Sales, Use and International Tax Activity Update - January 2010

Michigan Bites into Prepared Food Taxability

The Michigan Department of Treasury has revised a bulletin on the applicability of sales and use tax to food for human consumption. Prepared food remains subject to sales and use tax. However, the following items are excluded from the definition of prepared food and are not taxable:

• Food that is only cut, repackaged, or pasteurized by the seller;
• Raw eggs, fish, meat, poultry, and foods containing items requiring cooking by the consumer in recommendations of the food code of the department of health and human services;
• Food sold in an unheated state by weight or volume as a single item, without utensils; or
• Bakery items sold without utensils.

The bulletin further addresses the taxability of specific food items, including items sold at concessions, food bars, and delicatessens, and bakery items, ice, sandwiches, frozen foods, prepackaged carry-out food items, and food sold through vending machines.

The full revenue administrative bulletin can be viewed on the Michigan.gov Web site.

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