This Halloween, the state of Illinois is offering more trick than treat.In an effort to meet expenses, the state has recharacterized the way that it taxes candy for purposes of sales tax.
The state previously characterized candy as food, which meant that it was subject to a lower sales tax. The new tax rules, which took effect Sept. 1, however, redefined candy as, well, candy, and subjected it to the full state and local sales tax.
That means that in Chicago, which currently bears the not so desirable title of "highest taxed city in the nation," you can expect to pay 10.25% in sales tax for a candy bar.
But not just any candy bar.
In a twist that has confused consumers (and defied explanation), the tax specifically exempts candy which contains flour. The actual text of the act specifically states:
"candy" means a preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruits, nuts or other ingredients or flavorings in the form of bars, drops, or pieces. "Candy" does not include any preparation that contains flour or requires refrigeration.
So what does it mean for shoppers this Halloween season? You'll have to read labels.
Candy corn? Candy. Reese's Peanut Butter Cups? Candy. Snickers? Also candy. But Milky Way? Not candy. Twizzlers? Also not candy: Twizzlers and other forms of licorice candy contain flour.
GO HERE to read more.
No comments:
Post a Comment