Arizona – Updated Tax Exempt Food Publication

2/20/2013

SALT Report 2167 – The Arizona Department of Revenue updated a publication that explains the transaction privilege tax exemption for sales of food. Generally, most food items intended for human consumption are exempt from the state’s transaction privilege tax.  However, they must fall within the Department of Revenue’s guidelines that are provided in the publication to qualify for the exemption.

The exemption from tax does not include sales of the following items:

  • Food sold and intended for on premises consumption
  • Pet foods and supplies
  • Soaps, paper products or household supplies
  • Cosmetics and grooming aids
  • Alcoholic beverages
  • Tobacco products
  • Hot, cold, or frozen sandwiches
  • Vitamins, non-prescription medicines, and dietary supplements such as minerals and protein powders, as well as weight loss aids even if they have a nutritional or supplement label

The publication also discusses foods that are exempt and what is considered a qualified retailer.

For Further Information

Arizona Department of Revenue – Publication 575 Tax Exempt Food