Wednesday September 5, 2012

City Approves Candy Tax

Lakewood, CO — A previous sales tax on candy is being replaced with a tax that is more in line with the state tax structure, according to Lakewood, CO, city council.

The three percent sales tax applies to candy items, defined as any food prepared with “sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruit, nuts, or other ingredients or flavorings in the form of bars, drops, or pieces.” However, this does not include products containing flour or that require refrigeration.

The ordinance was enacted to clarify a 2009 rule that differentiated products based on at-home and immediate consumption.

The NCA expressed disappointment in the news, saying: “The NCA is disappointed with the passing of the candy tax in Lakewood. This tax hurts confectionery companies and the 1,000-plus jobs that depend on the growth of a healthy industry in Colorado. A taxation system like Lakewood has embraced not only doesn’t grow jobs, it creates a disincentive for operating a business altogether.”