Farmers Market Council Bluffs

No. Fruits and vegetables sold for human consumption are exempt from tax. Pumpkins are exempt regardless of their use.

If your customer will be consuming the produce from the seeds, plants, or trees, the sale is taxable. If the produce from the seeds, plants, or trees are grown by a commercial produce grower or truck gardener primarily for resale, then the sales of seeds, plants, or trees that produce food are exempt.

“Prepared food” means any of the following:

• Food sold in a heated state or heated by the seller, including food sold by a caterer.
• Two or more food ingredients mixed or combined by the seller for sale as a single item.
• Food sold with eating utensils provided by the seller, including plates, knives, forks, spoons, glasses, cups, napkins, or straws.

“Prepared food” does not include the following. These items are exempt from sales tax:

• Food that is only sliced by the seller
• Food that is only repackaged by the seller
• Bakery items sold by the seller that baked them

Food sold in an unheated state as a single item without eating utensils provided by the seller which is priced by weight or volume