Tax On Wedding Cake?

Business By drewitz Updated 24 Mar 2009 , 11:51pm by korkyo

drewitz Cake Central Cake Decorator Profile
drewitz Posted 19 Mar 2009 , 8:27pm
post #1 of 8

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!!

7 replies
ccr03 Cake Central Cake Decorator Profile
ccr03 Posted 19 Mar 2009 , 9:12pm
post #2 of 8

Wedding cake is food. I figured it would be a food tax - which in most cases is less than non-food items.

jammjenks Cake Central Cake Decorator Profile
jammjenks Posted 20 Mar 2009 , 1:32am
post #3 of 8

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.

classiccake Cake Central Cake Decorator Profile
classiccake Posted 20 Mar 2009 , 2:46am
post #4 of 8

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.

lisa78332 Cake Central Cake Decorator Profile
drewitz Cake Central Cake Decorator Profile
drewitz Posted 20 Mar 2009 , 3:42pm
post #6 of 8

Thank you so much! That really helped!

JenniferMI Cake Central Cake Decorator Profile
JenniferMI Posted 22 Mar 2009 , 5:01pm
post #7 of 8

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.

Jen icon_smile.gif

korkyo Cake Central Cake Decorator Profile
korkyo Posted 24 Mar 2009 , 11:51pm
post #8 of 8

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.

Quote by @%username% on %date%

%body%