Thursday, October 18, 2007

Something Fishy swimming in the Cola

In Ohio, when food is prepared "to go", the state does not add sales tax. So, order a menu item costing $5.09 "to go", you pay $5.09. Order the same item "dine in" and you pay $5.42 (Hamilton County).

But, introduce the "combo meal," wherein the restaurant bundles food at one price, and things get tricky.

The state TAXES the beverage but not the food. In a bundled price, what does each item cost?

The Hopple & Colerain Wendy's sells the Turkey Swiss Frescata combo (sandwich, medium fry, medium cola) for $5.09 + the sales tax on the beverage. Recently (09.30.07), at the Hopple & Colerain location, this totaled $5.39. Therefore, the sales tax paid was $.30.

If $.30 was the sales tax on the beverage, then the beverage was priced at $4.62. It follows then, that the sandwich and medium fry, which WERE NOT taxed, make up the balance of $.77, for the $5.39 total.

This seems fishy because a medium cola is NOT priced at $4.62 on Wendy's regular menu. Rather, it is priced at $1.69. Sales Tax on $1.69 SHOULD BE $.11. Extending this logic, the price of the combo meal should be $5.09 + $.11 or $5.20.

So, in a combo meal, the state takes $.19 ($.30 - $.11) more on the cola than if the cola were ordered by itself. This is some kind of margin! Could the state of Ohio be engaging in subterfuge here? Probably: subterfuge seems to stand as the rule rather than the exception in the tax code.

The Cliff Blog recommends keeping bottled water nearby when ordering "to go" food. NEVER order combo meals- order FOOD only and skip the cola. All indications are, Columbus is Clueless about how Buckeyes want their money spent/government run. The more they receive, the more they screw it up.

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