Texas Sales Tax

Business By Terri_A Updated 15 Jun 2007 , 4:20am by alimonkey

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Terri_A Posted 29 May 2007 , 4:53pm
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Okay...I was under the impression that you do NOT charge sales tax on a cake in Texas, but I'm finding conflicting info....anyone have a correct answer and a source I can check out?

Terri _A
Sugar High Cakes....Sugar and Spice and Everything Iced!

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jewelykaye Posted 29 May 2007 , 5:12pm
post #2 of 27

Most of the items we make are NOT taxable however, some are.

Visit this link, this is the link Patrick at the Sales Tax office told me to take a look at:

http://window.state.tx.us/taxi.....4_115.html

I told him it still didn't make complete sense, so he explained it to me (he was very nice). Their phone number is 1-800-252-5555, ask to speak with Patrick.

Basically, anything that is "ready to eat" as in we are giving them a fork and they are sitting down in our store to eat it is taxable. The other thing that is taxable are wedding cakes and groom's cakes if you are delivering them and setting them up. Because you are setting everything up for them to come eat. I am not able to reiterate the information as well as Patrick did but that's the basic gist of it.

To apply for the Sales Tax Permit (which is free) go to:
www.window.state.tx.us

I hope this helps you! icon_biggrin.gif

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jewelykaye Posted 29 May 2007 , 5:14pm
post #3 of 27

Where in Houston are you?

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kelleym Posted 29 May 2007 , 5:31pm
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Here are some of my links. It is my understanding from reading the questions and answers and the Texas Administrative code, that ALL whole cakes are not taxable. If you do not provide anyone to actually serve the cake, it is not taxed. I do not tax anything I sell.

http://aixtcp.cpa.state.tx.us/opendocs/open20/200002045l.html
http://info.sos.state.tx.us/pls/pub/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=34&pt=1&ch=3&rl=293

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jarjam1026 Posted 29 May 2007 , 5:31pm
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Terri, do you pay sales tax? I think if you just sell out of your home every once in a while, i wouldn't.
.

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jewelykaye Posted 29 May 2007 , 5:53pm
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Lol...now I'm confused...seems I might've been misinformed. icon_surprised.gif

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Silver044 Posted 29 May 2007 , 7:38pm
post #7 of 27

save

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Terri_A Posted 29 May 2007 , 10:45pm
post #8 of 27

Thanks for the responses - Kellye - I knew you would have an answer for me!

For whomever asked - I'm in Central Houston, not far from the Heights.

I'm not currently licensed - in the process of getting that done, but business is picking up tremendously lately, so I'm trying to do all my due diligence.

Thanks for the links, too everyone!

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sweetcakes Posted 30 May 2007 , 12:21am
post #9 of 27

the actual cake is not taxable but if you charge a delivery fee, that is, if you charge a rental fee on a cake stand, that is, if you sell one cupcake or an individual slice of cake those are taxable. I was told to price the cake with everything inclusive, delivery, set-up, rental, cutting fee etc, so they are not itemized, that way no tax has to be collected.

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jewelykaye Posted 30 May 2007 , 12:02pm
post #10 of 27
Quote:
Originally Posted by sweetcakes

the actual cake is not taxable but if you charge a delivery fee, that is, if you charge a rental fee on a cake stand, that is, if you sell one cupcake or an individual slice of cake those are taxable. I was told to price the cake with everything inclusive, delivery, set-up, rental, cutting fee etc, so they are not itemized, that way no tax has to be collected.




Regarding the one cupcake and the slice of cake. The man from the Sales Tax Department told me those are not taxable unless they are going to sit down and eat it in your store.

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JILBRY Posted 30 May 2007 , 3:43pm
post #11 of 27

jewelykaye
Where are you in Houston?

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jewelykaye Posted 30 May 2007 , 3:48pm
post #12 of 27

Cypress and you?

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JILBRY Posted 30 May 2007 , 3:54pm
post #13 of 27

Jones Rd. and West. In Steeplechases. We are really close. Do you have any cake clubs or meetings you go to? Would love to talk to cake people about cake. If you dont do it you don't understand sometimes.

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jewelykaye Posted 30 May 2007 , 4:00pm
post #14 of 27

Lol, I'm near Jones and Grant! Yeah actually I'm going to be attending a cake club meeting on the 14th of June. It's called the Flour Power Cake Club. I went when it first started up but I've been busy and haven't been back since. I'll get you the information and PM it to you!

