Sale Tax in California When Eating Out

[one...two...tree 2,762]

I didn't know this until now, but when the cashier asks if you are eating in or taking it to-go, they are basically asking you whether you want to be taxed or not. The 8.5% CA State sales tax only applies if you buy prepared food if you eat it in the restaurant. It's crazy, but if you're thinking about it, it can easily at up in a month's time, especially if you frequent places like coffee or local sandwich shops.

Here's an interesting thread on it:

http://patterico.com/2007/06/21/tax-tip-of...-in-california/

.....

I've been thinking about the tax reform proposals that both candidates Gravel and Huckabee have been talking about which are based on a consumption tax. I'm thinking if there will be any exclusions on certain items, I can see a potential can of worms with this.

[AnaAndDaniel 0]

i've forgotten about this. i remeber when it first came out. a baskin and robbins shop had a hand written notice to wit: if you order to go and a happen to change your mind and eat inside the premises, it is ok with us.

I will try it next time we go to pollo loco.

Daniel

:energetic:

[one...two...tree 2,762]

i've forgotten about this. i remeber when it first came out. a baskin and robbins shop had a hand written notice to wit: if you order to go and a happen to change your mind and eat inside the premises, it is ok with us.

I will try it next time we go to pollo loco.

Daniel

:energetic:

For a $5.99 sandwich at Subway for example, the tax could add another 45 cents which easily adds up in a month's time.

[Jenn! 918]

The fair tax proposal includes a "prebate" which would reimburse taxpayers for the sales tax on essential items (i.e. food, shelter, clothing, medicine) at the poverty level. As I understand it, it would mitigate the regressive nature of a consumption only tax.

Edited September 19, 2007 by Jenn!

[no name 1]

It happens in other states too.

[Lansbury 19]

Come live in Oregon no sales tax, and certainly if we go to Washington and shop there for any reason if we show our Oregon driving licence we don't pay Washington sales tax. No sure if there is a similar arrangement in other States.

[one...two...tree 2,762]

The fair tax proposal includes a "prebate" which would reimburse taxpayers for the sales tax on essential items (i.e. food, shelter, clothing, medicine) at the poverty level. As I understand it, it would mitigate the regressive nature of a consumption only tax.

There was a discussion yesterday morning on my local radio station about the Fair Tax proposal. One of the panelists stated that it's a pipe dream to think that politicians and special interests wouldn't open a pandora's box with exclusions. For example, should a mortgage payment be taxable? How about rent? What about retirees who have no incomes beyone their retirement and social security?

I think it's a great to think about tax reform but after hearing yesterday's discussion, the complication of our current income tax system would be merely transfered to this tax.

Also, think about the prebate. Imagine that it is set at 10 g's per person, so a family of 4, would be at zero taxable income at $40,000. That sounds great until you are talking about a refund check of about $2,300 per person, which means that family of 4 is going to be having to wait each year to get $9,200 back.

I think it will open up problems with regard to merchants because they will now have the responsibility of collecting a very large tax on their sales (est. at 23 percent). There is a potential for a lot of fraud.

Edited September 19, 2007 by Mister Fancypants

[Jasman0717 9]

i've forgotten about this. i remeber when it first came out. a baskin and robbins shop had a hand written notice to wit: if you order to go and a happen to change your mind and eat inside the premises, it is ok with us.

I will try it next time we go to pollo loco.

Daniel

:energetic:

Wonder if Benihanas will let you do that

[Nancy2015 2]

Is it 8.5% where you are? It's 8.25% here in our boonies. Not that it makes any difference.

We always order our food to go, so it hasn't been that big of an issue...

[one...two...tree 2,762]

Is it 8.5% where you are? It's 8.25% here in our boonies. Not that it makes any difference.

We always order our food to go, so it hasn't been that big of an issue...

Ah, it's probably 8.25% ...I wasn't sure. It's so crazy because I order the same sandwich from Togo's for $5.99 - and some times I'm charged about $6.48.

[almaty 19]

sales tax is unfair tax..,,and California suxs

[one...two...tree 2,762]

sales tax is unfair tax..,,and California suxs

I don't know, brother...I can see the potential good in taxing consumption vs. taxing productivity, provided there'd a prebate for basic necessities.

Also, there is the possibility of the sales tax being progressive - someone buying a yacht should pay a higher percentage than someone buying a car, for example.

We need to find a better tax system than the convoluted one we have now.

[almaty 19]

sales tax is unfair tax..,,and California suxs

I don't know, brother...I can see the potential good in taxing consumption vs. taxing productivity, provided there'd a prebate for basic necessities.

Also, there is the possibility of the sales tax being progressive - someone buying a yacht should pay a higher percentage than someone buying a car, for example.

We need to find a better tax system than the convoluted one we have now.

i agree..the system needs an overhaul....

[Hilarious Clinton 452]

Is it 8.5% where you are? It's 8.25% here in our boonies. Not that it makes any difference.

We always order our food to go, so it hasn't been that big of an issue...

Ah, it's probably 8.25% ...I wasn't sure. It's so crazy because I order the same sandwich from Togo's for $5.99 - and some times I'm charged about $6.48.

Depends on what the local sales tax is.

California has a statewide sales tax of 7.25%, and local supplementary taxes are allowed up to 8.75%. Sales and use taxes in the state of California are collected by the State Board of Equalization, the only publicly elected tax commission in the United States.

http://en.wikipedia.org/wiki/Sales_taxes_i...ates#California

[mawilson 2,133]

i agree..the system needs an overhaul....

No, it doesn't. I'll translate "overhaul" for you from Congress-speak to English:

"tax system overhaul" = "stick it to the tax payer"