Retail sales of prepared food are subject to the full Tennessee state sales and use tax rate of 7% plus the applicable local option rate, unlike unprepared food which is subject to a reduced state rate of 6% plus the local option tax rate. The food is subject to the higher rate if: 1) the retailer sells the food in a heated state or is heated by the seller, 2) two or more food ingredients mixed or combined by the seller for sale as a single item; or 3) or the food is sold with utensils. Prepared food does not include food that is only sliced, repackaged, or pasteurized. (Revenue Ruling No. 14-16, Tennessee Department of Revenue, June 5, 2004.)