Prepared Food & Beverage Tax

The Wake County Board of Commissioners levied a Prepared Food and Beverage Tax of one percent (1%) of the sale price of prepared food and beverages effective January 1, 1993. This tax is applicable to all prepared food and beverages sold at retail for consumption, on or off the premises, by any retailer with sales in Wake County that are subject to sales tax imposed by the State under G.S. 105-164.4(a)(1). This tax is collected by the merchant, in addition to N.C. State Sales Tax, and is remitted to the county on a monthly basis.

It is the responsibility of the retailer to contact the Wake County Revenue Department to establish a tax account number for reporting purposes. This can be done by calling our office at 919-856-5999, or by filling out a Prepared Food & Beverage Tax Application and mailing to:

Wake County Revenue Department
Prepared Food & Beverage Division
P.O. Box 2719
Raleigh NC 27602-2719

Once a tax account number is established, a coupon booklet will by sent to the retailer for use in their monthly filing. To view a sample coupon, select the link on the right-hand side of your screen.

A prepared food or beverage is defined as any food or beverage which has been altered (other than solely by cooling) by preparing, combining, dividing, heating, or serving, in order to make the food or beverage available for immediate human consumption.

In addition to establishments such as restaurants, sandwich shops, and delicatessens, this tax also applies to any establishment, which dispenses any beverage or prepares any type food such as popcorn, cotton candy, etc.

The Prepared Food and Beverage Tax does not apply to the following sales of food and beverage:

Sales through vending machines.
Retail sales exempt from taxation under G.S. 105-164.13 (Exemptions and Exclusions) on January 1993.
Sales prepared by someone other than the retailer for immediate consumption and merely placed on display for sale purposes. Examples include prewrapped sandwiches, packaged crackers, prepacked ice cream, etc.
Prepared food and beverages served by any establishment subject to the County's Occupancy Tax if the charge for the food or beverage is included in a single, non-itemized sales price, together with the charge for room rental, lodging, or accommodations furnished by the taxable establishment.
Prepared food and beverages furnished without charge by an employer to any employee.
Prepared food and beverages served to residents in boarding houses on a periodic basis, which are included with the rental of any sleeping room or lodging.

For more information, please read our Prepared Food and Beverage Tax Rules and Regulations and view the Tax Rate Chart.

Prepared Food and Beverage Tax Rules & Regulations

For the purpose of establishing standards and definitions which may be applied uniformly with regard to the implementation of the Wake County Prepared Food and Beverage Tax, the County Revenue Department, in accordance with the authorization provided by Section 5 of the Wake County Ordinance to Establish and Levy a Prepared Food and Beverage Tax hereby adopts the following Rules and regulations with regard to the Prepared Food and Beverage Tax.

Subject Businesses
Subject businesses are any retailer within Wake County that are subject to sales tax imposed by the State of North Carolina under section 105-164.4(a)(1) of the North Carolina General Statutes, which would include:

Restaurants
Cafes
Cafeterias
Coffee shops
Grills
Snack bars/carts
Lounges
Bars
Taverns
Mobile vendors
Vendors at sporting, cultural and entertainment events
Fast food establishments
Drive-in establishments
Private club dining facilities
Caterers
Independent bakeries
Grocer and independent delicatessens
Convenience store/marts
Luncheon counters/soda fountains at drugstores
Pharmacies and other general retail stores
Nightclubs
Wet bars
Concession stands
Ice cream parlors/shops
Employee cafeterias that charge for food and beverages
Any other establishment, place of business or enterprise maintaining facilities, equipment, services or inventory for the sale of any type or kind of prepared food, food product, meal or beverage sold to consumers.

Prepared Food and Beverages

Any food or beverage which is prepared to the order of the purchaser or which is cooked and/or maintained at or near the cooking temperature or kept at or above room temperature to make it or for it to remain palatable and suitable prior to sale, shall be considered to be made available for immediate consumption and subject to the Prepared Food and Beverage Tax.

