Snickers Bars are About to Change

by Jeffrey Miron on May 31st, 2010
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Candy is candy, right? Not if you’re trying to tax it. That’s when the definition gets a bit sticky. Suddenly a Snickers bar is candy but a Twix isn’t.

This is an issue as states like Colorado and Washington move to tax sweets to help balance their budgets.

According to Washington state, which just approved a candy tax, candy is a preparation of 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.

So put into practice, that means Reese’s Peanut Butter Cups are taxable. Mike and Ike candies are taxable. Kit Kat is exempt.

That’s because Kit Kats have flour in them, explains Patrick Gillespie of Washington state’s Department of Revenue. And flour is the not-so-secret ingredient that determines whether something is candy or not — at least if you’re the taxman. If it has flour, it’s not candy.

I predict the recipe for Snickers will soon include flour. The rest of the story is here.

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Copyright 2010 Jeffrey Miron  |  Created by Brian D. Aitken
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