A sour treat in Illinois as state taxes Halloween candy
This Halloween, the state of Illinois is offering more trick than treat.In an effort to meet expenses, the state has recharacterized the way that it taxes candy for purposes of sales tax.
The state previously characterized candy as food, which meant that it was subject to a lower sales tax. The new tax rules, which took effect Sept. 1, however, redefined candy as, well, candy, and subjected it to the full state and local sales tax.
That means that in Chicago, which currently bears the not so desirable title of "highest taxed city in the nation," you can expect to pay 10.25% in sales tax for a candy bar.
But not just any candy bar.
In a twist that has confused consumers (and defied explanation), the tax specifically exempts candy which contains flour. The actual text of the act specifically states:
"candy" means a preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruits, nuts or other ingredients or flavorings in the form of bars, drops, or pieces. "Candy" does not include any preparation that contains flour or requires refrigeration.So what does it mean for shoppers this Halloween season? You'll have to read labels.
Candy corn? Candy. Reese's Peanut Butter Cups? Candy. Snickers? Also candy. But Milky Way? Not candy. Twizzlers? Also not candy: Twizzlers and other forms of licorice candy contain flour.
And whose job is it to figure all of this out? Retailers. Adding to pressures in an already weak economic climate, Illinois lawmakers expect retailers to figure out what is -- and is not -- candy for purposes of collecting sales tax.
While larger retailers like Target may have the resources to dedicate to such a huge project, smaller retailers may find themselves in the unlucky position of spending manpower researching what qualifies as "candy" under the new law or dodging the law and hoping to not get caught. The IL Department of Revenue strongly recommends the former as opposed to the latter.
As tax policy goes, it's a ridiculous waste of resources. But it would be unfair to credit Illinois for having the worst sales tax treatment of a candy bar. Two years ago, Iowa passed a much maligned law that stated:
"candy" means a preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruits, nuts, or other ingredients or flavorings in the form of bars, drops, or pieces. Candy shall not include any preparation containing flour and shall require no refrigeration.Mmm, wait a minute... Did that seem eerily similar to you? Apparently, lawmakers in Illinois have been paying very close attention to what's happening in Iowa.
Quite frankly, it's not surprising. In a tough economic climate, lawmakers are increasingly looking to neighboring states for tax ideas... Could the candy tax be coming to your state next?
Reader Comments (Page 1 of 3)
10-27-2009 @ 5:16PM
kesdvd said...
Want to know how to tax things come to the liberal land of illinois they are experts here.
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10-27-2009 @ 8:59PM
GiftCardRescue said...
@kesdvd
Lol calling it the liberal land of illinois
Ouch Illinois texting candy!? Of all things you could atleast hit the people with another gasoline tax. Oh well.
Ben @ http://giftcardrescue.com
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10-28-2009 @ 8:11AM
Tharos said...
Last week, while checking out at JC Penney’s, the clerk asked me if I wanted to round my bill up forty-one cents and give the change to an after school program. I said, “Yes.” When I got home I discovered I paid the Commonwealth of Kentucky sales tax on my charitable contribution.
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10-30-2009 @ 6:59AM
lionel said...
HA HA , THEY SAW YOU COMING, WHAT A SUCKER ! LOL
10-29-2009 @ 11:24PM
The Patriot said...
As Illinois elected criminals charge seniors for bus fares, slash services and tax Halloween candy; they have set themselves up with lucrative pensions. Illinois taxpayers are currently on the hook for 800 million a month just to pay for for pensions. 800 MILLION A MONTH! The Sun Times ran a story on this treason, see link below. The serfs of Illinois just can not seem to muster the spirit of the founding fathers to revolt yet. Distracted and completely consumed by the left right hoax, the two parties are two equal wings of a bird of prey. No tax, fee, fine sticker, toll is too much for these treasonous elite scum. The crime in Chicago is world class, and the politicians are importing more third world rapist, carjackers, gangbangers, and murderers to kill Americans. Then to add insult to injury politicians provide better benefits and rights to these illegal unholy killers, benefits such as welfare, housing, link cards, cell phones, medical coverage are bankrupting the taxpayer. WHY DO ILLEGAL ALIENS AND HOMOSEXUALS HAVE RIGHTS American taxpayers who have paid into the system with blood and money not have? Why aren’t our politicians who don’t pay their taxes in jail with Ed and Elaine Brown? Americans better wake up to the fact that war has been declared on white America.
http://www.citizensforpaulwilliams.com/blog/?tag=illinois-state-pension
Fall of the Republic
http://www.youtube.com/watch?v=F8LPNRI_6T8
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10-30-2009 @ 11:57AM
mif991 said...
Patriot. We the people in California have elected leftist politicians who have been bought up by the unions to work out a similar sweet pension for their members under Gray Davis and now Swarznegger (who disguised as a conservative to get elected and thus became a girly man.) We will go down with you if we don't raise our voices. And yes, they will try to tax us further next opportunity. I don't see a true leader yet over here, but I hope he/she will stand up soon.
10-30-2009 @ 8:03AM
amber said...
