Town of Jonesville Proposing New 5% Prepared Meals Tax

The Town of Jonesville will conduct a Public Hearing on May 22nd, at 6:30p.m. at Cumberland Bowl Park in Jonesville in the American Legion Building. The purpose of the hearing is to garner public input concerning the implementation of a 5% tax on prepared meals. For additional information please contact the Jonesville Town Hall at 276-346-1151.
What is considered a “meal” that is subject to the Meals Tax? A meal is any prepared food or drink offered or held out for sale by a food establishment for the. purpose of being consumed by any person to satisfy the appetite and that is ready for immediate consumption. The meal, or prepared food, is subject to the Meals Tax whether it is intended to be consumed on the seller’s premises or elsewhere and without regard to the manner, time or place of service.
If passed, when dining out customers will be asked to pay not one but two types of tax. The regular sales tax and an additional meals tax as local governments attempt the meals tax to help cover budget defieciencies. Prepared Meal Taxes are generally decided by city governments, however the tax is not incredibly common. According to surveys of the highest populated cities in the United States only 15 of them require customers to pay an additional meal tax.
A food establishment is any place in or from which food or food products are prepared, packaged, sold or distributed in the city, including but not limited to, any restaurant, dining room, grill, coffee shop, cafeteria, cafe, snack bar, lunch counter, convenience store, movie theater, delicatessen, confectionery, bakery, eating house, eatery, drugstore, ice cream/yogurt shops, lunch wagon or truck, pushcart or other mobile facility from which food is sold, public or private club, resort, bar, lounge, or other similar establishment, public or private.
 Also, a food establishment shall include private property outside of and contiguous to a building or structure operated as a food establishment at which food or food products are sold for immediate consumption.

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