Celebrating National Donut Day: A Sweet Treat and a Sales Tax Twist

National Donut Day is upon us, and it’s the perfect excuse to indulge in one of the most beloved treats across the country. Whether you spell it “donut” or “doughnut,” there’s no denying the universal appeal of these delicious, deep-fried confections. As you prepare to celebrate, it’s worth considering a less tasty but equally important aspect of your purchase: sales tax.

National Donut Day, celebrated on the first Friday of June, has a rich history dating back to 1938. Established by The Salvation Army in Chicago, it honors the women who served donuts to soldiers during World War I. These “Doughnut Lassies” provided a small comfort of home to the troops, and their legacy lives on today.

From classic glazed to gourmet creations topped with everything from bacon to matcha, there’s a donut for every palate. Popular chains like Dunkin’ and Krispy Kreme often offer special deals or even free donuts to mark the occasion, making it a highly anticipated event for donut lovers everywhere.

While enjoying your donut, have you ever considered the sales tax applied to your purchase? Sales tax can vary widely depending on where you are in the United States, impacting the final price of your sugary treat. Here are a few things to keep in mind:

• State and Local Variations: Sales tax is determined at the state level, but many localities (cities and counties) can impose additional sales taxes, causing the rate to vary significantly.
• Food Tax Exemptions: Some states exempt food from sales tax, while others tax it at a reduced rate. For instance, donuts purchased at a grocery store may not be taxed in some states, while those bought at a bakery or restaurant are.
• Particular Circumstances: There are interesting nuances in tax laws. In New York, buying a single donut to go is considered a non-taxable grocery item. But if you eat it on-site, it’s taxable as restaurant food.
• Holiday Specials: During events like National Donut Day, when donuts might be free or discounted, businesses may handle sales tax differently. Sometimes, the tax is still applied to the item’s regular price before the discount.

Ultimately, National Donut Day is about enjoying a sweet treat and learning more about the tax that comes with it. So, whether you’re grabbing a free donut from a big chain or buying a dozen from your local bakery, take a moment to savor the flavor and history behind this delicious day.

About Davis Davis & Harmon LLC – Sales Tax Experts: Headquartered in Dallas, Texas, Davis Davis & Harmon LLC – Sales Tax Experts specializes in sales/use tax refund recovery and audit defense. Our team of consultants is comprised of former Big 4 sales tax consultants and state sales tax auditors. Each of our consultants has 15 to 20 years of experience, providing our clients with access to a highly specialized team of sales/use tax professionals. At Davis Davis & Harmon, LLC, we are committed to maintaining the highest standards in our talent pool. We work hard to meet our clients’ needs by ensuring that you view our firm as an extension of your company and a member of your team.