Navigating sales tax regulations for food businesses in Ohio can be tricky. This guide clarifies the rules surrounding “To Go Food” and helps you determine when sales tax applies. We’ll break down the definitions of food, beverages, and premises according to the Ohio Revised Code, focusing on takeout orders.
Defining “Food” for Takeout in Ohio
The Ohio Revised Code Section 5739.01 (EEE)(1) defines food as any substance, in any form (liquid, solid, frozen, etc.), intended for human consumption for taste or nutritional value. This broad definition excludes alcoholic beverages, dietary supplements, soft drinks, and tobacco. Crucially, for “to go food,” this generally means prepared meals, snacks, and other edibles intended for off-premise consumption are tax-exempt.
Beverage Breakdown: Taxable or Exempt?
While “to go food” is generally tax-exempt, beverages require closer examination. The key differentiator is whether a drink qualifies as “food” under Ohio law.
- Food Beverages: Plain coffee, tea, water, and beverages with more than 50% fruit or vegetable juice are considered food. Milk and milk substitutes (soy, rice, etc.) also fall under this category, even if flavored. These beverages are tax-exempt when sold with takeout orders.
- Non-Food Beverages (Soft Drinks): The Ohio Revised Code Section 5739.01 (EEE)(2)(c) defines “soft drinks” as non-alcoholic beverages containing natural or artificial sweeteners. This includes soda, sweetened tea or coffee, sweetened flavored water, and fruit drinks with less than 50% juice content. Important: Soft drinks are always taxable in Ohio, regardless of whether they are consumed on or off the premises. This means even with a “to go food” order, the soft drink will incur sales tax.
What Constitutes “Premises” in Ohio?
The Ohio Revised Code Section 5739.01 (K) defines “premises” as any real property where retail sales occur, including areas designated for use in conjunction with the business. For food service, this means the physical location of your restaurant, including dining areas, kitchens, and even parking lots if used for business purposes. Food consumed within these boundaries is considered “on premises” and is taxable. “To go food,” by definition, is for consumption off these premises and is therefore tax-exempt (excluding soft drinks).
Clarifying Beverage Taxation for To Go Orders
To simplify, here’s a table outlining common beverage classifications for takeout orders in Ohio:
| Beverage | Food (Tax-Exempt with To Go Food) | Non-Food (Taxable) |
|---|---|---|
| Canned/Bottled Coffee/Tea (no milk/substitute) | X | |
| Canned/Bottled Coffee/Tea (with milk/substitute) | X | |
| Plain Coffee/Tea | X | |
| Coffee/Tea with Creamer | X | |
| Sweetened Coffee/Tea | X | |
| Soda | X | |
| Sweetened Energy/Sports Drinks | X | |
| Fruit Juice (>50% juice) | X | |
| Fruit Juice (<50% juice) | X | |
| Chocolate Milk | X | |
| Water | X | |
| Sweetened Flavored Water | X | |
| Naturally Flavored Water | X |
Key Takeaway for To Go Food
Understanding these distinctions ensures accurate sales tax collection for your “to go food” business in Ohio. Remember, while most food items are exempt for takeout orders, soft drinks are always taxable. By correctly applying these rules, you maintain compliance with Ohio tax law and provide a clear and transparent experience for your customers.