Sales from vending machines are specifically exempt from the Prepared Food and Beverage Tax.
Sales of prepared food and beverages are subject to the Tax unless prepared by someone other that the retailer for immediate consumption and merely placed on display for sale purposes. Examples include prewrapped sandwiches, packaged crackers, prepacked ice cream, etc.
Sales of prepared foods and beverages available for immediate consumption that are sold on a "take-out", "to-go" or delivery basis are subject to the Prepared Food and Beverage Tax.
Any alcoholic or nonalcoholic beverage sold by the drink or as part of a meal is subject to this tax. Exceptions would be soft drinks and alcoholic beverages (i) purchased in unopened package form (i.e., six pack, cans, bottles, cases) and (ii) not to be consumed on the premises of the retailer or where otherwise served by a caterer. Examples of taxable beverages include a bottled drink sold by a caterer or bar for opening and consumption by a customer on the retailers premises or whenever served by a caterer and orange juice and milk served at a fast food establishment; nontaxable beverages include can drinks sold by a convenience store and a bottle of wine sold by a retailer for "take-out" by the consumer.
Prepared Food and Beverage sales made to the general public or employees that are paid for, directly or indirectly, by cash, charge card, payroll deduction, meal ticket, voucher or other means are subject to this tax and must be collected by the retailer or employer.
Sales derived from Salad Bars (i.e. cut-up fruits and vegetables) sold in various sized servings, usually by the pound or plates are subject to this tax.
Salad items such as potato salad, cole slaw, macaroni, bean and congealed salads including chicken salad, etc., and sliced or unsliced meats that the retailer has not altered by heating or combining two or more foods (i.e. retailer is merely repackaging), which are sold in carry-out containers, are not subject to this tax; any of the forgoing sold as part of a meal, deli tray or otherwise as part of a steamed table products is subject to this tax.
Whole pies and cakes altered on-site in any way (icing added, decorated, baked, etc.) are subject to this tax.

In addition to the foregoing, the following rules and regulations apply to the category or retailers set forth below:

Independent Bakeries
Food and beverages prepared by an independent bakery are subject to this tax if baked, decorated or altered in any way on the retailer's site.

Caterers and Food Delivery Services
Any food or beverage prepared by a caterer or food delivery service (regardless of the primary place of business or place of food preparation) and served within Wake County will be subject to the Prepared Food and Beverage Tax.

Any food or beverage prepared by caterers or food delivery services located within Wake County to be served outside the County will not be subject to the Prepared Food and Beverage Tax.

Convenience Stores
Examples of food and beverages subject to this tax include hot dogs (whether placed on rotisserie by customer or retailer), brewed coffee, fountain drinks and dip ice cream, etc. Prepackaged sandwiches prepared by someone other than the retailer are not subject to this tax.

Temporary Vendors
All temporary food and beverage vendors that operate as such, must make a fifty dollar ($50) cash prepayment at least one (1) week in advance prior to commencement of business to the Wake County Revenue Department and any additional tax monies due must be paid with the Prepared Food and Beverage Tax Return. A refund will be made if determination is made by the Revenue Department that the tax amount due (plus penalties, if any) is less than the original prepayment amount.

Grocers, Independent Delicatessens and Other Diversified Retail Establishments
Sales of prepared food and beverages in independent delicatessens and in the delicatessen or similar department of a grocer or other diversified retail establishment that are subject to taxation under the Ordinance shall be limited to the sale of any Prepared Food or Beverage that is (i) heated when sold, (ii) sold as a single serving, or (iii) sold as a steamed table product, (iv)altered in any way (except sliced or repackaged) or, (v) any two or more foods and or ingredients combined to make a single item sold as a single serving or sold as a whole packaged item or sold in bulk. For purposes of the Regulation, a "steamed table product" shall mean any one or more foods and beverages sold collectively as a meal available for immediate consumption, including without limitation both heated and cooled foods and beverages.

Deli trays (meat, cheese, fruit, etc.) are subject to the Prepared Food and Beverage Tax.
Sales derived from Salad Bars (i.e. cut up fruits and vegetables) sold in various sized servings, usually by the pound or plates are subject to this tax.

Effective Date
All above foregoing Rules and Regulations became effective January 1, 1993, and may be added to, modified or rescinded by order of Wake County Revenue Department at any time.