News - Local
Candy tax confusion
Posted: Mar 16, 2010 10:55 AM by Jeannette Hynes
Updated: Mar 16, 2010 10:55 AM
A candy confusion is popping up across Colorado. Buinesses that sell sweet treats are trying to figure out which sweets fall under the new law for taxing.
Starting May first, candy and soda will cost you 2.9% more in Colorado. Governor Bill Ritter signed the bill into law a few weeks ago.
The trouble businesses are having is trying to figure out what's candy and what isn't. For example, a Kit-Kat or Twix bar would seem to be candy, but the law defines candy as something that does not contain flour. Both products have flour, because of the cookie inside the chocolate. Trail mix with m&m's is also causing confusion for those who sell it.
Squeak Soda Shop in Colorado Springs already charges a restaurant tax on its homemade sodas. Owner Joey Suntken's concern is what happens when he puts that soda into bottles.
"Is the soda that we make and sell to people here - is that handled differently than the bottled soda that we'll begin to bottle? Is that different than the candy. I think the answer is yes," says Suntken, but he'll talk with his accountant over the next few weeks to be sure.
Patsy's Candies makes its own confections. The business has a new cash register on order to figure the tax. They're just trying to figure out which candy counts.
Most businesses we talked with say they'll start charging the tax as they're supposed to May 1, but they take issue with the tax in the first place.
"in my mind, they're putting a tax on the little guy and they're putting a tax on happiness," says Suntken.
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