The Department of Revenue has announced an upcoming sales tax rate change for the Town of Cloverdale. Effective September 1, 2013, Cloverdale will impose a 1% food-and-beverage tax. With a state rate of 7%, the total rate of sales tax on food and beverage will be 8%.
House Bill 1070 authorized the town council of Cloverdale to impose the 1% sales tax on taxable food and beverage transactions. Pursuant to the bill, revenue generated by the tax "must be used to reduce the towns' actual property tax levy (but not maximum permissible levy) or for economic development purposes… ."
If you sell food and beverages in Cloverdale, it's worth reading the bill in its entirety. Not all food is subject to the tax. Food and beverage that is exempt from the state gross retail tax, for example, is not subject to the new 1% food-and-beverage tax.
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