Saturday, May 15, 2010

New Colorado State Law- 2.9% Tax on Soft Drinks and Candy

This is not an update on our family, but did you know that Colorado has a new sales and use tax law that tacks a 2.9% tax onto certain candy and drinks? I learned that from a sign posted on the door of a grocery store the kids and I visited today. The law is a bit confusing, so here are some quotes from the Julesberg Advocate and a link if you want to read more details from the article. The law makes the following definition of candy:

“Candy, meaning a preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruit, nuts, or other ingredients of flavoring in the form of bars, drops or pieces. Candy does not include any preparation containing flour and shall require no refrigeration.”

The confusion begins when merchants begin to look on their shelves. According to the law’s language, candy bars such as Twix and Whoppers would not be taxable, but a Butterfinger, and Reeses chips (used in baking) are. Not only is the definition of candy confusing, so is the state’s definition of soft drinks.

“Soft drinks, meaning non-alcoholicc beverages that contain natural or artificial sweeteners. Soft drinks do not include beverages that contain milk or milk products, soy, rice or similar milk substitutes or beverages that contain 50 percent or more vegetable or fruit juice by volume.”

Under these guidelines, Vitamin Water is taxable, but a Starbucks Coffee Frappucino is not as it contains milk.


http://www.julesburgadvocate.com/ci_15023073

Ironically, the State of Colorado is supposedly going to use the revenue from this tax to reduce/prevent deeper cuts in funding for schools and colleges. Hmmm...

I don't know about you, but that makes a frappuccino sound pretty tasty right about now!

No comments:

Post a Comment