Is it Candy? Streamlined Sales Tax Organization & SSUTA Classification Issues

One of the most questioned items on the SSUTA site is regarding the classifications of what is or isn’t candy.  Why does it matter?  Because how it’s taxed.  Here are a few samples, answers a bit further down.  There’s a 6-page document on what qualifies as candy: candy rules (pdf).  And a sample matrix with real world examples here:  Samples: candy or not

So let’s play!

Cotton Candy – No!  Not in form of bars, drops, or pieces

Red Vines – No!  Contains flour, so not candy.   Licorice without flour?  Yes!

Tootsie Roll – Yes.

Kit Kat – No!  Contains flour, so not candy.

Twix – No!  Contains flour, so not candy.

Pixie Sticks – No!  Not in form of bars, drops, or pieces

Quaker Chewy Dipps – Yes!  Sweetened and doesn’t have the word flour in the ingredients.  But does have whole grains.

Dried fruit without sweetener?  No.  with sweetener?  Yes.

Nestle Crunch – No.  Contains flour.

Sure, it’s fun to pick on examples of crazy items, but this is candy!  And hardly unique.  Definitions of bottled water.  Are “essence” flavored waters soda? (no).  Just a taste (pun intended) of the joys of compliance regarding classification.  Now I want a Kit Kat!

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