Toasted sandwiches at Subway get taxed o_O

Syringer

Lifer
Aug 2, 2001
19,333
2
71
So at this San Francisco Subway that I go to, there's a notice that there's a sales tax if I opt to get my sandwich toasted, "as by California law".

Why is this? Is it because it's "prepared" and "cooked" that the tax is added on? If so, wouldn't this apply to the chicken or meatball sandwiches, which are just as much "prepared"?
 

ElFenix

Elite Member
Super Moderator
Mar 20, 2000
102,414
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you don't pay sales tax on regular subway sammiches? i guess maybe they fall under a grocery exemption?
 

mattocs

Platinum Member
Jan 25, 2005
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In Pennsylvania they tax all prepared foods. In Ohio they don't tax food you take out from restaurants...but if you eat it there they do. Its weird.
 
Mar 11, 2004
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This was discussed before. I forget what the reasoning for it was, but yeah, some strange tax law forces them to tax toasted subs. Several people said they get taxed regardless, even though they're in the same state, so it seems to be discretionary.
 

giantpinkbunnyhead

Diamond Member
Dec 7, 2005
3,251
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CA tax laws are screwy. In 1994 I worked at a Subway in CA and at the time, we were to tax all dine-in orders but not the to-go orders. :confused:
 

Injury

Lifer
Jul 19, 2004
13,066
2
0
Originally posted by: giantpinkbunnyhead
CA tax laws are screwy. In 1994 I worked at a Subway in CA and at the time, we were to tax all dine-in orders but not the to-go orders. :confused:

That's how Ohio is. There is a tax on all dine-in orders and if for some god-forsaken reason an officer sees it and feels like wasting an hour of many people's lives, they can charge you with tax evasion if you order your food to-go then sit down and consume it.

There is also a tax on carbonated drinks, so if you got to a restaurant and order a soda there is sales tax. If you order and iced tea.. no sales tax. WTF.
 

sniperruff

Lifer
Apr 17, 2002
11,644
2
0
In NY hot food is taxed. If you buy a refrigerated fried chicken it's not taxed. If you buy a hot fried chicken it's taxed.
 

Jawo

Diamond Member
Jun 15, 2005
4,125
0
0
In Virginia groceries are taxed at 2%, while prepared foods are at the regular rate of 5%. This makes some sense...a watermelon is a grocery item, but cut it up, and it becomes a prepared good!
 

I Saw OJ

Diamond Member
Dec 13, 2004
4,923
2
76
Wierd, I thought all prepared food was taxed. I'll have to take note of it next time im in subway,
 

GeekDrew

Diamond Member
Jun 7, 2000
9,100
13
81
Originally posted by: Injury
Originally posted by: giantpinkbunnyhead
CA tax laws are screwy. In 1994 I worked at a Subway in CA and at the time, we were to tax all dine-in orders but not the to-go orders. :confused:

That's how Ohio is. There is a tax on all dine-in orders and if for some god-forsaken reason an officer sees it and feels like wasting an hour of many people's lives, they can charge you with tax evasion if you order your food to-go then sit down and consume it.

There is also a tax on carbonated drinks, so if you got to a restaurant and order a soda there is sales tax. If you order and iced tea.. no sales tax. WTF.

I think that the carbonated drink tax is just stupid. I don't particularly understand their logic in taxing eat-in meals vs to-go, but I can't help but think that one is more tolerable than the carbonated beverage tax.

/me rambles
 

gsethi

Diamond Member
Feb 28, 2002
3,457
5
81
Its the CA State Tax Laws. Sandwiches that are heated have to be taxed. Cold sandwiches are not taxed. Carbonated beverages are taxed while Water/milk/juice etc. are not taxed. Eat-in Orders(whether cold or hot as taxed, no matter what).

Its a big mess up and Makes my life harder when I have to program POS systems at my stores. I think recently there was a change to the CA state tax laws again where a COLD sandwich that was toasted is exempted from tax (I am not sure as I havnt read the complete revised law guide yet...will have to do it something this week :( )...For ex: before, if you take a turkey sandwich and get it toasted, it should be taxed. I think that with the revised tax law, if you get the turkey sandwich and get the bread toasted, then there is no tax BUT if the turkey meat is toasted, it should be taxed (I think thats what it means but again, i have to read it carefully). If thats the case...I will be WTF @ the lawmakers.

seriously...who makes these laws. Just make it all taxed to make our lives simpler.

