Vermont Committee Considers Sales Tax for Candy, Soft Drinks

While a tax on sugary beverages has floundered in the House, one lawmaker is proposing to do away with the soda and candy sales tax exemption.

March 15, 2013

MONTPELIER - A Vermont state representative has proposed that the current sales tax exemption on soft drinks and candy be revoked, Vermont Public Radio reports. Last month, the House Ways and Means Committee effectively killed a bill that would add a penny-per-ounce tax on sugary beverages, such as soft drinks, sports drinks and sugar-added juices.

State Rep. Jim Masland, who is part of that committee, voted against that tax, but is instead putting forth a measure that would add the sales tax to candy and soda purchases. "At least it's an honest tax. The consumer will see it and that's how it is," he said. "It'll maybe marginally affect obesity rates through a consumption of sugar I hope that it would I don't have any great expectations about that but at least we know what we're taxing and the consumer sees it."

The sales tax talk for candy and soda is included in an overall tax bill currently undergoing revisions in the House Ways and Means Committee. Vermont has joined a national initiative called the streamlined sales tax, which has the future goal of taxing Internet sales. That program defines what constitutes a soft drink and candy bar, for example.

However, those definitions don??t make most sense to retailers who stock candy and soda. Jim Harrison, who leads the Vermont Grocers Association, pointed out that a candy bar with any flour is not considered candy, while juices with less than 50% juice are branded soda. "Do we want to as a state for the relatively small amount of money, you know the soft drink estimates was $3.5, for a relatively small amount of money do we want to add that confusion and cross the threshold of now taxing food?" he asked.

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