No more candy tax in Washington state

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by NATALIE SWABY / KING 5 News

Bio | Email | Follow: @NSwabyKing5

KING5.com

Posted on December 2, 2010 at 3:08 PM

Updated Thursday, Dec 2 at 4:13 PM

SEATTLE -- Starting Thursday, businesses have to stop collecting sales tax on candy, gum, and bottled water. The next tax on sodas also goes away.

Voter approval of Initiative 1107 is now in effect. It takes 30 days after the election for that happen.

It means the two cent excise tax on carbonated beverages ends. As for candy, gum, and bottled water, you will no longer have to pay sales tax on those items. For most of King County the sales tax is 9.5 percent.

Kristi Holmes is the owner of The Confectionery, a candy shop in Seattle's University Village. She is happy to see the candy tax go because she said it cut into her business.

"It was confusing to customers because the tax wasn't clear. One item like malt balls would have no tax where as jelly beans were taxed, licorice - no tax, sour candies were taxed," said Holmes.

The State Department of Revenue said without the candy tax, the state general fund revenues will be reduced by an estimated $352 million over the next five years.

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