The state of Washington will begin taxing chewing gum and some – but not all – candy products next month.
The state Department of Revenue has posted a list online of nearly 3,000 items that will be subject to tax, as well as another 263 items that are not.
As of June 1, the state sales tax will apply to gum and candy that does not include flour as an ingredient. According to the Department of Revenue, candy subject to the tax can be made with “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.”
Any product that lists flour as an ingredient on the nutritional facts label is not taxable as candy.
Lawmakers agreed to extend the tax to treats as a way to help cover a $2.8 billion budget deficit, and preserve funding for some public health, education and human service programs.
Majority Democrats approved a package of increases to bring in $800 million. The first round of increases, including a higher tax on cigarettes, took effect May 1.
Applying sales tax to candy and gum will generate about $30 million in new revenues. Candy makers in Washington can receive a $1,000 tax credit for each worker retained for a calendar year to help offset a potential decline in sales as a result.
Also starting June 1, sales tax will be applied to bottled water, and the tax on barrels of mass-marketed beer will rise. A tax on soda pop will kick in on July 1. (Daily Herald)
