• Report:  #88306

Complaint Review: McDonald's - Edinburgh Indiana

Reported By:
- Shelbyville, IN,

Anywhere, USA Edinburgh, Indiana, U.S.A.
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We recently visited a McDonald's in our state and noticed something very interesting on our receipt. McDonald's charges a "Carry Out Tax" and a "Eat In Tax". This is above and beyond the cost of the food and the state tax. Where do they get off doing this?! And the fact that they call it a "Tax" is very interesting because I will stake my life that they do not turn it in to the state or federal government!

I think that we should all boycott McDonald's for this. I myself will never eat there again because I REFUSE to pay extra for eating their food. And it isn't that good anyway. So let's all stop eating at McDonald's and see how fast they stop charging that "Tax"!!


Shelbyville, Indiana

8 Updates & Rebuttals


In Some States There is a Difference

#2Consumer Comment

Fri, December 08, 2006

The register is probably meant to be used in any of the 50 states. In California, for example, cold food is not taxed if not consumed at the store. Hot food is taxed whether or not it's take-out. Soda is always taxed. So an "eat-in" tax might be higher than a take-out tax depending on what you order. Dont blame McDonald's, blame the greedy politicians instead.


Uh, Mary...

#3Consumer Comment

Thu, December 07, 2006

You may work for a company that sells frozen products to McDonald's, but McDonald's doesn't sell those products frozen. They cook and/or reheat them. Duh


Mcdonald's does have frozen food

#4Consumer Comment

Thu, December 07, 2006

I work at the place that makes the Mcdonald's hot cake's and biscuts. They are frozen and when you order at Mcdonalds those items are put on a griddle. So I know those things are frozen and I'm sure other things are to.


Ok, plain and simple

#5UPDATE Employee

Tue, February 21, 2006

This is the way it works. On the register we have two buttons, one for dine-in orders and one for take-out orders. The reason for "eat-in and take-out" is so the employee knows to either put it in a bag or put in on a tray. There is no difference between the two taxes, just the names. I'm a shift manager at a McDonald's, and I've had to answer this question more times than I care to. Also, McDonald's usually gets taxed higher because it's prepared food, instead of frozen food. Get it? Your city's sales tax might be 6%, but there could full well be additional taxes added on because of the nature of the product you're buying. Anyway, just because it's labeled as something different than what you're used to, doesn't mean that they're ripping you off


Mountain Home,
Tax...it's tax

#6UPDATE EX-employee responds

Tue, February 15, 2005

Tax is never charged by the company in question. Tax, because it's tax, is charged by the government. This Dine-in or Carry-out charge is most likely a "luxury" type tax which is charged either by the local or state government. McDonald's has no control over what it charges or how much it charges. It is simply required by law to charge this percentage.


Take in tax is NOT the same as sales tax

#7Consumer Comment

Mon, December 20, 2004

Tax in Virginia is either 5.0% or 5.5%. However, Mcdonalds in charlottesville, VA is charging 9.5% tax. Other food vendors in charlottesville do not appear to be charging this level of sales tax and certainly are not utilizing the title of eat in or take out tax.


This is just a technicality of the cash register system

#8UPDATE Employee

Fri, July 09, 2004

Having worked both front counter and drive through at McDonalds for 1 and a half years, i can tell you that the tax is just NAMED as such because of how the register system runs - If you go through the drive through it says take out tax, if you go inside, it says eat in tax. The tax is *not* different than the regular state sales tax of 4 cents on the dollar - i've had to field questions of this nature a lot at work, but there is no rip off going on. Sorry in advance for the confusion


eat in or carry out

#9Consumer Comment

Tue, June 29, 2004

I was a manager at a McDonalds and we had alot of complaints about being charged tax on "dine in" and "take out" So I decided to investigate it. It turns out that restaurants can charge a hospitality tax in addition to any local taxes and state taxes. Tax can be charged in a restaurant due to it being a "service" not "food" like in a grocery store the Eat in part and take out part are just to determine if the meal is for here or to go. Unfortunatlly the way the computer progrm is set up there is no way to change the location of Eat in or take out. Also in addition you may pay a different tax from one store to another. I currently work in a Boston Market and the location that I am at charges a different tax than one about 5-10 miles away. that is due to the village we are in they charge a higher tax than te large city nearby.

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