In conjunction with the agritourism event, I provide food that my family has cooked from my own farm produce. Should I charge tax on the prepared food?

To the extent that the cooked food is entirely from your own produce or agricultural products and
there is a separate charge for the cooked food from the amusement, recreation, or entertainment
activity, the sale of the prepared food is exempt from sales tax. If the cooked or prepared food or
“value-added” product contains any non-raised components or ingredients other than water, sugar, salt, pectin, or preservatives, the charge becomes subject to the 7% state sales tax plus the local sales tax rate in effect in your jurisdiction.


However, combining the charge for the non-taxable prepared food with that of the taxable
entertainment activity into one ‘bundled’ charge will subject the total bundled charge to tax. It
should also be pointed out that your sales of beverages, (soft drinks, beer, tea, etc.) produced by
others are taxable.

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