Does California charge sales tax on take out food from restaurants?

Answer 1

Yes. And this becomes very confusing because some places do, and some do not. Like Starbucks vs. Coffee Bean.

It's a good question, and the answer is yes, they do, because in general they must, but some places like Coffee Bean don't, and that's what makes it confusing.

Here's why they tax. Nowadays in California, all hot and prepared food is taxable if 80% of the merchant's sales are food and beverages and 80% can be possibly consumed on site, with tables, chairs, whatever.

But there is an exception for to-go hot food, bakery products and some cold foods that Coffee Bean takes advantage of. If the merchant petitions the Board of Equalization taxing authority, they don't have to charge sales tax on these items as long as they keep records and charge separately for the items. That's why at Coffee Bean they always ask you at the counter "for here or to-go?"

Starbucks does not exempt items from sales tax and they don't have to if they don't want to-- they also include the tax within the price of the coffee or beverage.

I visit Starbucks at Target. My drink costs $2.14, when I say to go, the drink is $1.95. Apparently when a Starbucks is located in Target you don't have to pay sales tax on drinks to go. Starbucks is ripping the consumer off by not making this fact known. 99% of ttheir customers get their drinks and leave, eg., to go. The employees have told me that Satrbucks told them not to tell the consumer this.