Subject businesses are any retailer within Wake County that are subject to sales tax imposed by the State of North Carolina under section 105-164.4(a)(1) of the North Carolina General Statutes, which would include: 

• Restaurants
• Cafes
• Cafeterias*
• Coffee shops
• Grills
• Snack bars/carts
• Lounges
• Bars
• Taverns
• Mobile vendors
• Vendors at sporting, cultural and entertainment events
• Fast food establishments
• Drive-in establishments
• Private club dining facilities
• Caterers
• Independent bakeries
• Grocer and independent delicatessens
• Convenience store/marts
• Luncheon counters/soda fountains at drugstores
• Pharmacies and other general retail stores
• Nightclubs
• Wet bars
• Concession stands
• Ice cream parlors/shops
• Employee cafeterias that charge for food and beverages
• Any other establishment, place of business or enterprise maintaining facilities, equipment, services or inventory for the sale of any type or kind of prepared food, food product, meal or beverage sold to consumers.  

*Effective January 1, 2014, prepared food sold to a college student in a dining room, cafeteria, or similar establishment regularly operated by or on behalf of an institution of higher education in this State, including an institution of the University of North Carolina, a private institution of higher education, or by student organizations thereof, is subject to the Wake County Prepared Food and Beverage tax. 

Any food or beverage which is prepared to the order of the purchaser or which is cooked and/or maintained at or near the cooking temperature or kept at or above room temperature to make it or for it to remain palatable and suitable prior to sale, shall be considered to be made available for immediate consumption and subject to the Prepared Food and Beverage Tax. 

• Sales from vending machines are specifically exempt from the Prepared Food and Beverage Tax.
• Sales of prepared food and beverages are subject to the Tax unless prepared by someone other than the retailer for immediate consumption and merely placed on display for sale purposes. Examples include prewrapped sandwiches, packaged crackers, prepacked ice cream, etc.
• Sales of prepared foods and beverages available for immediate consumption that are sold on a "take-out", "to-go" or delivery basis are subject to the Prepared Food and Beverage Tax.
• Any alcoholic or nonalcoholic beverage sold by the drink or as part of a meal is subject to this tax. Exceptions would be soft drinks and alcoholic beverages (i) purchased in unopened package form (i.e., six pack, cans, bottles, cases) and (ii) not to be consumed on the premises of the retailer or where otherwise served by a caterer. Examples of taxable beverages include a bottled drink sold by a caterer or bar for opening and consumption by a customer on the retailers premises or whenever served by a caterer and orange juice and milk served at a fast food establishment; nontaxable beverages include can drinks sold by a convenience store and a bottle of wine sold by a retailer for "take-out" by the consumer.
• Prepared Food and Beverage sales made to the general public or employees that are paid for, directly or indirectly, by cash, charge card, payroll deduction, meal ticket, voucher or other means are subject to this tax and must be collected by the retailer or employer.
• Sales derived from Salad Bars (i.e. cut-up fruits and vegetables) sold in various sized servings, usually by the pound or plates are subject to this tax.
• Salad items such as potato salad, coleslaw, macaroni, bean and congealed salads including chicken salad, etc., and sliced or unsliced meats that the retailer has not altered by heating or combining two or more foods (i.e. retailer is merely repackaging), which are sold in carry-out containers, are not subject to this tax; any of the forgoing sold as part of a meal, deli tray or otherwise as part of a steamed table products is subject to this tax.
• Whole pies and cakes altered on-site in any way (icing added, decorated, baked, etc.) are subject to this tax.   

Food and beverages prepared by an independent bakery are subject to this tax if baked, decorated or altered in any way on the retailer's site.

Bakery items (bread, rolls, buns, biscuits, bagels, croissants, pastries, donuts, danishes, cakes, tortes, pies, tarts, muffins, bars, cookies and tortillas) sold without eating utensils by an artisan bakery are exempt from the Prepared Food and Beverage Tax.  An "artisan bakery" is a bakery that derives over 80% of its gross receipts from bakery items and whose annual gross receipts, combined with the gross receipts of all related persons as defined in NCGS 105-164.13B(a)(4), do not exceed $1,800,000.

Any food or beverages prepared by a caterer or food delivery service (regardless of the primary place of business or place of food preparation) and served within Wake County is subject to the Prepared Food and Beverage Tax.  All charges are subject to this tax except gratuities of 20% or less that are separately stated on the invoice and distributed to service personnel.

Any food or beverage prepared by caterers or food delivery services located within Wake County to be served outside the County will not be subject to the Prepared Food and Beverage Tax.

Examples of food and beverages subject to this tax include hot dogs (whether placed on rotisserie by customer or retailer), brewed coffee, fountain drinks and dip ice cream, etc. Prepackaged sandwiches prepared by someone other than the retailer are not subject to this tax.

All temporary food and beverage vendors that operate as such, must make a fifty dollar ($50) cash prepayment at least one (1) week in advance prior to commencement of business to the Wake County Department of Tax Administration and any additional tax monies due must be paid with the Prepared Food and Beverage Tax Return. A refund will be made if determination is made by the Tax Administration office that the tax amount due (plus penalties, if any) is less than the original prepayment amount. 

Sales of prepared food and beverages in independent delicatessens and in the delicatessen or similar department of a grocer or other diversified retail establishment that are subject to taxation under the Ordinance shall be limited to the sale of any Prepared Food or Beverage that is (i) heated when sold, (ii) sold as a single serving, or (iii) sold as a steamed table product, (iv) altered in any way (except sliced or repackaged) or, (v) any two or more foods and or ingredients combined to make a single item sold as a single serving or sold as a whole packaged item or sold in bulk. For purposes of the Regulation, a "steamed table product" shall mean any one or more foods and beverages sold collectively as a meal available for immediate consumption, including without limitation both heated and cooled foods and beverages. 

• Deli trays (meat, cheese, fruit, etc.) are subject to the Prepared Food and Beverage Tax.
• Sales derived from Salad Bars (i.e. cut up fruits and vegetables) sold in various sized servings, usually by the pound or plates are subject to this tax.