Candy tax takes effect June 1 in Washington

Candy tax takes effect June 1 in Washington

Candy tax takes effect June 1 in Washington

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by Associated Press and KING5.com

KING5.com

Posted on May 11, 2010 at 7:02 AM

EVERETT, Wash. -  Starting next month, Washington will begin adding sales tax onto the price of gum and most but not all candy products.

For example, Three Musketeers will be taxed but Milky Way will not.

Starburst, Gummi Bears and M&Ms? Yes. Nestle's Crunch and Twizzlers? No.

How will you and retailers know which is which?

The state Department of Revenue has posted a list online of nearly 3,000 items that will be subject to tax. Another 263 items that are not.

What's the difference? Basically, flour. If the candy you like is prepared with flour it will not be subject to sales tax.

The Dept. of Revenue explains it this way:

Candy is a preparation of sugar, honey, or other natural or artificial sweeteners combined with chocolate, fruits, nuts, or other ingredients or flavorings and formed into bars, drops, or pieces. Candy does not require refrigeration. Candy does not include any preparation containing flour.
Flour is made from grain such as wheat, rice, corn, rye, oats, and barley.  Flour does not include flour substitutes, such as starch. Any product that lists flour as an ingredient on the nutritional facts label is not taxable as candy.

Click here for the list of candy products that will be taxed and those products that are similar to candy that will tax exempt (Excel spread sheet).

Also starting June 1, sales tax will be applied to bottled water, and the tax goes up for mass-marketed beer. The soda pop tax kicks in July 1.

 

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