EDIT: Chicken, steak, meatball sandwiches have to be taxed (even if not toasted) b/c the meat is heated before being served.

edit2;
(e) HOT PREPARED FOOD PRODUCTS.
(1) GENERAL. Tax applies to all sales of hot prepared food products unless otherwise exempt. ?Hot prepared
food products? means those products, items, or components which have been prepared for sale in a heated condition
and which are sold at any temperature which is higher than the air temperature of the room or place where they are
sold. The mere heating of a food product constitutes preparation of a hot prepared food product, e.g., grilling a
sandwich, dipping a sandwich bun in hot gravy, using infra-red lights, steam tables, etc. If the sale is intended to be of
a hot food product, such sale is of a hot food product regardless of cooling which incidentally occurs. For example,
the sale of a toasted sandwich intended to be in a heated condition when sold, such as a fried ham sandwich on
toast, is a sale of a hot prepared food product even though it may have cooled due to delay. On the other hand, the
sale of a toasted sandwich which is not intended to be in a heated condition when sold, such as a cold tuna sandwich
on toast, is not a sale of a hot prepared food product. When a single price has been established for a combination of
hot and cold food items, such as a meal or dinner which includes cold components or side items, tax applies to the
entire established price regardless of itemization on the sales check. The inclusion of any hot food product in an
otherwise cold combination of food products sold for a single established price, results in the tax applying to the entire
established price, e.g., hot coffee served with a meal consisting of cold food products, when the coffee is included in
the established price of the meal. If a single price for the combination of hot and cold food items is listed on a menu,
Regulation 1603. (Contd.)
wall sign or is otherwise advertised, a single price has been established. Except as otherwise provided in (b), (c),
or (f) of this regulation, or in Regulation 1574, tax does not apply to the sale for a separate price of bakery goo
beverages classed as food products, or cold or frozen food products. Hot bakery goods and hot beverages such
coffee are hot prepared food products but their sale for a separate price is exempt unless taxable as provided in (
(c), (d) or (f) of this regulation, or in Regulation 1574. Tax does apply if a hot beverage and a bakery product or c
food product are sold as a combination for a single price. Hot soup, bouillon, or consommé is a hot prepared fo
product, which is not a beverage.

Thats the new law now. So Toasted Turkey is not supposed to be taxed since turkey was not intended to be sold as hot, hence it is NOT a hod prepared food product even though it was toasted. Uptil last month, Toasted turkey was supposed to be taxed.

Also...Coffee is not supposed to be taxed when sold separately but is supposed to be taxed when sold with a sandwich (either HOT or COLD) ?? WTF...Uptil last month, coffee was never supposed to be tax .... ??? more confusion
 

AMCRambler

Diamond Member
Jan 23, 2001
7,701
26
91
New York State sales tax:

Unless specifically exempted or excluded, sales tax is imposed on:
? retail sales of tangible personal property;
? sales of specifically enumerated services;
? sales of gas, electricity, refrigeration and steam;
? sales of gas, electric, refrigeration and steam service;
? sales of telephony and telegraphy;
? sales of telephone and telegraph service (including
telephone answering services, facsimile transmission
services, and cellular telephone services);
? sales of food and drink for on premises consumption,
for example, when sold by restaurants and taverns;
? sales of food and drink when sold by caterers;
? sales of heated food and sandwiches;
? rent for occupancy of hotel or motel rooms (including
bed and breakfasts, boarding houses, guest houses, etc);
? admission charges to places of amusement, other than
live dramatic or musical arts performances, motion
picture theaters, participatory sporting events, live
circus performances, or charges which are taxed under
any other law of this State for admissions to race tracks,
boxing, sparring or wrestling matches or exhibitions;
? dues, including initiation fees, paid to social or athletic
clubs when the dues are more than $10 per year; and
? charges of a roof garden, cabaret, or other similar place.

Edit:
So it looks like unless the food is to be eaten on the premises they aren't supposed to charge tax. Interesting. I notice they put sandwich in there for a caveat so they could stick it to the lunch places. Nice.

Here's a link to the full document I found this in.
 

Gibson486

Lifer
Aug 9, 2000
18,378
1
0
In MA, we have a MA meal Tax. Any meal that can be prepared for you daily is taxed. It is amazing how many people call it a sales tax. On those sales tax free days, people always go into resteraunts and claim that they do not owe tax.
 

MyNameIsDarth

Junior Member
Jan 14, 2007
18
0
66
Also in the category of wierd NY laws.

If you buy a plain bagel it is not taxed.

