OLR Report 2012-R-0490 details which states impose a tax on soft drinks or candy. (It updates the
information in OLR Report 2002-R-1004.)
We identified
four states (Arkansas, Tennessee, Virginia, and West Virginia) that levy an
excise tax on soft drinks, but none that levy an excise tax on candy.
While most
states do not impose excise taxes on candy or soft drinks, many tax these goods
at a higher sales tax rate than other grocery food. Of the 46 jurisdictions (45
states and the District of Columbia) that impose a state sales tax, 32 exempt
grocery food purchases from the sales tax and 7 tax such purchases at a reduced
rate. Many of these 39 jurisdictions exclude candy or soft drinks from the
definition of grocery food, thus making them taxable or subjecting them to the
state's general sales tax
rate. In all, 18 jurisdictions tax candy and 23 tax soft drinks at a higher rate
than other groceries.
For more information, read the full report.
