Omaha Restaurant Tax

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Brad
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Omaha Restaurant Tax

Post by Brad »

I was surprised to learn today, pre-made sushi in the cold case at HyVee requires the restaurant tax? No a big deal as it was only 22 cents, I was just surprised to see it on my receipt. Where do they draw the line for restaurants? I didn't order it, it wasn't served or handed to me, I checked myself out, and ate it in the car. Nothing really restaurant about it.

No judging my lunch choices, its close, quick and easy.

Here is my receipt:
HyVee.jpg
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Garrett
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Re: Omaha Restaurant Tax

Post by Garrett »

Brad wrote: Wed Jun 18, 2025 5:49 pm I was surprised to learn today, pre-made sushi in the cold case at HyVee requires the restaurant tax? No a big deal as it was only 22 cents, I was just surprised to see it on my receipt. Where do they draw the line for restaurants? I didn't order it, it wasn't served or handed to me, I checked myself out, and ate it in the car. Nothing really restaurant about it.

No judging my lunch choices, its close, quick and easy.

Here is my receipt:
HyVee.jpg
It’s any prepared foods, so the various “restaurants” at HyVee all count.
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ChadJK
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Re: Omaha Restaurant Tax

Post by ChadJK »

They tax the tax? Sales tax is applied after the restaurant tax is applied?
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Garrett
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Re: Omaha Restaurant Tax

Post by Garrett »

ChadJK wrote: Wed Jun 18, 2025 7:14 pm They tax the tax? Sales tax is applied after the restaurant tax is applied?
Looks like "Occupation Taxes" like the restaurant tax are indeed subject to sales taxes

https://revenue.nebraska.gov/government ... tion-taxes
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djc311
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Re: Omaha Restaurant Tax

Post by djc311 »

Garrett wrote: Wed Jun 18, 2025 7:36 pm
ChadJK wrote: Wed Jun 18, 2025 7:14 pm They tax the tax? Sales tax is applied after the restaurant tax is applied?
Looks like "Occupation Taxes" like the restaurant tax are indeed subject to sales taxes

https://revenue.nebraska.gov/government ... tion-taxes
Another reason why I do not like the restaurant tax and why it was frustrating that it was never removed. Regardless of the reason, it was stated that it would be.

Nonetheless, I occasionally get a fountain pop at HyVee gas that I fill on my own - they literally do nothing as far as prepping it (at least they made your sushi) and they charge the restaurant tax on it. It's a joke and IMO it should not be on there. Sure, it's $0.03, but there was a day that a fountain drink sold for $1 it was $1 at the register. I'm not even sure why they get to (or choose to) charge tax at all on it. It's not like you're going through the drive-thru at McDonald's and they technically "prepared" your drink.

If they sell the fountain drink I serve myself for $1, it should be a $1. Or, charge tax on the cup cost. But to pay $0.10 which includes sales tax plus restaurant tax is a rip. Is this how we dig ourselves out of the padded firemen retirement paychecks? :lol:

If I really want to complain, when you buy 2 (or more), then the taxes must get calculated at decimal rates because two fountain drinks that are $1/each actually cost $2.19. So $0.09 on the second one, even though the drinks are both charged at the same $1 price.
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Busguy2010
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Re: Omaha Restaurant Tax

Post by Busguy2010 »

Doesn't bug me much. I don't eat out much anyway, but if I can throw a half dollar at the city now and then, its all good. We're becoming a big city, and it all requires funding from somewhere. I think its been one of the best revenue sources that has affected the individual extremely little. I don't care at all if it was promised to be removed, but wasn't. It probably never will be, for good reason.
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skinzfan23
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Re: Omaha Restaurant Tax

Post by skinzfan23 »

I kinda agree. To the average person the little bit of money paid into this tax isn't that much especially if eating fast casual or fast food. However, it does make a huge difference when you have a big event like a wedding. I remember in 2012 for our wedding, we had to pay the tax on the catered bill, which the bill was several thousand dollars (thankfully our parents helped with that :D )
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Brad
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Re: Omaha Restaurant Tax

