okay, sorry if this has already been covered but I should give a little background first. I have a job as the cake decorator in a small bakery and the owner just decided she wanted us to branch out into wedding cakes. She has no clue how much extra work and stress is involved in this...but that's a whole other story. Anyways, I worked as a wedding cake coordinator at my last job so I'm pretty much prepared as far as pricing and writing up contracts but I was wondering.....
Is the tax on the cake the same as the tax on non-edible items(plates and pillars)? For instance, I work in Chicago and the sales tax here is 11.25%. Do I use that tax for the cake?
I know this is a weird question but I don't want to charge someone $80 tax on an $800 cake and have them question me.
ugh!!! I could really use the help...thanks!!
Wedding cake is food. I figured it would be a food tax - which in most cases is less than non-food items.
I am pretty sure it varies by state. For example, in 2008 we were required to charge 7% for our cakes. 1/1/09 that changed to 2%. You have to keep an eye on things like that because they can change before you know it.
I would call your state dept of revenue. They are the ones who regulate and collect the taxes and they will know. Every state is different and it can get confusing.
The rate is 2.250%.
Here is link
Thank you so much! That really helped!
Yes, check with the state of Illinois. I'm in Michigan and I don't have to charge sales tax on cakes UNLESS I have tables and chairs and they are eating the cake my site.
Definatly call your state and see the requirements. Take names too..... as to who you talked to and the details. I got the run around on our rules in Mo. Took several calls to straighten it out.