Illinois Grocery To Reinstate Grocery Tax

[Alpha8472]

Most states do not tax groceries, but Illinois will reinstate its tax after 1 year.

Thirteen states tax groceries including Mississippi at 7 percent.

Is this not excessive?

https://www.supermarketnews.com/retail- ... ion-relief

[storewanderer]

Various states apply sales tax to groceries. But in other states some cities apply a sales tax to groceries (even if the state does not).

In some states only certain cities apply a sales tax to groceries. Arizona is like that. A few cities have a grocery tax. And the current legislature in that state tried to ban cities from imposing a grocery tax there but the current governor vetoed that initiative.

Also certain states that do not put a sales tax on groceries have, in recent years, added a sales tax to carbonated beverages (including seltzer which has no sugar/calories) and candy for "health" reasons. States that have done this include CA, WA, CO, ND, MN, TX, and various others.

Places with no grocery sales tax are an exception rather than the norm. I am happy that there is no such sales tax in CA/NV (other than on the carbonated in CA). CA is also quite "friendly" in there being no tax as long as you do "to go" at Starbucks, buy an ice cream cone, order a cold sandwich to go at various sandwich shops, etc. NV taxes all of those prepared food type items whether hot or cold.

[veteran+]

There are other criteria for food taxing in Cali as well.

Hot prepared foods in store are taxable, for example.

[storewanderer]

There are other criteria for food taxing in Cali as well.

Hot prepared foods in store are taxable, for example.

The criteria between NV and CA used to be quite similar with regard to tax on prepared foods but over time what has happened is ambiguity and in the case of CA lawsuits have occurred that made things better for the consumer (no tax on cold prepared food "to go" basically- hot food is taxable regardless of anything else just because it is hot, unless it is coffee to go in which case no tax on coffee to go) and in NV the businesses are cautious so they tend to tax prepared food items (cold ones) in some cases when such items should not be taxed. I've also run into many restaurants in CA that tax everything to go just because they are a restaurant without regard for the hot/cold distinction. So I order a cold sandwich to go at a full service restaurant in CA and it gets tax. If I go to a Subway, local deli, grocery store, etc. in CA and order a cold sandwich to go, no tax.

Also a little known rule in CA is there is not supposed to be sales tax in convenience stores on dispensed cold non-carbonated beverages (iced tea from a dispenser, gatorade from a dispenser, etc.) and many of the major chains have this policy posted. There were lawsuits that caused a "sales tax reimbursement" for a time period where some chains like 7-11, AM PM, stopped collecting sales tax on all fountain drinks including carbonated ones for a certain time period (that has since expired). So now the policy is tax on carbonated but no tax on non carbonated and signs are posted in most of the stores to this effect. Speedway had no clue about this distinction in CA. Even at the chains like Circle K or AM PM with a sign posted, and buttons on the register for non-carbonated drink that do not charge tax, few of the employees have a clue about it.

[buckguy]

The prevailing state sales tax rate is charged on food in most of the South. Elsewhere, it's an exercise in the arcane.

[veteran+]

The prevailing state sales tax rate is charged on food in most of the South. Elsewhere, it's an exercise in the arcane.

YEP!

I noticed that as well.

[Super S]

Idaho's sales tax applies to just about everything, including groceries. The only thing not subject to the sales tax when I lived there was prescriptions. Idaho has been known to go after people like Girl Scouts selling cookies to make sure sales taxes are being collected.

I am a little surprised that more retail hasn't opened around Ontario, OR, where there is no sales tax, to try to attract shoppers from the Boise area looking to save sales tax.

[storewanderer]

Idaho's sales tax applies to just about everything, including groceries. The only thing not subject to the sales tax when I lived there was prescriptions. Idaho has been known to go after people like Girl Scouts selling cookies to make sure sales taxes are being collected.

I am a little surprised that more retail hasn't opened around Ontario, OR, where there is no sales tax, to try to attract shoppers from the Boise area looking to save sales tax.

I think this is becoming less and less important. Look at the OR/WA line. I feel like there used to be a time when there was no chance for much retail over the WA line from Portland but over the years it seems like there is more retail up there and people paying the sales tax in WA (non food/carbonated drinks/candy) rather than making the trek over the state line. Plus the various home delivery services where you pay tax based on the billing address.

There will always be people like me who try to manipulate the situation to my benefit and avoid paying sales tax if I can route things accordingly when traveling (like make sure to buy restaurant food over in OR rather than over in WA if the timing is right and options are right) but more and more I think people just don't care as much anymore about these things.

I realized on seltzer for instance it didn't matter much if I bought in OR or WA. OR has no sales tax but hits a bottle deposit. WA has no bottle deposit but hits a sales tax. So net net there is not much difference. Maybe I throw in some random non food item that costs $3 and get hit for sales tax on that but I don't really care about getting hit for 24 cents of sales tax on a $3 item if I'm staying on the WA side (which is what I started doing since COVID) and I forget to get or don't find said item over on the OR side.

[norcalriteaidclerk]

Idaho's sales tax applies to just about everything, including groceries. The only thing not subject to the sales tax when I lived there was prescriptions. Idaho has been known to go after people like Girl Scouts selling cookies to make sure sales taxes are being collected.

I am a little surprised that more retail hasn't opened around Ontario, OR, where there is no sales tax, to try to attract shoppers from the Boise area looking to save sales tax.

I think this is becoming less and less important. Look at the OR/WA line. I feel like there used to be a time when there was no chance for much retail over the WA line from Portland but over the years it seems like there is more retail up there and people paying the sales tax in WA (non food/carbonated drinks/candy) rather than making the trek over the state line. Plus the various home delivery services where you pay tax based on the billing address.

There will always be people like me who try to manipulate the situation to my benefit and avoid paying sales tax if I can route things accordingly when traveling (like make sure to buy restaurant food over in OR rather than over in WA if the timing is right and options are right) but more and more I think people just don't care as much anymore about these things.

I realized on seltzer for instance it didn't matter much if I bought in OR or WA. OR has no sales tax but hits a bottle deposit. WA has no bottle deposit but hits a sales tax. So net net there is not much difference. Maybe I throw in some random non food item that costs $3 and get hit for sales tax on that but I don't really care about getting hit for 24 cents of sales tax on a $3 item if I'm staying on the WA side (which is what I started doing since COVID) and I forget to get or don't find said item over on the OR side.

Another factor could be the 'marketplace facilitator' laws that have been passed in recent years compelling online retailers(especially including third party sellers utilizing Amazon Marketplace or eBay though not necessarily limited to them)to charge sales tax on online purchases based on shipping address in states where applicable.This alone may be making it harder to manipulate the situation in respect to cross-state line shopping and/or online shopping.

[BillyGr]

I realized on seltzer for instance it didn't matter much if I bought in OR or WA. OR has no sales tax but hits a bottle deposit. WA has no bottle deposit but hits a sales tax. So net net there is not much difference. Maybe I throw in some random non food item that costs $3 and get hit for sales tax on that but I don't really care about getting hit for 24 cents of sales tax on a $3 item if I'm staying on the WA side (which is what I started doing since COVID) and I forget to get or don't find said item over on the OR side.

Except that if you bought the drinks with no tax but having deposit, you can return the bottles and get the deposit back. You don't get the tax back with an empty bottle