The purpose of the proposed changes to Rule Chapter 12A-1, F.A.C. (Sales and Use Tax), is to update, consistent with current statutory provisions: (1) the application of tax on the sale of food products generally sold by grocery stores, convenience stores, supermarkets, bakeries, fish markets, produce markets, and other like places of business; (2) the application of tax on bakery products sold by bakeries, pastry shops, and like establishments; (3) the application of tax on the sale of water or ice; and (4) the application of tax on the sale of food products generally served, prepared, or sold in or by restaurants, lunch counters, cafeterias, caterers, hotels, taverns, or other like places of business. When adopted, these rules will provide for the administration of sales tax relevant to grocery stores, supermarkets, convenience stores, and others that sell grocery items for the following: • Sales of grocery items, both taxable and exempt • Sales of bakery products for consumption on the premises and those sold for consumption off the premises • Sales of taxable soft drinks and other beverages and tax-exempt 100% juice • Sales of hot prepared food items sold by grocery stores • Sales of packages containing both tax-exempt food items and other taxable items These proposed rules, when adopted, will also provide for the administration of sales and use tax relevant to restaurants, lunch counters, cafeterias, hotels, taverns, caterers, transportation companies, tax-exempt organizations, or other places that sell prepared food items for the following: • Meals, drinks, and food items that are taxable when prepared, served, or sold in such places of business • The taxability of food and drinks served or sold in places where an admission is charged • How to tax meals and food items purchased with coupons or other discounts • When gratuities are subject to tax • The exemption for food donated to a food bank or to organizations exempt from federal tax • The exemption from tax on food or drinks furnished as part of a room package by hotels and other public lodging establishments