This creates a need for the law to distinguish between grocery stores and restaurants, leading to artificial barriers to innovation within the marketplace.
Laws should be simple, and create a level landscape on which people can make design choices motivated by utility, instead of adherence to the unnatural incentive landscape of a highly-varied legal system.
It only takes O(1) effort to adapt one’s brain to nature, and to the set of societal arrangements that naturally arise within nature. It takes O(N) effort to adapt one’s brain to new sets of rules that change the incentive landscape, where N is the number of times the rules change.
NE has the same no-grocery tax rule. A handful of states have no sales tax in general (I believe SD and either NH or VT for example) and many, if not all, won't tax groceries purchased with whatever food stamps are called in the respective state