In New York (at least when I worked as a cashier) prepared ready-to-eat food, candy and fizzy drinks were taxable. Unprepared food was not. For example, hamburger meat and a bag of hamburger rolls were not taxable. But if you bought a hamburger on a roll, hot and ready to eat, you would pay tax. It kind of makes sense, as food is not really a luxury, but having someone prepare your food for you is. And candy and fizzy drinks aren't a necessary part of the diet. Oh I just remembered, juice was not taxable, but drinks were. I believe a drink was defined as having less than 10% real fruit juice.