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Will Vermont Tax Candy and Soda?

  • Apr 29, 2015 | Gail Cole

 The candy in this Vermont country store could soon be subject to sales tax.

Subject candy and soda to Vermont sales tax and Vermont property tax could go down. That’s the theory behind the omnibus health care bill amendment that was overwhelmingly approved last week by the House Ways and Means Committee.

The measures would do the following, effective July 1, 2015:

  • Apply Vermont state sales tax to soft drinks and candy.
  • Extend the meals and room tax to “food or beverage sold through a vending machine”

The imposition of the above taxes would allow the nonresidential property tax rate for FY 2016 to drop from $1.59 to $1.515 “per $100 of assessed value.”

In addition, the measure would increase taxes on tobacco products:

  • From $2.29 to $2.38 per ounce of snuff
  • From $2.29 to $2.38 per ounce of new smokeless tobacco
  • From $2.75 to $2.85 per package of cigarettes

Read the amendment draft of S. 139, as passed by the Ways and Means Committee.

Would changing sales tax on these and other products create headaches for your business? Learn how an automated sales tax solution works.

photo credit: candy, candy, more candy via photopin (license)

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.