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Committee hears 'three‑item' rule for grocery bakery items: fewer than three taxed as meals
Summary
Staff restated Vermont's meals-tax rule that single or two bakery items sold for immediate consumption are subject to meals tax while purchases of three or more are treated as grocery sales and not subject to meals tax; staff flagged a possible different treatment at dedicated donut shops and said they'd follow up.
A committee briefing clarified a narrow meals-tax rule that affects bakery purchases in grocery stores: single or two items sold for immediate consumption are treated as a meal and are subject to meals tax, while purchases of three or more are treated as grocery sales and are not taxed as…
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