This is the question that many states have been asking
lately.
Is take-and-bake pizza considered a prepared food or a
grocery item? Most states charge tax on food that's sold ready to eat, while
food that you must prepare at home is not taxed.
The question was initially raised by take-and-bake chain
Papa Murphy's, which has stores in several states, all with different laws when
it comes to taxing prepared vs. nonprepared foods. The company just wants a
solution that can be used across all of its stores.
The tax base on goods has shrunken dramatically since the
1960s, leaving many states searching for new and creative ways to tax services
and goods.
I asked around and got differing opinions on whether or not
take-and-bake pizzas should be taxed.
"Taxing pizza should be against the law. It's a no
win for pizzerias," --Tom Feltenstein, TomFeltenstein.com.
"We have prepared foods such as fully prepared (baked)
pizza served dine-in, take out or delivered, hamburgers, lunch at Long John
Silvers and dinner at Olive Garden, and yes even that fully cooked chicken you
can get at your local supermarket or Walmart which are normally taxed at some
rate we're all familiar with, then we have what I like to call "groceries."
These are uncooked food items such as cuts of beef, pork, chicken,
fish/seafood, fruits, vegetables, and unbaked/uncooked items such as frozen
pizzas, frozen meals, deli-pizza and take and bake pizza (I see no real
difference between a frozen pizza, take and bake pizza, deli-pizza, or a raw
pork chop). If the state, county or municipality has a different tax rate for
"groceries," any product fitting into that category, whether sold at
a supermarket or specialty store (Papa Murphy's, a free standing seafood shop
or a local butcher shop selling cuts of beef or pork) should be taxed as
such." --Tom "The Dough Doctor" Lehmann
"I hate to side with more taxes on anything, but in
this case it is probably best to have everything selling at the restaurant on
the same tax bracket. While I enjoy no taxes when available, I think that this
could create a mess for accounting and too many independents might get into
trouble if their accountant isn't sharp on this." --Jonathan Porter, owner of Chicago Pizza Tours
What's your opinion? Should take-and-bake pizzas be taxed
like groceries or prepared food items? Let me know in the comments below.
Yes, I think taxing take and bake is necessary to simplify things i do agree paying anymore taxes is down right uncalled for we are definitely taxed enough in this country to bad the government can't spend it correctly.
ReplyDeleteWow such a nice post but I'm looking forward for the post of international business marketing Keep it up!
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