So. I have a MAJOR problem with this. My family is all celiacs which means we can't have flour or wheat gluten. So that means that because they have a disease they have to pay MORE to get a sweet whereas others can get candy that is TRULY candy and not pay an extra cent. way to go illinois
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10-30-2009 @ 7:13PM
B said...
What!!?
Maybe you could start a Celiacs Disease rights organization. Everyone else does...
10-30-2009 @ 7:59AM
Joe said...
Illinois should tax the use of oxygen. That way they could get more money. There is oxygen in water, air, and nearly everything else, so they could make an extremely low tax rate and still rake in the money.
At what point do we just hand our paychecks over to the politicians?
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10-30-2009 @ 8:16AM
isabel said...
I remember Halloween when I was young as an exciting holiday and looked foward to it like it was Christimas. The excitement of the costumes, and going out "trick or treating" with my friends. This was a fun and joyous occassion looking at all the dressed up houses through the different streets and going up to the ones that really scared you and then laugh all the way to the other houses discussing everyone's reactions to the frightening event. With all the perverts that society have allowed to exist due to the "lax" judges and laws of this country, this holiday has become frightening itself. No more the trick or treating through your neibohood in your costumes that you have been thinking about throughout the year. Although, the malls do have costume events so kids experience some time of joy on this festive occassion, the excitement of years past are gone. Now lets add the states adding taxes to candy. In today's economy, personal budgets are tight and some parents need every penny to make ends meet. So now Illinois decided to tax candy, so that the Halloween spirit can dampen some more. Add to these events the individuals with the "withcraft" mentality of how the costumes are the work of the devil, etc. This recipe will result in the extintion of a holiday that has a long history background in the United States.
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10-30-2009 @ 8:56AM
Tom said...
REVOLT America - If you want the TRUTH and want to see the unfortunate direction the government (both parties - but moreso the current administration) is taking our once great country - WATCH Glenn Beck on Fox. If you love this country and enjoy your current freedoms - SPEAK UP, Revolt - for the sake of our children and grandchildren, we cannot allow this tyranny to continue !!
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10-30-2009 @ 9:06AM
jaguar6cy said...
AOL will not accept an "Up" vote on this comment so I decided to add my agreement in this reply.
10-30-2009 @ 9:07AM
K said...
Come on tax us poor Americans some more.
We have a bunch of morons running this country.
Wait until,this health care plan passes,your earnings will be taxed by 50 percent.Will you have enough to pay your bills and live?
The insurance companies will go by the wayside then.
The doctors and hospitals,won't be charging you 20 dollars for a tylenol anymore.
Health care workers and doctors may have to find a new line of work.
Thay is why health insurance is so costly,overcharging patients
and supporting welfare mothers,that keep having children and keep beating the system.
How are we going to afford this?
It is sad when you have to ask China to borrow money?
this shows the country is almost bankrupt and we will become a third world country and America will fall.
With all the money spent blasting the moon,maybe washington,
should of used that money wisely for the american people.
This is my opinion!
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10-30-2009 @ 9:11AM
Sheila said...
YOUR right. Just like I had gone into Target, around the 1st of oct- THEY HAD CHRISTMAS stuff all over . out for sale. Couldnt belive it.I remember It was right after Thanksgiving. Thats when all the fun Started. The stores put the christmas things out . IT was fun Happy. NOw Buy the time christmas comes. your warn out. the fun seems gone. Christmas is a great HOLIDAY for OUR family. But therewont be much under the tree this year. I gift each. Thats all we can afford . Is sad that some families wont have a Christmas Becouse of job loss
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10-30-2009 @ 9:11AM
candy guy said...
Hey Illinois make sure to let Michigan know about your system. We up here need more tax to support our CAREER POLITICIANS. Talk about scams, now this is being in my opinion really hard up for a dime. CAREER POLITICIANS, ha, ha what a f`ing job.
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10-30-2009 @ 9:37AM
bluqe said...
We as a country have reached the absolute pits with our governments, local, state and federal sticking their hands in our pockets with taxes becoming absurd.
This guy, OBAMA, IS WORSE THAN THE SWINE FLU, AND HIS ABILITY TO LIE CONSTANTLY AND NOT HAVE HIS FEET HELD TO THE FIRE IS DOWN RIGHT DANGEROUS.
When are we going to make this over rated community activist responsible for his being so loose with his facts.His arrogance is certainlly the thing he has the most of.
Tax, tax, and more tax, yet he stands there and tells us we are better off now, with this idiot in the white house.
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10-30-2009 @ 11:35AM
try-tennessee said...
Ha you blame it Obama, well our republican red state of Tennessee taxes ALL FOOD and meds. Our wonderful republican state has a 10.25 tax on most everything you purchase. So if Illinois is just starting to tax this stuff you should be glad they have been a blue state or they may have had to pay it for years gone by too...................
Oh nad why did not your ever so wonderfully BUSH fix this stuff when he was grand wizard buffoon in state???? The knife his stabbed in America's back is still digging deep to the bone.................
10-30-2009 @ 9:41AM
Eric R. Luna said...
Ahh... Politicians stealing candy from babies... got to love it!
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10-30-2009 @ 9:44AM
Lars said...
test
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10-30-2009 @ 9:46AM
Dr G said...
Yeah....tax Santa too...... go for it!
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