Food sold to go
When food is sold on a to go or take-out basis, the taxability of the sale will depend in part on whether your sales
meet the requirements under the 80/80 rule.
80/80 rule
The 80/80 rule applies to your business if:
• More than 80 percent of your business’s gross receipts come from the sale of food products (note: alcoholic and
carbonated beverages, while taxable, are not considered food products); and