Post by Brad »

Yeah, I’m not complaining about paying 22 cents, just more curious about how broad it was. I did find it interesting when Chad pointed out that the restaurant tax is then taxed itself.
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BRoss
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Re: Omaha Restaurant Tax

Post by BRoss »

Brad wrote: Wed Jun 18, 2025 10:59 pm Yeah, I’m not complaining about paying 22 cents, just more curious about how broad it was. I did find it interesting when Chad pointed out that the restaurant tax is then taxed itself.
I remember having to program it in the POS of our stores where I worked at the time when it was started. It was not as straightforward as normal. Luckily our systems supported it.
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Big E
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Re: Omaha Restaurant Tax

Post by Big E »

Brad wrote: Wed Jun 18, 2025 10:59 pm Yeah, I’m not complaining about paying 22 cents, just more curious about how broad it was. I did find it interesting when Chad pointed out that the restaurant tax is then taxed itself.
Also of note a “mandatory gratuity” (such as a 20% fee on a group of 8 or more, for example) is also a taxable item.

So $200 tab + 20% mandatory tip then gets
the restaurant tax which then gets the sales tax.
Stable genius.
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Re: Omaha Restaurant Tax

Post by djc311 »

Going back to my point of paying this tax on self-serve pop/soda drinks... does that really make sense? Does HyVee simply apply it because they didn't want to mess it up? I don't see how it should apply if they literally are doing nothing as far as preparing the drink. You don't pay the restaurant tax on a bottle of pop. It's like you're taxing yourself to make your own food (or drink).
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nebugeater
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Re: Omaha Restaurant Tax

Post by nebugeater »

djc311 wrote: Thu Jun 19, 2025 12:58 pm Going back to my point of paying this tax on self-serve pop/soda drinks... does that really make sense? Does HyVee simply apply it because they didn't want to mess it up? I don't see how it should apply if they literally are doing nothing as far as preparing the drink. You don't pay the restaurant tax on a bottle of pop. It's like you're taxing yourself to make your own food (or drink).

Question because I have no idea. Does the restaurant tax apply to a fountain soda purchased at a convenience store in Omaha? As I see it, this would not be any different? Does the restaurant tax apply to a slice of pizza you buy at Say Casey's that is take and eat? Have purchased both many times in the Omaha jurisdiction and really have no idea if that tax applies.
For the record  NEBUGEATER does not equal BUGEATER    !!!!!!!
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Busguy2010
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Re: Omaha Restaurant Tax

Post by Busguy2010 »

^ Huh, I really never considered/would have thought a slice of pizza or a hot dog from a gas station would apply. Coffee? I've just never checked. I never take a receipt from a gas station anyway.

It probably applies to everything that isnt pre packaged when it arrives at the store. It does seem to be a gray area, but again, im not gonna worry about a couple pennies on the dollar if it helps fund the city. Also, anybody who comes here from outside the city also pays it, so that's a good way to double up.
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Re: Omaha Restaurant Tax

Post by zippy »

Google wrote: AI Overview
In Nebraska, most baked goods are generally exempt from sales tax as long as they are not sold in a heated state or served with eating utensils, according to the Nebraska Department of Revenue (.gov). This means items like donuts, cakes, pies, and bread, when sold at room temperature or cooler and without utensils provided by the seller, are not subject to sales tax.
I recall reading somewhere that most baked goods are exempt from State sales tax. So I looked it up. However, I don't know what the city's take on that is.
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Re: Omaha Restaurant Tax

Post by bbinks »

Garrett wrote: Wed Jun 18, 2025 6:07 pm
Brad wrote: Wed Jun 18, 2025 5:49 pm I was surprised to learn today, pre-made sushi in the cold case at HyVee requires the restaurant tax? No a big deal as it was only 22 cents, I was just surprised to see it on my receipt. Where do they draw the line for restaurants? I didn't order it, it wasn't served or handed to me, I checked myself out, and ate it in the car. Nothing really restaurant about it.

No judging my lunch choices, its close, quick and easy.

