In a recent decision, dated February 13, 2025, the New York State Division of Tax Appeals (DTA No. 830368) issued a decision confirming that sales tax applied to party platters sold by a Buffalo deli. The case involved Todd Neupert (petitioner), owner of the Tailgate Deli in Buffalo, who filed a petition challenging a notice of determination issued by the New York Division of Taxation. The notice issued assessed $12,579.62 in sales tax for the period of March 1, 2017, through November 30, 2019, after a state audit concluded the petitioner had not been collecting sales tax on his party platters. These platters included sliced meats, sliced cheeses, sandwich toppings, condiments, and rolls. All platters were packaged for customers to take home and assemble themselves.
The petitioner argued that the platters merely provided ingredients, not finished products, and thus should be exempt. However, New York tax law focuses on the level of preparation done by the seller, not whether the food is fully assembled. According to state law, cold food sold for off-site consumption is taxable if it is prepared in a way that makes it ready to eat, like slicing, packaging, or arranging it for convenience. In this case, the meats and cheeses were pre-sliced, the vegetables were chopped, condiments were portioned into individual containers, and everything was attractively arranged on a tray. The judge found that this level of preparation qualified the platters as “prepared food” under the law, making them subject to sales tax.
The petitioner also argued that during a prior audit, an auditor stated that these items were not taxable. However, without written documentation or specific details, the court could not consider that claim. The Division of Tax Appeals upheld the tax bill, stating that the platters were designed for immediate consumption, even if the customer had to make the sandwich themselves.
Any deli, grocery, or catering business should be aware that it is not just about what you sell, it is how you sell it. Even if customers do some assembly at home, if the product is ready for immediate consumption, it may be taxable under New York Law. Businesses are encouraged to carefully review tax rules and regulations to avoid unexpected liabilities.
(Decision DTA no. 830368, New York State Division of Tax Appeals, February 13, 2025)