SALT Report 3486 – A New Jersey taxpayer requested a letter ruling to determine the taxability of sushi which is purchased from an outside seller who also prepares and packages the sushi. The taxpayer does not provide an eating area and does not sell the packaged sushi with utensils. While the sale of food and food ingredients purchased for human consumption are not subject to sales tax, sales of “prepared food” are subject to tax. To qualify as a prepared food the food must be sold in a heated state, be the result of two or more combined ingredients, or be sold with eating utensils. Since the prepackaged sushi is not heated, the taxpayer does not combine two or more ingredients, and utensils are not sold with the sushi, sales of the sushi are not subject to sales tax.
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