Many states have exemptions or lower rates that apply to food, but sometimes those rules don’t apply to candy. The Streamlined Sales Tax Program (SSTP) set out to create uniform definitions of items in order to simplify sales and use tax collection and administration by retailers and states.
What the SSTP considers to be candy may differ from what you may believe to be candy. Are you a Candy Tax Expert? Take Our Quiz to find out where you stand in comparison to your sweet-toothed friends!
For example, did you know that:
- In Indiana, marshmallow creme is tax exempt, but marshmallows themselves are taxable as candy.
- Trail mix with just granola is tax exempt because it’s considered food; however, if you put chocolate into it, then it is considered a candy in many states and therefore, taxable.
- In Texas, single serving snacks (2.5 oz. or less) are taxable; however, more than one serving is tax exempt because it is considered a food item.
Tax rules can be complicated. Whether they’re candy-related or not, the Taxware Research team is here to help! Our Taxware Research team is dedicated to tax compliance research in all U.S. and Canadian jurisdictions and worldwide. Staying up-to-date on the intricacies of ever-changing tax rules is what sets our software and services apart.
Have questions about sales tax rules? Ask a Taxware Expert today.
