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