You are exactly right. They should be charging 5% sales tax on the coffee sales and then once a week or once a month (depending on how much they collect) fill our a form (or do it online) and turn the $ over to the State. Its really not a big deal. I run a small business and do it.
It is a little more complicated for them, potentially. The state will compare their total take with what they're paying taxes on, and then they have to justify why cookies or canolis aren't packaged foods but coffee is. It draws fewer audits if everything you sell is exempt.
Taxing
Date: 2007-03-27 10:22 pm (UTC)You are exactly right. They should be charging 5% sales tax on the coffee sales and then once a week or once a month (depending on how much they collect) fill our a form (or do it online) and turn the $ over to the State. Its really not a big deal. I run a small business and do it.
Re: Taxing
Date: 2007-03-28 12:45 am (UTC)