Here is my receipt:
HyVee.jpg
It’s any prepared foods, so the various “restaurants” at HyVee all count.
I don't buy the pre packaged Amigos meals at HyVee, but those are presumably also included.
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Busguy2010
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Re: Omaha Restaurant Tax

Post by Busguy2010 »

I decided to test this out and buy some pre-made egg rolls from Hy-vee.

The original price is 4.99. It is indeed taxed at a rate of 2.5%

That 5.11 is then taxed at a rate of 5.5%.

The 5.11 is again taxed at a rate of 1.5%

So the 4.99 egg rolls ended up costing me 5.47.

I dont understand the breakdown. But the tax was nearly 10% of the original price. Seems kinda steep, but its still just 50 cents.

The baked bread I bought did not get taxed.
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Re: Omaha Restaurant Tax

Post by ChadJK »

Brad wrote: Wed Jun 18, 2025 10:59 pm Yeah, I’m not complaining about paying 22 cents,
Busguy2010 wrote: Tue Jun 24, 2025 3:22 am ...but its still just 50 cents.
This is how they get you.

:evil:
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Greg S
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Re: Omaha Restaurant Tax

Post by Greg S »

Obviously they are going to tax you one way or the other. At least on this, like sales tax, it's not just Omahan's that pay it.
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Big E
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Re: Omaha Restaurant Tax

Post by Big E »

ChadJK wrote: Tue Jun 24, 2025 2:08 pmThis is how they get you.
Image
Stable genius.
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Busguy2010
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Re: Omaha Restaurant Tax

Post by Busguy2010 »

ChadJK wrote: Tue Jun 24, 2025 2:08 pm
Brad wrote: Wed Jun 18, 2025 10:59 pm Yeah, I’m not complaining about paying 22 cents,
Busguy2010 wrote: Tue Jun 24, 2025 3:22 am ...but its still just 50 cents.
This is how they get you.

:evil:
I just don't eat out enough for it to bug me.

Now, if I was eating out every day, and particularly at a sit down restaurant, where my tab would be significantly higher, then I could see one being mad about it. But the thing is, nobody's forcing anybody to eat out, ever. So I see it as a voluntary contribution.

I just don't understand how it breaks down, and especially why the second and third taxes are on the taxed amount. And also the egg rolls I bought weren't like I went up the the counter and ordered them. They were the ones in the refrigerated area. Then, the bread wasnt taxed. I was always under the impression Hy-vee "fresh baked" their bread in the store, or at least they did at one time. But now that I see it wasn't taxed, maybe I was under the wrong impression.

In the end, I think the tax is deliberately structured to be confusing to the consumer. The fact they break it in three, and then tax things you wouldn't think should apply. I think its made to be confusing, so the consumer just says "aw fxck it, its just 50 cents". At least, like you said, that's how they get me. But again, at least for me, the solution is to just not eat out much.

I'm still interested to see if they'll tax black coffee from a gas station. That would seem to be a reeaallyy gray area. What is coffee? Is it food, is it drink? If its black then it has no calories, so is it just water? If I added sugar and creamer and now it has calories, is it then a food item? My bet is they just tax it all under the umbrella of "ingestion". Interested to find out, so today I'll do a little experiment, even though I almost never eat stuff from the gas station.
Last edited by Busguy2010 on Tue Jun 24, 2025 5:20 pm, edited 1 time in total.
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Busguy2010
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Re: Omaha Restaurant Tax

Post by Busguy2010 »

Greg S wrote: Tue Jun 24, 2025 3:27 pm Obviously they are going to tax you one way or the other. At least on this, like sales tax, it's not just Omahan's that pay it.
That there is the biggest reason I think it's a good thing.

Can't imagine the millions of people just passing through who stop by a Mac D's or gas up and grab a slice of pizza before hitting the road.
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Greg S
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Re: Omaha Restaurant Tax

Post by Greg S »

Busguy2010 wrote: Tue Jun 24, 2025 3:59 pm
Greg S wrote: Tue Jun 24, 2025 3:27 pm Obviously they are going to tax you one way or the other. At least on this, like sales tax, it's not just Omahan's that pay it.
That there is the biggest reason I think it's a good thing.

