As states are in the hunt for revenue sources, some are looking to take-and-bake pizzas. The dilemma lies in how the pizzas are classified.
Is a take-and-bake pizza considered restaurant prepared food, subject to tax, or is it a grocery item and exempt from tax? There are 24 states, which follow the Streamlined Sales Tax Governing Board’s guidelines, split on taxing take-and-bake pizzas, according to USA Today.
Take-and-bake operations like Papa Murphy’s want a definitive answer, reports USA Today. With stores on nearly 40 states, the pizza chain adheres to varying rules.
What is the rule on taxing take-and-bake pizza in your state?