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Grocers - How Do Wisconsin Sales and Use Taxes Affect Your Operations?

since it is sold heated. Although the ba- gel meets the exception for bakery items, it is prepared food since it is sold heated.

(c) Two or more food ingredients mixed or combined by a retailer for sale as a single item, sold unheated, and sold by volume or weight.

Note: Examples 1-7, below, assume that it is not the retailer's customary practice to physically give or hand napkins or oth- er utensils to the customer with the food product; plates, bowls, glasses, or cups are not necessary to receive the food product; and the retailer's NAICS code is not subsector 311 or 3118.

Example 1: Grocery Store prepares po- tato salad for sale to its customers. Grocery Store boils the potatoes cuts the potatoes up, and combines the pota- toes with various other ingredients to make potato salad. At the customer's request, Grocery Store places a certain amount of potato salad into a container. When the customer is satisfied with the amount of potato salad in the container, Grocery Store weighs the container and prints out a label that contains the weight and the price. The price is equal to $3 per pound. Although the potatoes were previously heated by the retailer when the potato salad was being made, the potato salad is not prepared food since it is sold unheated by weight.

Example 2: Same as Example 1, except that Grocery Store prepackages the con- tainers of the potato salad rather than having the customer select the amount she wants. The potato salad is not pre- pared food since it is sold unheated by weight.

Example 3: Same as Example 1, except that customer tells Grocery Store which size container of potato salad she wants.

Grocery Store charges $1.79 for a ½ pint size container, $2.89 for a pint size container, and $5.49 for a quart size container. The potato salad is not pre- pared food since it is sold unheated by volume.

Example 4: Same as Example 3, except that Grocery Store prepackages the con- tainers of the potato salad into the 1/2 pint, pint, and quart size containers as it is made, rather than upon the cus- tomer's request. The potato salad is not prepared food since it is sold unheated by volume.

Example 5: Ice Cream Store makes its own ice cream by mixing and combin- ing the ingredients. Ice Cream Store charges $2.50 for a small container and $5.50 for a large container. Each con- tainer is filled to the top. The actual weight or volume associated with each size container is not identified. The ice cream is prepared food. It is not sold by weight or volume.

Example 6: Same as Example 5, except that Ice Cream Store indicates that the small container is a pint and the large container is a quart. The ice cream is not prepared food since it is sold by volume.

Example 7: Store makes and sells ice cream cakes, which are not primarily bakery items. Store charges $6.99 for a 4-inch ice cream cake, $12.99 for a 9- inch ice cream cake, and $16.99 for a 12-inch ice cream cake. The ice cream cakes are prepared food. They are not sold by weight or volume. Instead, they are sold by diameter.

  • 3.

    Two or more food ingredients mixed or com- bined by the retailer for sale as a single item, except if any of the following apply:

    • (a)

      The retailer’s primary classification in

the North American Industry Classifica-

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