The department was recently asked to provide guidance as to whether the sale of take and bake pizzas are subject to Wisconsin sales tax. In general, sales of food and food ingredients are not taxable, however, sales of the following food and food ingredients are taxable:
- soft drinks
- dietary supplements
- prepared food
Sales of take and bake pizzas made by a retailer are subject to Wisconsin sales tax because the pizzas are prepared food. Prepared food includes two or more food ingredients mixed or combined by a retailer for sale as a single item.
Exceptions: Sales of the following take and bake pizzas made by a retailer may not be considered prepared food and, therefore, may not be taxable (see the flowchart in Appendix I of Publication 220, Grocers for more information):
- Pizzas sold unheated by volume or weight.
- Pizzas, no part of which was previously heated by the retailer, that are sold unheated, contain meat, fish, egg, or poultry in raw form, and that require cooking by the consumer, as recommended by the Food and Drug Administration in Chapter 3, Part 401.11 of its food code to prevent food borne illnesses.
The full definition of "prepared food" is found in sec. 77.51(10m), Wis. Stats. (2011-12) and described further in sec. Tax 11.51(4), Wis. Adm. Code (August 2012 Register).
February 13, 2014