Stuart A. Bronstein
Guest
|
 Posted:
Mon Oct 10, 2005 4:01 pm Post subject:
Re: California Sales Tax and Grocery Stores |
|
|
glendale202-taxes@yahoo.com (A.G. Kalman) wrote:
| Quote: | Stuart A. Bronstein wrote:
So... even though I have not seen the BOE position on Whole
Foods, I'm guessing that we have a food market that fails
the 80/80 test, that does have tables and utensils on the
premises, sells food for consumption both on and off the
premises that is packaged suitable for consumption.
That may be the argument. I imagine it will be difficult to
prove that more than 80% of gross sales are served for
consumpion on the premises.
You misinterpreted the code.
|
[snip]
| Quote: | Note the word "suitable." The store does not have to
actually provide a place for consumption. That's why one
has to look to the regulations for an explanation.
|
I didn't deal with the point specifically because it's
irrelevant. In this case the retailer does provide
facilities for eating on the premises.
On the other hand, if no facilities are provided on the
seller's premises, I don't see how any form of food could be
"suitable" for consumption on the premises. Under your
interpretation any raw fruit or vegetable and anything that
doesn't have to be cooked for health purposes is "suitable"
for consumption on the premises, even though there are no
facilities.
| Quote: | What it means is this: If you pass the 80/80 test and sell
a half gallon of milk, it is not taxed. If you sell milk in
half-pint containers, then that milk is taxed because it is
suitable for consumption on the premises.
|
Right. If the test is satisfied. It seems to me that will
be the big burden in the case.
| Quote: | I just returned from the Whole Foods store in Glendale,
where I purchased cold food items from the deli for
consumption tonight when I watch the Yankees beat the Angels
again. Each item purchased was packaged in a form suitable
for consumption on the premises. The check out clerk asked
me whether or not I was going to eat the items there or take
them home. I said "home" and there was no sales tax.
|
So they're presuming that they don't satisfy the 80% test.
Stu
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >>
|
|
A.G. Kalman
Guest
|
| Posted:
Tue Oct 11, 2005 8:00 am Post subject:
Re: California Sales Tax and Grocery Stores |
|
|
Stuart A. Bronstein wrote:
| Quote: | glendale202-taxes@yahoo.com (A.G. Kalman) wrote:
Stuart A. Bronstein wrote:
So... even though I have not seen the BOE position on Whole
Foods, I'm guessing that we have a food market that fails
the 80/80 test, that does have tables and utensils on the
premises, sells food for consumption both on and off the
premises that is packaged suitable for consumption.
That may be the argument. I imagine it will be difficult to
prove that more than 80% of gross sales are served for
consumpion on the premises.
You misinterpreted the code.
[snip]
Note the word "suitable." The store does not have to
actually provide a place for consumption. That's why one
has to look to the regulations for an explanation.
I didn't deal with the point specifically because it's
irrelevant. In this case the retailer does provide
facilities for eating on the premises.
On the other hand, if no facilities are provided on the
seller's premises, I don't see how any form of food could be
"suitable" for consumption on the premises. Under your
interpretation any raw fruit or vegetable and anything that
doesn't have to be cooked for health purposes is "suitable"
for consumption on the premises, even though there are no
facilities.
|
The issue is not raw fruit and vegetables. I am discussing
the sale of cold food sold as a take out order (reg.
1603(c)). If the retailer passes the 80/80 test then cold
food sold as take out is taxable if it is "suitable" for
consumption. See my example on the milk.
If the 80/80 test is failed, then cold food sold for take
out is not taxed. It is only taxed if it is to be consumed
on the premises.
Remember, the 80/80 test requires >80% sales of food AND
| Quote: | 80% is taxable because the entity is either a restaurant,
hotel, boarding house, soda fountain or a similar |
establishment; or is a drive-in; or it sells hot-prepared
food; or it sells the food for consumption on the premises.
--
Alan
http://taxtopics.net
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
|
FAQ
Memberlist
Register
Profile
Log in to check your private messages
Log in