Sellers of prepared food that make utensils available must calculate their percentage of prepared food sales.
Percentage of prepared food equals n/d
Numerator (n) represents prepared food
Denominator (d) represents all food sales
The numerator includes sales of the following prepared foods:
- Food sold in a heated state or heated by the seller, except bakery items.
Foods where the seller has combined two or more ingredients, except:
- bakery items
- food that is only cut, repackaged, or pasteurized by the seller
- food that contains eggs, fish, meat, or poultry in a raw or undercooked state requiring cooking to prevent food-borne illness
- food sold in an unheated state at a price that varies based on weight or volume
- Food items where a plate, bowl, glass or cup is necessary to receive the food.
The denominator includes all sales of food and food ingredients (including prepared foods), soft drinks, and dietary supplements.
d = percentage of prepared food
- If the seller of prepared food wants to segregate their food sales and not charge sales tax on food and food ingredients, they must make this calculation annually.
- Food items that are four or more servings are exempt from sales tax even if the retailer sells more than 75 percent prepared food. (Unless the seller provides utensils.)
- Nonfood items (i.e. tobacco, alcohol, medicines, hygiene items, block ice, dry ice, and ice in bags of greater than 10 lbs.) are not included in the calculation.
- For a definition of food and food ingredients please refer to WAC 458–20–244.