Indiana DOR Determines Taxpayer’s Sale of Frozen Popsicles Not Subject to Food, Beverage Tax

The Indiana Department of Revenue (DOR) May 17 determined in a letter ruling that Taxpayer’s sale of frozen popsicles wasn’t subject to Food and Beverage (FAB) Tax, for sales and use tax purposes. Taxpayer, a retail merchant, sold frozen popsicles in two counties. The DOR completed a “Compliance Review” of Taxpayer and concluded that Taxpayer owed additional tax because the FAB tax wasn’t reported on Taxpayer’s sales tax return. Taxpayer protested. The DOR noted that: 1) the FAB tax applies only to transactions that take place in a county or municipality that adopts the tax; 2) the FAB tax doesn’t ...