Nevada – Taxability of Food for Immediate Consumption

SALT Report 1635 – The Nevada Department of Taxation’s latest issue of Tax Notes discusses the taxability of food for immediate consumption.  In Nevada, food for human consumption, such as grocery items, are generally exempt from sales and use tax.
However, the sale of prepared food intended for immediate consumption is taxable under NRS 360B.460 and NAC 372.605. Prepared food intended for immediate consumption is defined as:
  • Food sold in a heated state or heated by the seller,
  • Two or more food ingredients mixed or combined by the seller for sale as a single item, and
  • Food sold with eating utensils provided by the seller, including plates, knives, forks, spoons, glasses, cups, napkins, or straws
Prepared food sold at retail need only meet one of the 3 criteria listed above to be considered prepared food intended for immediate consumption. For example:
A retailer sells hot coffee to a customer. This is a taxable transaction as the coffee is sold in a heated state making it intended for immediate consumption.
A retailer sells sandwiches made to order. This is a taxable transaction as the sandwich is made of two or more food items mixed or combined by the seller for sale as a single item making it a prepared food intended for immediate consumption.
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