Tax on Ingredients?

[JONNYROTTEN]

I have 2 LHBS.
One said theres no tax on ingredients and never charged me tax for years. Another place Charged me tax.

Not talking about online no tax...local purchases

Seems like you should get charged tax. You get charged tax in the supermarket.

Its odd one charges and one doesnt

 

[lump42]

It would depend on whether they are classifying the ingredients as food stuff or not. Indiana, Missouri, and Kentucky don't have a take on 'essential' food items, but that is a grey area. A gallon of unsweet tea isn't taxed, but the gallon of lemonade is. Flour, bread, eggs, milk, meat, fruits, and vegetables are not taxed. I could see if they file their taxes that the grain, hops, and yeast is a food stuff, just like flour, sugar, and bakers yeast is.

All the homebrew ingredients I've purchased locally have been charged sales tax.

 

[bracconiere]

I have 2 LHBS.
One said theres no tax on ingredients and never charged me tax for years. Another place Charged me tax.

Not talking about online no tax...local purchases

Seems like you should get charged tax. You get charged tax in the supermarket.

Its odd one charges and one doesnt

i've noticed similar phenomenon....

 

[odie]

Some states, certain foods are not taxed. Probably Depends on how the LHBS is doing their taxes, inventory or bookkeeping. Each state has their own tax laws. Maybe one shop is not categorizing grains correctly on their records

 

[bracconiere]

i agree with odie, it could depend on, animal feed vs human food...

 

[Derp]

The liquor store where I used to buy my sacks of grain never charged tax because it was a foodstuff. They just closed down their homebrew operations, so I'll have to see what my LHBS (TX) does.

I wonder if full sacks and by-the-pound sales would differ? Or what if the grains are crushed or not crushed?

 

[Still Brewn]

Wow.... I have been brewing for 12 years and I never paid attention. We have no tax on food here and I have never looked to see if my brew shop charges taxes on any ingredients. I've been there 4 times since the beginning of the year. .... damn! I really need to pay attention.

 

[MaxStout]

No sales tax on most food in MN, but certain items are taxable, such as snacks, soft drinks, candy, prepared food, etc. We don't pay state sales tax on grain and hops, as those are considered "cereal" and "flavoring," respectively. Beer itself is taxable.

Interesting side-note: Fruit juice is considered a non-taxable grocery item if it contains at least 50% fruit juice, but if it's less than 50% fruit juice (i.e., so-called juice cocktail), it is taxable.

 

[odie]

I always look at total when shopping online for comparison. What’s MY total cost? I think my local shop charged tax on a sack I bought. Tractor supply didn’t charge tax on my chicken feed?

 

[C-Rider]

In Hawai`i you get taxed for EVERYTHING. The only thing free is going to the beach and breathing. LOL

 

[odie]

Just picked up some ingredients. Local guy is charging tax too. Doesn’t affect him but affects customers. Texas doesn’t tax food products

 

[IslandLizard]

Just picked up some ingredients. Local guy is charging tax too. Doesn’t affect him but affects customers. Texas doesn’t tax food products

Give him a call and ask?

 

[odie]

I did talk with him. It’s just easier for him to go with the flow.