Soooooo......

[RStar]

That is so strange. If it bounced back and forth between two figures, I could understand. But four? Maybe the tax is being charged on the full retail value, and each sandwich is a different price that is on the daily $5 foot long special. I don't even understand why the tax should be different for hot or cold, take away or eaten on premises. Tax laws are funky.

[Ghoulish Delight]

Originally Posted by RStar

That is so strange. If it bounced back and forth between two figures, I could understand. But four? Maybe the tax is being charged on the full retail value, and each sandwich is a different price that is on the daily $5 foot long special. I don't even understand why the tax should be different for hot or cold, take away or eaten on premises. Tax laws are funky.

It's because a law as passed that tax cannot be charged for unprepared food (and baked goods). The premise being, people should be able to, you know, eat and survive without taxation. So in California, there's no tax on your groceries. And it was decided that stacking a bunch of groceries on bread doesn't count as preparing. Therefore a cold sandwich falls under that category. But a heated sandwich does not. And ordering to eat in rather than to-go makes you subject to tax because now you're not just buying groceries, you're taking advantage of a service.

At 9% tax, the $9.31 figure is probably what it's "supposed" to be. That works out the the correct 9% tax on a $3.95 hot sandwich. But I'm still betting that there are different ways the items can get rung up (as separate items, some sort of combo, a lower price something or other + a fee...) that end up with some slightly different value being used to calculate the tax.

[RStar]

Originally Posted by Ghoulish Delight

It's because a law as passed that tax cannot be charged for unprepared food (and baked goods). The premise being, people should be able to, you know, eat and survive without taxation. So in California, there's no tax on your groceries. And it was decided that stacking a bunch of groceries on bread doesn't count as preparing. Therefore a cold sandwich falls under that category. But a heated sandwich does not. And ordering to eat in rather than to-go makes you subject to tax because now you're not just buying groceries, you're taking advantage of a service.

Thank you, GD. That does make since. However, I would think any establishment preparing food would be considered "prepared food" and would be taxed accordingly- hot or cold. But frankly, I feel we are over taxed in CA so any time there is no tax I'm fine with it!