Pre-Packaged Salads Are Subject to Tax in Massachusetts

Monday, February 20th, 2012

 
 
Share
Link
Massachusetts
General
The Massachusetts Department of Revenue (DOR) recently issued a letter ruling discussing the taxability of pre-packaged salads sold in grocery stores (Mass. Ltr. Rul. No. 12-2 (Dept. of Revenue Feb. 8, 2012)). Massachusetts generally exempts sales of food products from sales tax. But, in contrast, Massachusetts taxes "meals" sold by restaurants. "Meals" are defined as "any food or beverages or both, prepared for human consumption and provided by a restaurant, where the food or beverage is intended for consumption on or off the restaurant premises, and includes food or beverages sold on a 'take out' or 'to go' basis, whether or not they are packaged or wrapped and whether or not they are taken from the premises of the restaurant." While grocery stores are not typically classified as restaurants, the DOR determined that "salads sold as a unit in a manner reasonably and commonly considered a meal such as on a plate or otherwise packaged as a meal," will be subject to tax as a "meal." In reaching this conclusion, the DOR reasoned that the pre-packaged salads constitute a "combination plate sold as a unit reasonably and commonly considered a meal."

About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Nevada Exempts Certain Medical Equipment

Monday, June 17th, 2019 -Effective July 1, 2019, Nevada will exempt durable medical equipment, oxygen delivery equipment, and mobility ...

Participatory Sports are Taxable in New York

Friday, June 14th, 2019 -The New York Division of Tax Appeals recently denied a refund claim made by an instructor-led indoor spin clas...

Marketplace Facilitators to Collect Tax in Vermont

Thursday, June 13th, 2019 -Vermont recently passed a bill requiring marketplace facilitators to collect and remit sales tax on retail sal...

Agricultural Rotary Cutter Taxable in Arkansas

Wednesday, June 5th, 2019 -The Arkansas Department of Finance and Administration (DFA) recently determined that a rotary cutter used in t...

Wholesale Exemption Applies to Meals Purchased by...

Monday, June 3rd, 2019 -The Colorado Supreme Court recently ruled that a food service vendor made exempt wholesale sales of food and f...

Specialized Tools to Install Prosthetic Devices are...

Friday, May 31st, 2019 -The Wisconsin Tax Appeals Commission recently ruled that specialized tool kits used to install prosthetic devi...