Due to the COVID-19 pandemic, the restaurant industry has experienced a greater reliance on take-out orders and food delivery services. Therefore, the Michigan Department of Treasury has issued additional guidance with respect to the sales and use tax treatment of food containers purchased for take-out orders and food delivery services. In general, food containers used to deliver a meal are treated as an exempt sale for resale if that container will later be sold to the end-user. Food containers are generally treated as resold to the consumer. Examples of food containers include, but are not limited to, to-go or carryout containers, food sleeves and other wrappers, and paper bags. These items are generally exempt from sales tax when purchased for resale by restaurants.
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