Voters Repeal Washington State Candy Tax

OLYMPIA, Wash.Yesterdays repeal of a food and beverage tax was a sweet victory for Washington state consumers and confectioners. Voters overturned the ill-conceived tax that would have cost consumers nearly $300 million over the next three years.

According to the National Confectioners Association (NCA), the win was achieved through the work of a coalition of consumers, retailers and food and beverage companies, including a strong push from NCAs Washington Confectionery Coalition, sending a clear message against arbitrary food and beverage taxes to state governments throughout the country.

On June 1, 2010, the state implemented a retail sales tax on nearly 3,000 candy and gum items, as well as bottled water, in hopes of generating approximately $30 million to help preserve funding for some public health, education and human service programs. A similar retail sales tax on soft drinks took effect on July 1, 2010.

The candy subjected to the tax was any goody prepared with sugar, honey, or other natural or artificial sweeteners combined with chocolate, fruits, nuts, or other ingredients or flavorings and formed into bars, drops, or pieces. Because candy does not include any preparation containing flour, any product that listed flour as an ingredient on the nutritional facts label was not taxable as candy.

NCA said the tax was so confusing and discriminatory that nearly 400,000 signatures were quickly collected to put the repeal on this months ballot.

Hundreds of candy products, like Snickers and Reeses Peanut Butter Cupsand even some other food products like energy barswere taxed while hundreds of other candy products, like Kit Kat and Twix bars, were exempt. The tax was discriminatory, targeting just some types of food and beverages. It also was regressive, placing the largest burden on seniors and lower-income families who can least afford higher prices on the groceries they buyespecially at a time when many are already experiencing financial turmoil.

NCA is grateful to the members of our Washington State Confectionery Coalition, whose passion and hard work played a major role in the successful repeal of this unfair tax," said Larry Graham, president of the National Confectioners Association. NCA and its members sent a clear message to public officials in Washington and beyond that it is not acceptable to avoid making hard but necessary budgetary choices by instituting taxes that discriminate against certain business and burden all consumers. Consumers demonstrated that they can see through these tactics, and that they are willing and able to take the necessary action to end them."