Fast food is defined by the Ohio Department of Taxation as food that is sold prepared for quick consumption, whether it is eaten there or is carried away. This includes meals like burgers, fries, and pizza in addition to beverages and sweets. Any additional costs, such as delivery fees or service fees, are also subject to the sales tax.
In Ohio, there is a sales tax on fast food, although there are some supermarket goods that are exempt. These include the majority of foods marketed for domestic use, such as bread, milk, produce, and fruits. However, several food items, like sweets, soft drinks, and dietary supplements, are taxed in Ohio.
Regarding Walmart, they do impose tax on foods that must be sold in Ohio with sales tax. All fast food items offered at their in-store McDonald’s and Subway restaurants as well as any pre-packaged foods that are charged sales tax fall under this category.
The current food tax rate in Ohio is 5.75%, which is applicable to the majority of food goods that are charged sales tax. As part of a larger tax reform initiative in the state, this rate was decreased from 6.25% in 2019.
One might question the taxation of hot meals. This is because cold food is regarded as a necessity, whereas hot food is regarded as a luxury. As a result, Ohio and many other states impose a sales tax on heated meals.
In conclusion, Ohio has a sales tax on fast food, with a current rate of 7.5 percent. While the majority of groceries are exempt from sales tax, other products like candies and soft drinks are. Fast food and prepackaged food items from Walmart are taxed as well. Hot food is taxed since it is considered to be a luxury good in Ohio, where the current food tax rate is 5.75%.