Quick Tax Quiz: When Is a Candy Bar Not a Candy Bar?

May 16, 2010

Washington State has recently excluded candy from the food sales tax exemption, effective June 1. The Department of Revenue issued a list of over 3,500 “candy and candy-like products” showing which ones are taxable and which are still exempt. (One wonders how long Washington State government officials spent studying candy. Were taste tests required, or merely an examination of products’ ingredient labels?)

The distinction between taxed candy and exempt candy seems like it will be confusing for retailers and consumers. Can you figure out which of the following 10 items are taxable as “candy and candy-like products”?

Click your choice to find out whether it’s correct or skip to the answer.

A) Exempt from tax: Brach’s Milk Chocolate Covered Raisins: Brach’s Chocolate Covered Blue Diamond Almonds: Hershey Powdered Cocoa for Baking: Kraft Bakers Chocolate, Unsweetened
Taxable:
Kit Kat; Twizzlers Strawberry Twist; 3 Musketeers Bar; Milky Way Bar; Milky Way Midnight Bar; Sugar Free Pop Rocks, Strawberry

B) Exempt from tax: Sugar Free Pop Rocks, Strawberry; Kraft Bakers Chocolate, Unsweetened
Taxable:
Brach’s Milk Chocolate Covered Raisins: Brach’s Chocolate Covered Blue Diamond Almonds: Kit Kat: 3 Musketeers Bar: Milky Way Bar: Milky Way Midnight Bar: Hershey Powdered Cocoa for Baking: Twizzlers Strawberry Twist

C) Exempt from tax: Brach’s Milk Chocolate Covered Raisins: Brach’s Chocolate Covered Blue Diamond Almonds: Kit Kat: 3 Musketeers Bar: Milky Way Bar: Milky Way Midnight Bar: Hershey Powdered Cocoa for Baking: Kraft Bakers Chocolate, Unsweetened
Taxable:
Twizzlers Strawberry Twist; Sugar Free Pop Rocks, Strawberry

D) Exempt from tax: Kit Kat; 3 Musketeers Bar; Milky Way Bar; Milky Way Midnight Bar
Taxable:
Brach’s Milk Chocolate Covered Raisins; Brach’s Chocolate Covered Blue Diamond Almonds; Hershey Powdered Cocoa for Baking; Kraft Bakers Chocolate, Unsweetened; Twizzlers Strawberry Twist; Sugar Free Pop Rocks, Strawberry

E) Exempt from tax: Kit Kat; Twizzlers Strawberry Twist; Milky Way Bar; Hershey Powdered Cocoa for Baking
Taxable: Brach’s Milk Chocolate Covered Raisins: Brach’s Chocolate Covered Blue Diamond Almonds: 3 Musketeers Bar: Milky Way Midnight Bar: Sugar Free Pop Rocks, Strawberry: Kraft Bakers Chocolate, Unsweetened


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