Is Soda Pop Taxable in Ohio?

Pop sales within the state of Ohio fall into an exception category when it comes to taxation. According to Ohio sales tax law, foods sold within the state that are packaged for consumption off the point-of-sale premises are not taxed. However, pop is not considered a food by Ohio's Department of Taxation and, therefore, is taxable.

The state of Ohio only requires the taxation of food and beverage items if they are prepared foods for immediate consumption. At a restaurant, the entire meal, soda pop included, is taxed at the state and local tax rates when consumed on the premises. At the grocery store, most foods are not taxed, but an exception is made for certain non-alcoholic beverages.

In Ohio, a non-alcoholic beverage that contains natural sweeteners or artificial sweeteners is considered a soft drink and taxed at the standard sales tax rate. However, milk beverages and substitute milk drinks such as soy milk, almond milk and rice milk are not taxed, as is also true for drinks containing at least 50 percent juice. Both traditional and diet soda pop contain sweeteners, which makes them taxable beverages. Pop must be taxed both in a restaurant setting and when purchased at convenience or grocery stores.

Within the state of Ohio, the term "soft drink" refers to more types of prepackaged sweetened drinks than carbonated beverages or pop alone. In terms of taxation, a "soft drink" is any beverage with sweeteners that does not fall into the exception categories specified by the state. Technically, mixed beverages such as prepackaged sweetened coffee drinks without milk content, sweetened tea, lemonade and fruit drinks with an actual juice content of less than 50 percent are soft drinks and taxed accordingly.

As of September 2011, the state sales tax rate in Ohio was 5.5 percent for goods and services. Soft drinks are also taxed at this rate. However, local governments may charge an additional sales tax for goods, services and prepackaged sweetened beverages. The highest sales tax rate in Ohio as of September 2011 was 8.5 percent.