Sales Tax On Prop Cakes

Business By 61999 Updated 9 Dec 2019 , 6:35am by cakefan92

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61999 Posted 13 Nov 2019 , 7:36pm
post #1 of 9

I know we don't add sales tax on custom cakes, but what about prop or faux cakes?

Does anyone know if you do and how that is handled come tax time?

8 replies
-K8memphis Cake Central Cake Decorator Profile
-K8memphis Posted 13 Nov 2019 , 9:08pm
post #2 of 9

in my state yes we charge tax on cakes — it’s purely a local matter

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kakeladi Posted 14 Nov 2019 , 3:11am
post #3 of 9

Yes as K8 said it will depend on where you live   

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SandraSmiley Posted 14 Nov 2019 , 8:17pm
post #4 of 9

bump

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cakefan92 Posted 16 Nov 2019 , 2:07am
post #5 of 9

Why would you be selling prop cakes?

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SandraSmiley Posted 17 Nov 2019 , 1:07am
post #6 of 9

.

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61999 Posted 7 Dec 2019 , 2:51pm
post #7 of 9

Prop cakes are frequently needed for filming, corporations, displays, and a good number of reasons.

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kakeladi Posted 7 Dec 2019 , 3:02pm
post #8 of 9

Did you ever find out if you need to charge tax in your state/county?   My thoughts would be yes but that is just a guess   I’m thinking they’re in the same league as say jewelry, or clothing    Many years ago when I worked in a restaurant we had to charge tax if a sandwich was toasted or grilled but not if served cold!  

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cakefan92 Posted 9 Dec 2019 , 6:35am
post #9 of 9

Under the Cottage Food Law in Texas, we don't have to collect sales tax on any of the items we're allowed to make and sell.  I always thought that was rather strange, considering that ready-to-eat food (such as at a restaurant) must have sales tax added, but if you buy the ingredients at the grocery store there is no tax added.

Now with a prop cake, it seems to me that wouldn't be tax-free since it's not a food item. But I have been known to be wrong so please let us know.

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