If you get cream cheese put on that plain bagel it is taxed.
 

Syringer

Lifer
Aug 2, 2001
19,333
2
71
Originally posted by: gsethi
Its the CA State Tax Laws. Sandwiches that are heated have to be taxed. Cold sandwiches are not taxed. Carbonated beverages are taxed while Water/milk/juice etc. are not taxed. Eat-in Orders(whether cold or hot as taxed, no matter what).

Its a big mess up and Makes my life harder when I have to program POS systems at my stores. I think recently there was a change to the CA state tax laws again where a COLD sandwich that was toasted is exempted from tax (I am not sure as I havnt read the complete revised law guide yet...will have to do it something this week :( )...For ex: before, if you take a turkey sandwich and get it toasted, it should be taxed. I think that with the revised tax law, if you get the turkey sandwich and get the bread toasted, then there is no tax BUT if the turkey meat is toasted, it should be taxed (I think thats what it means but again, i have to read it carefully). If thats the case...I will be WTF @ the lawmakers.

seriously...who makes these laws. Just make it all taxed to make our lives simpler.

EDIT: Chicken, steak, meatball sandwiches have to be taxed (even if not toasted) b/c the meat is heated before being served.

edit2;
(e) HOT PREPARED FOOD PRODUCTS.
(1) GENERAL. Tax applies to all sales of hot prepared food products unless otherwise exempt. ?Hot prepared
food products? means those products, items, or components which have been prepared for sale in a heated condition
and which are sold at any temperature which is higher than the air temperature of the room or place where they are
sold. The mere heating of a food product constitutes preparation of a hot prepared food product, e.g., grilling a
sandwich, dipping a sandwich bun in hot gravy, using infra-red lights, steam tables, etc. If the sale is intended to be of
a hot food product, such sale is of a hot food product regardless of cooling which incidentally occurs. For example,
the sale of a toasted sandwich intended to be in a heated condition when sold, such as a fried ham sandwich on
toast, is a sale of a hot prepared food product even though it may have cooled due to delay. On the other hand, the
sale of a toasted sandwich which is not intended to be in a heated condition when sold, such as a cold tuna sandwich
on toast, is not a sale of a hot prepared food product. When a single price has been established for a combination of
hot and cold food items, such as a meal or dinner which includes cold components or side items, tax applies to the
entire established price regardless of itemization on the sales check. The inclusion of any hot food product in an
otherwise cold combination of food products sold for a single established price, results in the tax applying to the entire
established price, e.g., hot coffee served with a meal consisting of cold food products, when the coffee is included in
the established price of the meal. If a single price for the combination of hot and cold food items is listed on a menu,
Regulation 1603. (Contd.)
wall sign or is otherwise advertised, a single price has been established. Except as otherwise provided in (b), (c),
or (f) of this regulation, or in Regulation 1574, tax does not apply to the sale for a separate price of bakery goo
beverages classed as food products, or cold or frozen food products. Hot bakery goods and hot beverages such
coffee are hot prepared food products but their sale for a separate price is exempt unless taxable as provided in (
(c), (d) or (f) of this regulation, or in Regulation 1574. Tax does apply if a hot beverage and a bakery product or c
food product are sold as a combination for a single price. Hot soup, bouillon, or consommé is a hot prepared fo
product, which is not a beverage.

Thats the new law now. So Toasted Turkey is not supposed to be taxed since turkey was not intended to be sold as hot, hence it is NOT a hod prepared food product even though it was toasted. Uptil last month, Toasted turkey was supposed to be taxed.

Also...Coffee is not supposed to be taxed when sold separately but is supposed to be taxed when sold with a sandwich (either HOT or COLD) ?? WTF...Uptil last month, coffee was never supposed to be tax .... ??? more confusion

*head asplodes*
 

nakedfrog

No Lifer
Apr 3, 2001
58,150
12,319
136
Originally posted by: MyNameIsDarth
Also in the category of wierd NY laws.

If you buy a plain bagel it is not taxed.

If you get cream cheese put on that plain bagel it is taxed.

What if you get cream cheese on the side and apply it yourself?
 

MyNameIsDarth

Junior Member
Jan 14, 2007
18
0
66
Originally posted by: nakedfrog
Originally posted by: MyNameIsDarth
Also in the category of wierd NY laws.

If you buy a plain bagel it is not taxed.

If you get cream cheese put on that plain bagel it is taxed.

What if you get cream cheese on the side and apply it yourself?

No tax, the store needs to "prepare" it to get taxed.