Authority: IC 6-8.1-3-3

Affected: IC 6-2.5

Sec. 39. (a) The gross retail tax act specifies the items which constitute tax exempt food for human consumption.

(b) A number of items normally sold by grocery stores, supermarkets, and similar type of businesses are classified in this regulation [45 IAC 2.2] under the heading "nontaxable items". These examples are for illustrative purposes and are not intended to be all- inclusive. "NONTAXABLE ITEMS" Baby Foods Bakery Products Baking Soda Bouillon Cubes Cereal & Cereal Products Chocolate (for cooking purposes only) Cocoa Coconut Coffee & Coffee Substitutes Condiments Cookies Crackers Dehydrated Fruit & Vegetables Diet Foods Eggs & Egg Products Extracts, Flavoring as an Ingredient of Food Products Fish & Fish Products Flour Food Coloring Fruit & Fruit Products, including Fruit Juices Gelatin Health Foods Honey Ice Cream, Toppings, and Novelties Jams Jellies Ketchup Lard Marshmallows Mayonnaise Meat & Meat Products Milk & Milk Products Mustard Nuts, including salted, but not chocolate or candy-coated Oleomargarine Olive Oil Olives Peanut Butter Pepper Pickles Popcorn Potato Chips Powdered Drink Mixes (Presweetened or Natural) Relishes Salad Dressings and Dressing Mixes Salt Sauces Sherbets Shortenings Soups Spices Sandwich Spreads Sugar, Sugar Products, and Sugar Substitutes Syrups Tea Vegetables & Vegetable Products (Excluding Salad Bars) Vegetable Juices Vegetable Oils Yeast Some items in the above categories will be subject to tax if they are sold in small quantities and, therefore, are prepared for immediate consumption.

(Department of State Revenue; Ch. 5, Reg. 6-2.5-5-20(b)(010); filed Dec 1, 1982, 10:35 am: 6 IR 48; filed Aug 6, 1987, 4:30 pm: 10 IR 2636)