Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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550.0000 TAXABLE SALES OF FOOD PRODUCTS—Regulation 1603

Annotation 550.0345


550.0345 80/80 Rule—Bulk Food. Bulk sales of individual items—e.g., a bag of doughnuts, muffins, or croissants—are in a form suitable for consumption at the facilities of the retailer. Thus, such sales are considered taxable food sales in computing the taxable percentage of food products in determining if the "80/80 rule" applies.

On the other hand, the sale of sandwich fillings on a to-go basis are sales of food products not suitable for consumption at the retailer's facilities. Such sales are considered not taxable in determining if the "80/80" rule applies to the taxpayer operations. 4/15/94.