Can't imagine the millions of people just passing through who stop by a Mac D's or gas up and grab a slice of pizza before hitting the road.
Let alone when we are hosting events like the CWS and Berkshire Weekend among others.
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Busguy2010
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Re: Omaha Restaurant Tax

Post by Busguy2010 »

I went to Kum & Go, or Maverick, rather, and got gas, coffee, and a hot dog. Definitely not in my character to do so, but I wanted to test the tax. And the results are...

The coffee and the hot dog were not taxed. So now the question now is, why would a fountain drink at Hy-vee gas be taxed if other food items from a gas station aren't? Are fountain drinks somehow just inserted into the taxable category? Now its real confusing. A hot dog and coffee doesn't apply, but a soda pop does...

I still agree with the tax, but there seems to be some blurred lines associated with it.
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Re: Omaha Restaurant Tax

Post by GenX »

Busguy2010 wrote: Tue Jun 24, 2025 8:00 pm I went to Kum & Go, or Maverick, rather, and got gas, coffee, and a hot dog. Definitely not in my character to do so, but I wanted to test the tax. And the results are...

The coffee and the hot dog were not taxed. So now the question now is, why would a fountain drink at Hy-vee gas be taxed if other food items from a gas station aren't? Are fountain drinks somehow just inserted into the taxable category? Now its real confusing. A hot dog and coffee doesn't apply, but a soda pop does...

I still agree with the tax, but there seems to be some blurred lines associated with it.
And that’s assuming each retailer is applying and calculating the tax correctly.
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Busguy2010
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Re: Omaha Restaurant Tax

Post by Busguy2010 »

EricHaley wrote: Wed Jun 25, 2025 7:58 pm
Busguy2010 wrote: Tue Jun 24, 2025 8:00 pm I went to Kum & Go, or Maverick, rather, and got gas, coffee, and a hot dog. Definitely not in my character to do so, but I wanted to test the tax. And the results are...

The coffee and the hot dog were not taxed. So now the question now is, why would a fountain drink at Hy-vee gas be taxed if other food items from a gas station aren't? Are fountain drinks somehow just inserted into the taxable category? Now its real confusing. A hot dog and coffee doesn't apply, but a soda pop does...

I still agree with the tax, but there seems to be some blurred lines associated with it.
And that’s assuming each retailer is applying and calculating the tax correctly.
Haha, yeah, its just so all over the place I don't even care if I do or do not end up paying the tax. If sometimes I buy something I contribute a small sum to the city, I'm cool.
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Greg S
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Re: Omaha Restaurant Tax

Post by Greg S »

Busguy2010 wrote: Wed Jun 25, 2025 8:08 pm
EricHaley wrote: Wed Jun 25, 2025 7:58 pm
Busguy2010 wrote: Tue Jun 24, 2025 8:00 pm I went to Kum & Go, or Maverick, rather, and got gas, coffee, and a hot dog. Definitely not in my character to do so, but I wanted to test the tax. And the results are...

The coffee and the hot dog were not taxed. So now the question now is, why would a fountain drink at Hy-vee gas be taxed if other food items from a gas station aren't? Are fountain drinks somehow just inserted into the taxable category? Now its real confusing. A hot dog and coffee doesn't apply, but a soda pop does...

I still agree with the tax, but there seems to be some blurred lines associated with it.
And that’s assuming each retailer is applying and calculating the tax correctly.
Haha, yeah, its just so all over the place I don't even care if I do or do not end up paying the tax. If sometimes I buy something I contribute a small sum to the city, I'm cool.
The same happens with the food tax exemption. By rule if you buy a microwave hamburger and pay for it before microwaving in the store, it's exempt from sales tax. If you pay for it after microwaving in the store, it's taxed. Found this out in college in Lincoln from a gas station near Abel Hall. Have noticed convenient stores have different ways of applying sales tax on food and drinks.