SALT Report 3476 – Artisan bakery items sold with eating utensils are subject to the 4.75% general state tax, while artisan bakery items sold without eating utensils are only subject to the 2% local tax rate.
Eating utensils include:
“An “artisan bakery” is a bakery that meets all of the following requirements:
- It derives over eighty percent (80%) of its gross receipts from the sale of bakery items.
- Its annual gross receipts, combined with the gross receipts of all related persons as defined in [Section 267(b) or 707(b) of the Internal Revenue Code], do not exceed one million eight hundred thousand dollars ($1,800,000).”
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