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State Announces New Tax Rule Meant To Help Food Truck Vendors


California tax officials are looking to streamline the lunchtime rush for food-truck feasts with a new rule July 1.

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“As the food-truck industry continues to motor its way into the mainstream, the California State Board of Equalization is serving up an amended regulation that’ll make it that much easier for Californians to enjoy the culinary creations being borne out of this ever-growing industry,” according to BOE officials in a news release.The Nom Nom truck, featured on Food Network Show Food Truck Wars.

The new rule really is meant to streamline things for vendors, but customers might find things easier, an official said.

“We want to help California businesses be successful,” said Board of Equalization member George Runner. “Our new regulation will make life a bit simpler for California’s fast-growing mobile food industry and more convenient for their customers, too.” 

Starting next month, all pricing posted on food truck windows is now presumed by tax officials to include sales tax.

“So there’s no more digging around for that extra nickel or quarter to cover the tax portion of your bill,” officials said in a news release. “It also allows food truck owners an easier way to conduct their pricing.”

The BOE is making an announcement about the move in an effort to raise awareness about the regulation, and the BOE itself, the officials said, noting the food truck industry is fast-growing and owners aren’t always aware of the necessary regulations.

Runner is the BOE representative for the district including the Santa Clarita Valley, and will be at the announcement Friday in Sacramento.

Related: George Runner Hosts Ribbon Cutting At Santa Clarita Tax Office

The move is an effort by the state to keep up with a business that reported more than $1 billion in sales last year, according to an IBISWorld business report.

There were more than 30,000 food trucks with more than 35,000 employees in 2013, according to the same report.   

It’s meant to make it easier for business owners who travel to cities, often several times a day, which have different sales tax rates.

Food truck owners still have the option to post their prices as a before-tax cost, but the rule was intended to make their operations easier to run, said an official who spoke on background because they were not authorized to talk to media.

The rule was adopted unanimously at the March 21 Board of Equalization meeting.

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State Announces New Tax Rule Meant To Help Food Truck VendorsKHTS AM 1220 - Santa Clarita News - Santa Clarita Radio

Article: State Announces New Tax Rule Meant To Help Food Truck Vendors
Source: Santa Clarita News
Author: Perry Smith