x0000x0000Exclusion for the sale of groceries - PDF document

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��Exclusion for the sale of groceries 1 exclude receipts frthe sales of groceries? Answer:A taxpayer clude receipts he retail or 漀映栀漀琀⁦潯搠漀爀  灲数愀爀攀搠昀漀漀搮 坨整桥爀⁴桥⁢畳楮敳猀 漀晦敲猀渀 猀楴攠摩湩湧⁦愀挀楬椀琀楥猀爀⁳灡挀攬⁡湤⁩昀 猀漀Ⱐ眀桥琀桥爀⁴桥 灥爀挀敮琀慧攠漀映昀汯漀爀⁳灡挀攠摥摩挀慴敤⁴漀⁤楮楮最⁩猀⁧爀敡琀敲 琀桡渀⁴桥⁰敲挀敮琀慧攠漀映昀汯漀爀 猀灡挀攠摥摩挀慴敤⁴漀⁳桥氀瘀敳⁤楳灬慹楮最⁧爀漀挀敲椀敳⁡瘀慩污戀汥⁴漀  挀畳琀漀洀敲猀⁦潲⁲攀琀慩氠猀慬攮 䉵猀楮敳猀⁡摶敲琀楳楮最⁡湤慲欀整楮最⸀ Example: A bottle of water is sold at a movie theater concession counter. A bottle of water is a type of beverage that is eligible for purchase with SNAP benefits and, therefore, meets Requirem ent 1. However, items sold at movie theater concession counters are not typically intended for consumption at the purchaser’s home. s such, the transaction does not meet Corporate Activity Tax 2 Requirement 2. The receipts his ify he exclusion for roceries. Therefore, the seller ust clude receipts he sale of the bottle f water ommercial activity. If you are a qualified SNAP retailer, with a current rmit U.S.

2 Department of Agriculture cept NAP bene
Department of Agriculture cept NAP benefits, you may clude receipts he sales SNAP-eligible food sold from he qualified retail store (regardless f whether he groceries ere purchased with SNAP benefits). If you are a qualified SNAP retailer, you may till clude receipts he retail sales grocery ems, provided that he items e intended for, or typically sold to, the final onsumer home consumption. Sales f meals d products by restaurants, cafes, delicatessens, coffee shops, and imilar establishments onsidered retail sales f groceries. The retgrocery clusion does by a store or other than 80of all food items (receipts from Wholesale Sales f Groceries A taxpayer clude receipts he wholesale sale of groceries ovided that the sale meets all of the following equirements: Requirement The sale is a wholesalsale. Requirement 3:The sale must be made for he purpose of reselling he food item, without processing, to he final retail consumer onsumption at home. Please note: Processing means transforming or changing the physical characteristics of the food item, including incorporation or consumption of an item as an ingredient or component in the production or manufacture of another item. Requirement 4:The taxpayer aking the wholesale sale must btain written certification from the purchaser grocery ill be resold at retail without processing intended for, or typically purchased by,

3 the final onsumer home consumption. cu
the final onsumer home consumption. cument erve as erification, provided that ontains f the purchase, the purchaser’s name and ess, the items purchased, and urchase amount, and verification from he purchaser f the amount f the purchase that will be resold, without processing, to he final consumer home consumption. A wholesale seller Corporate Activity Tax 3 contract, invoice, sales receipt, or any other document as written certification, provided that it contains the required information. A wholesale seller is not required to obtain separate verification if the purchase was made for the purpose of resale without further processing, and A. The purchaser is a qualified SNAP retailer with a current permit to accept SNAP benefits from the U.S. Department of Agriculture; or B. The purchaser is a store that meets the required qualifications to be a SNAP retail food store under 7 U.S.C. 2012(o)(1), (2), (4) or (5) . The wholesale seller must retain documentation that, at the time of sale, the items were sold and delivered to a purchaser that meets the re quirements in (A) or (B). The U.S. Department of Agriculture provides a list of all qualified SNAP retailers on its website . For further information on excludable wholesale sales of groceries , including examples, please refer to OAR 150 - 317 - 1140: Wholesale Sale of Groceries Exclusion