Were baked goods from a home-based cottage-food bakery exempt when sold for off-premises consumption or at vendor events?

Plain-English summary

The Florida Department of Revenue concluded that baked goods sold by this home-based cottage-food bakery for off-premises consumption were exempt from sales tax.

Customers ordered and picked up products to eat elsewhere, and vendor events had no seating. The bakery's lack of a bakery license under the cottage-food law did not prevent the food-products exemption.

Two limits applied. Sales at an event charging admission were taxable, and products normally regarded as candy or confectionery were taxable even when sold by the bakery.

What this means for you

Home and cottage-food bakeries

Document off-premises consumption, the absence of eating facilities, and whether vendor events charge admission.

Event sellers

Ask the organizer whether customers must pay to enter. That fact can change the sales-tax treatment of otherwise exempt food.

Accountants and tax professionals

Classify candy separately from ordinary bakery products and do not equate licensing status with sales-tax status.

Common questions

Q: Were home pickup sales exempt?
A: Yes.

Q: Were sales at free-entry vendor events exempt?
A: Yes.

Q: Were candy products exempt?
A: No.

Citations and references

• Fla. Stat. §§ 212.08(1), 212.08(1)(c)11., 213.22(1), 500.12, and 500.80(1)(a)

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 15A-016

Original ruling text

Executive
Director
Marshall Stranburg

QUESTION: WHETHER THE SALE OF BAKED GOODS SOLD FROM A HOME-BASED
BAKERY ARE EXEMPT FROM SALES TAX AS A FOOD PRODUCT UNDER S. 212.08(1), F.S.
ANSWER: BAKED GOODS PREPARED FROM A HOME-BASED BAKERY QUALIFY AS AN
EXEMPT FOOD PRODUCT UNDER S. 212.08(1), F.S., AND ARE NOT SUBJECT TO SALES TAX.
November 9, 2015
Re:

Technical Assistance Advisement – TAA 15A-016
Baked Goods for Consumption off the Premises of Seller
Taxpayer Name: XXXXX (“Taxpayer”)
Sales and Use Tax
Section 212.08(1), Florida Statutes (F.S.)

Dear XXXXX:
This response is in reply to your letter to the Department, dated XXXXX, 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 whether the sales of baked goods for off-premises consumption are
exempt from sales tax as a food product under section 212.08(1), F.S. 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.
As provided in s. 213.22(1), F.S., a technical assistance advisement may be issued to a taxpayer who
requests an advisement relating to the exemptions in s. 212.08(1) or (2), F.S., at any time. “Technical
assistance advisements shall have no precedential value except to the taxpayer who requests the
advisement and then only for the specific transaction addressed in the technical assistance advisement,
unless specifically stated otherwise in the advisement.”
REQUESTED RULING
You are requesting advisement regarding whether the sales of baked goods from your home-based bakery
are exempt from sales tax as a food product and whether the sales of your baked goods at “vendor events”
are subject to sales tax under s. 212.08(1), F.S.

Child Support – Ann Coffin, Director  General Tax Administration – Maria Johnson, Director
Property Tax Oversight – Dr. Maurice Gogarty, Director  Information Services – Damu Kuttikrishnan, Director

http://dor.myflorida.com/dor/
Florida Department of Revenue
Tallahassee, Florida 32399-0100

Technical Assistance Advisement
Page 2 of 3
FACTS
As stated in your letter, you operate a home-based bakery operating under the Cottage Food Laws, which
do not require your operation to be licensed as a bakery by the Department of Agriculture and Consumer
Services under Chapter 500, F.S. Customers order the bakery products from you and pick them up for
consumption elsewhere. You also sell bakery products at “vendor events” where there are no seating
areas available. You have not specified if there is an admission charge to attend the vendor events where
your products are sold.
LAW
As provided in s. 500.80(1)(a), F.S a “cottage food operation” does not have to obtain a permit or register
as a bakery or pastry shop with the Department of Agriculture and Consumer Services if the operation
complies with specific requirements of s. 500.12, F.S., and has annual gross sales of cottage food products
that do not exceed $15,000.
For sales tax purposes, s. 212.08(1), F.S., exempts the sale of food products. The term “food products”
includes bakery products sold by bakeries, pastry shops, or like establishments that do not have eating
facilities. However, if a bakery or pastry shop has eating facilities, this exemption does not apply and
sales tax should be collected unless the bakery products are specifically packaged and sold for
consumption off the premises. The exemption for food products also does not apply to food products sold
ready for immediate consumption within a place, or at an event, the entrance to which is subject to an
admission charge. The exemption for food products also does not apply to the sale of candy and any
similar product regarded as candy or confection, based on its normal use, as indicated on the label or
advertising thereof. See s. 212.08(1)(c)11., F.S.
CONCLUSION
Regardless of whether you are not required to be licensed as a bakery or pastry shop with the Department
of Agriculture and Consumer Services under Chapter 500, F.S., since you only sell bakery products for
consumption off premises, sales made from your home-based bakery business are exempt from sales tax.
The sales made at vendor events are also exempt from sales tax unless they are sold at an event where the
entrance has an admission charge. Lastly, any of your products that would be regarded as candy are
subject to 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.

Technical Assistance Advisement
Page 3 of 3
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) 717-7202.
Sincerely,

Richard R. Parsons
Tax Law Specialist
Technical Assistance & Dispute Resolution
(850) 717-7202
Record ID: 202713