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

tomer, and plates, glasses, bowls, or cups are not necessary to receive the items.

Example 2 - Potato Salad, Unheated Ham, Cheese, and Fruit Salad Sold as a Single Item: Deli prepares and sells a serving of potato salad, unheated ham, cheese, and fruit salad as a single serving size meal for $3.29. The unheated ham does not require further cooking by the consumer. Deli plac- es each of the items in a clam shell container for Customer. The sale of the sin- gle serving size meal is subject to Wisconsin sales tax since it is prepared food. The single serving size meal is pre- pared food since it is made up of two or more ingredients that are mixed or com- bined by the retailer for sale as a single item and it is not: (a) sold unheated by weight or volume, (b) a bakery item, or (c) only sliced, repackaged, or pasteurized by the retailer. In addition, it does not re- quire further cooking by the consumer to prevent food-borne illnesses.

Example 3 - Heated Chicken: Deli sells chickens roasted on a rotisserie. Customers purchase the roasted chickens by the pound while the chickens are still heated. The sale of a heated chicken is subject to Wisconsin sales tax since it is a prepared food. It meets the definition of prepared food be- cause it is sold heated.

Example 4 - Sales from Self-Service Salad Bar: Customer makes selections from Deli’s salad bar and puts them into a clam shell container made available by Deli to its customers. The clam shell container is nec- essary for Customer to receive the foods and food ingredients. The sale of the salad is subject to Wisconsin sales or use tax since it is the sale of prepared food. It meets the definition of prepared food be- cause plates, glasses, bowls, or cups are necessary for Customer to receive the food and the plates, glasses, bowls, or cups are made available by Deli.

Example 5 - Sales from Food Bar: Cus- tomer makes selections from Deli’s food bar and puts them into a container supplied by Deli. Deli’s customary practice when it sells these items is to not physically give or hand a napkin or other utensil to its cus- tomer. The items selected by Customer include heated meats, potatoes, vegetables, and soup. Customer also selects a sealed carton of cold milk. The sale of the heated items to Customer is subject to Wisconsin sales tax as the sale of prepared food. These items are prepared food because they are sold heated and also because a plate, bowl, or cup is necessary for Customer to receive them. The sale of the sealed carton of milk to Customer is not subject to Wisconsin sales or use tax since the milk is not pre- pared food. The sealed carton of cold milk is not prepared food because (a) the carton of milk is not sold heated, (b) Deli’s cus- tomary practice is not to hand a napkin, straw or other utensil to the purchaser of the carton of milk, and (c) cups are not nec- essary to receive the milk. Note: If the milk is sold from a dispenser and a cup is neces- sary for Customer to receive the milk, the sale of the milk is taxable as a sale of pre- pared food.

Example 6 - Sales of Sandwiches Made by Deli: Deli prepares and sells cold sand- wiches. The sandwiches are ready to eat when packaged and are sold for $3 each. The sandwiches prepared by Deli are pre- pared food because they are made up of two or more ingredients mixed or combined by the retailer (i.e., Deli) for sale as a single item and are not: (a) sold unheated by weight or volume, (b) a bakery item, and (c) only sliced, repackaged, or pasteurized by the retailer. In addition, the sandwiches do not contain eggs, fish, meat, or poultry or any food containing any of them in raw form that requires further cooking by the consumer to prevent food-borne illnesses.

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