Were separately stated assembly and portion-splitting fees taxable when a meal-assembly business sold raw food kits for customers to cook later?

Plain-English summary

A meal-assembly business sold kits containing fresh raw ingredients and sauces. Customers either assembled the kits themselves or paid the business to assemble and package them, then took the food home to cook immediately or freeze for later. The business also charged a fee to split meals into smaller portions.

Florida treated the raw kits as exempt food products rather than taxable prepared meals. They were uncooked and not sold for immediate consumption.

The separately stated assembly and splitting fees were therefore also not subject to sales tax when charged with those exempt raw food kits.

What this means for you

The result depended on raw food intended for later cooking and on separately stated service charges. Cooked food, meals sold for immediate consumption, or a materially different billing arrangement may be treated differently.

Common questions

Were the raw food kits taxable? No.

Could the business assemble the kits for customers without taxing the fee? Yes, under the facts reviewed.

Could it charge a nontaxable splitting fee? Yes, when separately stated with the exempt kit.

Citations and references

• Fla. Stat. § 212.05(1)(a) (sales tax on retail tangible personal property)
• Fla. Stat. § 212.08(1)(b) and (d)2. (food products and immediate-consumption limits)
• Fla. Stat. § 213.22 (Technical Assistance Advisements)

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 08A-007

Original ruling text

SUMMARY
QUESTION: Whether separately stated meal assembly charges associated with the sale of readyto-cook raw food kits are subject to sales tax.
ANSWER: Separately stated meal assembly and splitting fees charged in connection with the sale
of raw food kits are not subject to sales tax since the raw food kits are exempt from sales tax.
March 14, 2008
XXX
Re:

Technical Assistance Advisement 08A-007
XX
Sales Tax Number – XXX
Sales Tax – Meal Assembly Charges
Sections 212.08(1), F.S.
FEI – XXX

XXX:
This response is in reply to your letter to the Department, dated January 11, 2008, in which you are
requesting the Department's issuance of a Technical Assistance Advisement ("TAA") pursuant to s.
213.22, F.S., and Chapter 12-11, F.A.C., regarding the referenced matter. An examination of your
petition has established that you have complied with the statutory and regulatory requirements for
issuance of a TAA. Therefore, the Department is hereby granting your request for issuance of a
TAA.
ISSUE
Whether separately stated meal assembly charges associated with the sale of ready-to-cook raw food
kits are subject to sales tax.
FACTS
As stated in your letter, you are in the meal assembly business, wherein your customers assemble raw
uncooked grocery products into a “ready to cook” meal. According to our conversations and as stated
on your website, each kit contains a mix of fresh food ingredients and signature sauces. Once the raw
meals are assembled, they are packaged by the customer in containers and are taken home to be cooked
at a later time. The meals can either be cooked when the customer gets home or frozen by the customer
for cooking and consumption at a later date. All ingredients are included in the final meal price.
For an additional charge, customers can also elect to have you assemble and package the raw food kits.
You are seeking a ruling regarding the taxability of fees charged for assembling the meals on behalf of
the customer for pickup later that day (assembly fees), and charges for splitting a meal into smaller
portions (splitting fees). These fees are charged only to customers who order their meals “to go” and not

XXX
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to customers who assemble their own meals.
LAW
Pursuant to Section 212.05(1)(a), F.S., sales tax is imposed at the rate of 6 percent on the sales price
of each item or article of tangible personal property when sold at retail in this state. As provided in
section 212.08(1), F.S., there are exempted from sales tax food products for human consumption.
The term "food products" means edible commodities, whether processed, cooked, raw, canned, or in
any other form, which are generally regarded as food. Section 212.08(1)(b), F.S.
The exemption does not apply to food cooked or prepared on or off the seller’s premises and sold for
immediate consumption, to meals for consumption on or off the seller’s premises, or to food
products cooked, prepared, or sold in or by restaurants, lunch counters, cafeterias, hotels, taverns, or
other like places of business. In determining whether an item is sold for immediate consumption,
there shall be considered the customary consumption practices prevailing at the selling facility.
Section 212.08(1)(d)2., F.S. Sales tax does not apply to raw food kits, since the food kits are not
meals and are not sold for immediate consumption.
CONCLUSION
Based on the facts presented in your letter, on your website, and in our discussions, the separately
stated meal assembly and splitting fees charged in connection with the sale of nontaxable raw food
kits are not subject to sales tax.
This response constitutes a Technical Assistance Advisement under s. 213.22, F.S. which is binding
on the department only under facts and circumstances described in the request for this advice as
specified in s. 213.22, F.S. Our response is predicated on those facts and the specific situation
summarized above. You are advised that subsequent statutory or administrative rule changes or
judicial interpretations of the statutes or rules upon which this advice is based may subject similar
future transactions to a different treatment than expressed in this response.
You are further advised that this response, your request and related backup documents are public
records under Chapter 119, F.S., and are subject to disclosure to the public under the conditions of s.
213.22, F.S. Confidential information must be deleted before public disclosure. In an effort to
protect confidentiality, we request you provide the undersigned with an edited copy of your request
for Technical Assistance Advisement, the backup material and this response, deleting names,
addresses and any other details which might lead to identification of the taxpayer. Your response
should be received by the Department within 15 days of the date of this letter.
If you have any further questions with regard to this matter and wish to discuss them, you may
contact me directly at (850) 922-4838.
Sincerely,

XXX
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Richard R. Parsons
Tax Law Specialist
Technical Assistance & Dispute Resolution

Record ID: 40153