ate, that is why lot's of restaraunts charge something to there employees for there meals. taxes are a tricky thing.
2007-03-14 19:07:06 · answer #5 · answered by gone fishing! 5 · 0⤊ 0⤋
The US does not pay tax on grocery items either. The tax your paying is a luxury tax, it is a luxury to eat out, you didn't have to cook it, so they will tax you for it, kinda like a little punishment for treating yourself!
2007-03-14 21:31:57 · answer #6 · answered by chefck26 4 · 0⤊ 1⤋
It depends if the food is prepared or not. If it is already prepared then you pay taxes on it. Not all states in the US have tax free groceries. I know in Idaho they pay taxes for food whether it's prepared or not.
2007-03-14 19:53:10 · answer #7 · answered by caligrl 1 · 0⤊ 0⤋
Eating in restaurants,fastfoods,hotels,etc would come more under the catagory of luxury tax then buying food to feed your family for every day survival and needs.
2007-03-14 19:02:37 · answer #8 · answered by Joy 4 · 0⤊ 0⤋
The tax you pay is the "seating" tax, because you are using their tables, chairs, restrooms, etc.
2007-03-15 19:38:08 · answer #9 · answered by Jman 3 · 0⤊ 0⤋
i know its ridiculious
2007-03-14 18:19:21 · answer #10 · answered by donielle 7 · 0⤊ 0⤋