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JILBRY Posted 30 May 2007 , 4:54pm
post #15 of 27

Thanks.

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mysticamethyst Posted 31 May 2007 , 1:54pm
post #16 of 27

I am sorry to just jump in here, but I am in Copperfield, West and Hwy 6. It is so nice to see others here, are there any cake clubs in the area? I would love to go to a meeting. Have been thinking of going to sugarland but that is such a drive at $3 a gallon. Anyway nice to "meet" yall.

Tammy

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jewelykaye Posted 31 May 2007 , 3:03pm
post #17 of 27

Your "jump in" is completely welcome! Yes there is a cake club here on the Northside. The club is called the Flour Power Cake Club. It meets every second thursday of every month.

The next meeting is June 14th from 7-9 at Kroger's on champion forest drive and cypresswood. Last month we met downstairs behind the deli because it was too hot upstairs. We will be there somewhere in the building.

http://groups.yahoo.com/group/Flour_Power/

Here is the link to the group on yahoo, which has different messages on there. They do demos at each meeting. This one they are going to do a cupcake bouqet among other things.

Please feel free to just show up to the meeting or you can join the Yahoo Group and introduce yourself there.

It's always nice to meet other cake folk from the northern part of Houston!

Hope to see you soon,
Julie

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EverlastingSweets Posted 31 May 2007 , 8:36pm
post #18 of 27

hi Julie! Hi Tammy!
Tammy we are so near each other!! I'm in Jersey Village off of 290 and the Beltway. Try to come to the next meeting at Flour Power!
icon_biggrin.gif

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jewelykaye Posted 31 May 2007 , 8:54pm
post #19 of 27

Hiya Sonya!!!

Us soon-to-be Flour Power girls are taking over this post! Go North Houston!!!

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barbara-ann Posted 3 Jun 2007 , 5:01pm
post #20 of 27

Great, finally a cake club that doesn't meet in the morning when I'm at work! I'm off of Barker-Cypress and W. Little York.
I would love to come to the meetings!

Barbara

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EverlastingSweets Posted 3 Jun 2007 , 7:37pm
post #21 of 27

well come on Barb! I was the same way because I think the Houston Cake club meets on Mondays at 9 am and the one in sugarland is the same during the day.
The next meeting is the 14th at 7 p.m PM me if you need more info. Its in the Champions area.
Sonja

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jewelykaye Posted 4 Jun 2007 , 1:56am
post #22 of 27

Yes please come to the meeting! The more the merrier!!!

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ashianadotkom Posted 4 Jun 2007 , 4:31am
post #23 of 27

I am so happy to see you guys talking about flour power cake club(don't you love the name ..my friend and i came up with it)
We love for all of you to join or visit us the next meeting....

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Cookie4 Posted 14 Jun 2007 , 4:53am
post #24 of 27

So glad you all are coming to the Flour Power Cake Club meeting tomorrow evening. We should have three demo's tomorrow, (1) a fruit topped cake, (2) white cake tastings, and (3) cupcake bouquets.

This club has been in existence for over a year and is starting to gain momentum. As previously stated, we do demos at each meeting and then just talk, talk, talk and share what we've learned. We encourage anyone that is interested in cake decorating and the sugar arts to come and join us. Our membes range from experienced cake decorators/designers to the novice and many Wilton instructors. WE ARE PASSIONATE ABOUT CAKE DECORATING!

If you would like to be a demonstrator you are most welcome to do that too. We hope to see you tomorrow!

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mysticamethyst Posted 14 Jun 2007 , 10:35pm
post #25 of 27

I am sorry ya'll it looks like I won't be making it this to this months meeting. Husband isnt' home from work yet and with traffic there is no way I will make it on time. I do so want to try and come to next months, so please post time's. Sorry for the short notice; maybe next month.

Tammy

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aggiecakes Posted 15 Jun 2007 , 4:12am
post #26 of 27

I am so glad I read this post. I just read it a day too late - I've missed this month's meeting, but I will try to make next month's meeting. I am so glad there is something on the north side of town. I was really hating the thought of having to drive down to the south side. I am in the Spring/Woodlands area.

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alimonkey Posted 15 Jun 2007 , 4:20am
post #27 of 27

I was glad to see this post. Since I'm going to be a business now, I was wondering about the tax ramifications. Glad to know I don't really need to worry about it yet!

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