087.01 Items that are food or food ingredients are exempt from sales and use tax.
087.01A Food or food ingredients means substances, whether in liquid, concentrated, solid, frozen, dried, or dehydrated form, that are sold for ingestion or chewing by humans and are consumed for their taste or nutritional value.
087.01A(1) Food or food ingredients includes, but is not limited to: cereals, eggs, fruits, meats, vegetables, milk, health foods consumed in place of other foods and not as a vitamin or mineral supplement, flour, cooking oils, sugar, soft drinks, bottled water, ice, candy, and chewing gum.
087.01B Food or food ingredients does not include alcoholic beverages, dietary supplements, or tobacco.
087.01B(1) Dietary supplement means any product, other than tobacco, intended to supplement the diet that is not presented as conventional food and that is required to be labeled as a dietary supplement, identifiable by the supplemental facts box found on the label.
087.02 Prepared foods, vending machine sales, concessionaire sales, and sales by caterers are subject to tax.
087.03 Prepared foods are foods generally intended for, and which are ready for, immediate consumption. Prepared foods means:
087.03A Food sold with eating utensils provided by the seller;
0087.03B Food sold in a heated state or heated by the seller; or
087.03C Two or more food ingredients mixed or combined by the seller for sale as a single item, but not including;
087.03C(1) Food that is only cut, repackaged, or pasteurized by the seller;
087.03C(2) Food sold in an unheated state by weight or volume as a single item; and
087.03C(3) Eggs, fish, meat, poultry, and foods containing these raw animal foods requiring cooking by the consumer to prevent food borne illnesses.
087.04 Prepared foods does not include:
087.04A Food sold by a manufacturer whose primary NAICS classification is a food manufacturer; or
087.04B Bakery items such as bagels, bread, donuts, cakes, pies, cookies and tortillas.
087.05 The following sales of prepared foods are not taxable:
087.05A Certain meals and food served or sold by schools, school groups, and churches, or served to patients by organizations licensed by the state for the care of human beings, (See Reg-1-083, Food Service);
087.05B Meals and food sold at political fund-raising events by ballot question committees, candidate committees, independent committees, and political party committees;
087.05C Meals and food sold by organizations for the elderly, handicapped, or recipients of Supplemental Security Income authorized to accept electronic benefits transfer or food coupons; and
087.05D Concession sales of food by certain schools or school groups as set forth in Reg-1-092, Educational Institutions.
087.06 Sales of food by a retailer of prepared foods when the retailer maintains adequate records on each sale of food are not taxable. If adequate records of food sales are not maintained, sales tax must be collected on such sales of food.
087.07 Any purchases actually made with food coupons, or the electronic equivalent, are not taxable.
087.08 Garden seeds, bulbs, and plants that produce food for human consumption are taxable, unless actually purchased with food coupons, or the electronic equivalent, or when purchased by commercial producers for use in commercial agriculture.
Sections 77-2704.10, 77-2704.24, and 77-2704.54, R.R.S. 2003 and section 77-2704.25, R.S.Supp., 2005. March 7, 2006.