They also redefined candy to say that if it required refrigeration or contained flour, it's not candy and is tax-exempt. Why do you think I always give out Kit Kat/Twix/100 Grand/Take 5/Twizzlers for Halloween each year?

In Canada, one donut gets taxed, while a dozen donuts does not.

It's got some very interesting points. One is that in all cases, either sales tax or use tax applies. Use tax is the exact same amount but the purchaser is responsible for reporting and paying it. They are mutually exclusive; if you pay sales tax, use tax doesn't apply. If you don't pay sales tax, use tax applies. So from a legal standpoint, you're supposed to be paying the same percentage either way, it's just a question of whether the seller charges you at time of sale or not.

It also has a long list of rules for when to apply sales tax on food and when not to. TLDR: It's complicated.

@compuguy1088: Not similar, additional. Not in my neck o' the woods - Fairfax, Prince William, Alexandria, or Arlington, apparently, but go out to Leesburg or down to Spotsylvania and it gets confusing, there is apparently an additional percentage on a county or city basis. Why they do this in Norfolk and not in NoVA where it could pay for some of our roads, I don't know.

California (my state) is already in a huge budget crisis. Teachers are being fired. I actually mostly blame the voters for causing this mess. We have enacted so many zany propositions that block off huge chunks of the general fund for special interests that we no longer have a general fund that can fund anything.

But anyways, I'm not sure that finding ways to not pay California taxes is in our best long term interest. Or short term interest for that matter.

"Domestic consumption" vs "prepared food". We don't change it for toasted vs untoasted or coffee in a store or out.

The closest we'd get to that is a starbucks in a grocery store could theoretically charge tax on the whole bean coffee they sell where as if you bought it in the coffee isle it would be exempt.

The tax on free stuff is standard everywhere though.

Otherwise driving to a lower tax zone (3.5%) to avoid paying a higher tax (7%) would be considered tax evasion and fraud.

I really hope this was sarcasm...

My first job was at a 7-Eleven in PA. If someone nuked their burrito before paying, it was prepared food subject to sales tax. If they paid first, they were welcome to use our microwave to cook their frozen, untaxed burrito.

Now if I could just get the hang of "meal taxes" in VA, which only seem to occur outside the Beltway communities but make me feel like I'm paying sales tax in DC!

You don't have to tip in a restaurant if you get your food to-go, but you never tip for fast food.

The three subways around me in Irvine have never charged me sales tax. I always get the chicken and bacon ranch (auto-toasted sub!) and it's always been menu price. Unless this is a recent development (I haven't been in a couple of weeks).

That chicken breast, btw, was just as cold as everything else they pull out of the meat case.

Used to get this in my past life as a bagel-slinger. There are some weird rules about what is "prepared" (taxed) and what isn't. For instance, for us in NJ (in 1997) less than 6 bagels was "prepared" and thus subject to tax. There was a long-expired promo coupon for 3 free bagels that we were still honoring. I had 2 or 3 people walk in, hand me the coupon (which was expired!) and ask for 6 bagels then complain that they got charged $1.59 instead of $1.50! You got $1.50 in free bagels, and you're gonna argue with the pimply-faced-kid at the counter over 9 cents?

That's just low. It's stealing pennies from the wishing well. Think of the starving orphans!

Washington is even more weird with this tax. toasted or cold, it's taxed either way. However, if it's toasted, it becomes prepared food, and people with food stamps can't buy it. Same thing in grocery stores. You can go to a grocery store and buy a cold sandwich from the deli with food stamps. But if you have them toast it, you can't buy it anymore, nor any of the other hot food items.

I wish I never worked retail, I've retained so much useless knowledge.

The government calculates a percentage of customers that are likely to eat in and charges the company that tax whether or not they've actually collected it. You probably won't care about making a large corporation pay the tax, but keep in mind that small family owned restaurants pay the tax as well, and it can be pretty hefty. Don't cheat small businesses (at least the ones you like).

...and there's even more..

for example, in one county if you buy a granola bar in a coffee shop it is taxed as it is a 'snack' food, yet right across the street in a grocery store, its considered a food food.

oh its soooo confusing, especially from a tech support standpoint...

Hahahaha... I always got a kick out of the "for here/to go" tax. At the Coffee Bean near my house, they always try and help steer you towards the right answer and say "that's to-go, right?" rather than "for here or to-go?". For the longest time I didn't understand why they did that and I thought it was a subtle hint they wanted me to leave!

New York state has sort of the same issue with food stamps - at Wegmans, if you order a regular sub, you can use food stamps, but if you order a "hot" one (meatball, chicken finger, etc), you cannot use food stamps. Also, if you choose to eat in, you must be charged sales tax on anything you are eating there, like a restaurant, so your apple could be taxed.

Power to the people!

@edison234: familiar with this in ohio. always say to go. quiznos, wendy's, etc...

Our Vice President says that paying taxes is patriotic. Toast your buns, get your coffee for here and feed the Tree of Liberty!

Is that because you are paying tax on a service at that point, and not just food? O_o