With the state legislative session having kicked off Monday, one of the early bill submissions to the House of Representatives – the lifting of a tax exemption from candy and gum – has already gained some attention from businesses.
The so-called “candy tax” would make sales tax apply to any preparation of sugar, honey, or other sweeteners in combination with chocolate, fruits, nuts, or other ingredients or flavorings in the form of bars, drops or pieces. Items using flour as an ingredient would be exempted. Proceeds from the tax would be dedicated to funding local health jurisdictions.
The tax is projected to raise $28 million in its first year, according to the Department of Revenue.
“This bill is at the nexus of the problems of obesity and public health,” Rep Jim Moeller of Vancouver said. The Democrat submitted the bill in December. “It addresses what I think is a critical problem in the cutting of local funding dollars for public health. Thirty-five million dollars have been cut to date.”
Opponents to the proposal, like the Tacoma-based manufacturers of Almond Roca, have argued that candy is, in fact, a food. Rep. Ed Orcutt, R-Kalama, suggested the proposal was a tax on children.
“The idea that candy is food is ridiculous,” Moeller said. “You don’t have Skittles for breakfast and Snickers for dinner.
“I think the idea that people base their purchases on sales tax is a bogus argument. You buy something because you need it or you want it. Nobody’s going to think about it. I would bet money that when people go to the grocery store they don’t know what is and is not taxed.”
Local confectioners were largely unsure of how the tax would affect them.
Tammy Klein, the owner of Candy Fix and Supplies on the edge of Sumner, said she isn’t sure if her customers would notice.
“I buy bulk chocolate and turn it into confections, so I don’t think it would affect my own purchases,” she said. “If it were going to the Health Department, I guess that would be alright.”
Alana Frost of Dani-Mak Desserts and Gifts in Bonney Lake doesn’t know much about the proposed tax, but assumes it would affect her business, as candy is used in the cookies they make. Sales of the cookies would not be subject to the candy tax because they include flour.
Moeller did not know whether the tax would apply at the wholesale level, but imagined it would.