Candy buyers will pay tax on Snickers beginning June 1

VANCOUVER, Wash. – From convenience stores to grocery stores, and even to the ballpark, Washingtonians will soon be paying more on things a lot of us buy.

The start of a new month on Tuesday means new taxes. In just a few days, purchases of bottled water and candy are going to cost extra.

However, taking the biggest hit will be another summertime favorite: beer.

Budweiser even took out a full-page color ad in some Washington newspapers. The message? The ad warns "beer lovers" that this weekend "is the last chance to take advantage of lower prices" before the increase.

On Saturday, Anna-Maria Rodriguez-Lopez picked up two 12-packs of Michelob Ultra – a reduced calorie beer that she likes – at a Washington supermarket. Come Tuesday, that same purchase will cost a dollar more.

The new tax – 28 cents per six-pack – targets major-brand beers, which a majority of people buy. However, not every beer is treated equally. Microbrews will be exempt – aimed at helping local breweries.

"I think it's going to hit certain people more than other people," said Washington resident Carolyn Walker. "It'll hit the poor more than the rich."

On June 1, lots of candy and gum will get more expensive too, as it is hit with a sales tax for the first time. (See "Tax on candy: Sticky situation or sweet deal?") However, not all candy is taxed.

As described by Rep. Jim Moeller from Vancouver, candy buyers will pay tax on Snickers bars but not on Twix, and tax on Reese's Peanut Butter Cups but not on Reese's Peanut Butter Sticks. That's because some candy has flour in it and that, according to tax guidelines, classifies it as food. According to Washington state's retail tax policy, "food products for human consumption" are exempt from state retail tax.

This candy tax alone could add up to $30 million a year for the state's budget, Rep. Moeller told KATU in February.

The price of bottled water also will go up June 1. A case of bottled water on sale for $4 would be subject to the state's 6 1/2 percent sales tax – meaning 26 cents will get tacked on.

The new taxes could change the way some shop, but not others. Kathy Swanberg, for one, said she doesn't expect to change her buying habits: "No, not really ... it just hurts a little bit more. I'll still buy the same things," she said.

The next tax that's coming up is a soda tax of about 25 cents per 12-pack. That tax starts July 1.

All of these taxes are supposed to last only three years. This tax measure was passed by Washington's state legislature April 12, and signed into law by Washington Governor Christine Gregoire April 23.

TAX NEWS - may 2010

Go to Tax Rates Home Page

Home > Tax News > May 2010

Tax

© 2009-2012 TaxRates.cc
2011 - 2012 Tax Rate Guide and Tax Help Website

Tax Rates
Tax Rates
Global Average Tax Rates
Historical Tax Rates
Tax News
Tax Videos
Tax Articles
IRS Tax Forms
Tax