New York Clarifies Sales Tax Exemption for Food: Artificially Sweetened Chocolate Product Is Subject to Sales Tax

Monday, May 21st, 2012

 
 
Share
Link
New York
General

The New York Department of Taxation and Finance (DTF) recently released an advisory opinion explaining that sales of an artificially sweetened chocolate product marketed as promoting a healthy lifestyle are subject to sales tax. N.Y. Advisory Op. of the Commr. of Taxn. & Fin. TSB-A- 12(9)S (May 3, 2012).

The taxpayer that petitioned the DTF for the ruling is a network marketing company that sells a chocolate product, which is sold in wrapped pieces. The company markets the product as promoting a healthy weight and healthy lifestyle. The product contains no natural sugar, but it does contain an artificial sweetener, glycemic xylitol. The taxpayer asked whether its sales of this product are subject to sales tax.

New York exempts food and food products from sales tax, but the exemption for food specifically excludes "candy and confectionery." N.Y. Tax Law sec. 1115(a)(1). According to New York's sales tax regulations, "[c]andy and confectionery include, without limitation, candy of all types; chocolate (plain or mixed with other products); . . . any similar product regarded as candy or confectionery based on its normal use or as indicated on the label or in advertising thereof." 20 N.Y. Comp. Codes R. & Regs. 528.2 (a)(4). The DTF reasoned that the chocolate product is sweetened chocolate sold in wrapped pieces, so it qualifies as a candy or confectionery product and, therefore, is subject to sales tax.


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Washington Announces Imported Goods Will Now Be Taxed

Thursday, March 21st, 2019 -The Washington Department of Revenue recently announced that effective March 14, 2019, a retail sales exemptio...

Marketplace Facilitators of Software Products to be...

Friday, March 15th, 2019 -The Commissioner of Taxation and Finance in New York released an advisory opinion that determined third partie...

Arkansas Rules on Taxability of Repairs and Labor Related...

Wednesday, March 13th, 2019 -The Arkansas Department of Finance and Administration recently released an administrative decision addressing ...

Studio Room Rental for Photography Sessions is Subject to...

Wednesday, March 6th, 2019 -The Missouri Department of Revenue (DOR) has released a letter ruling addressing the taxability of studio room...

Unprocessed Sand Not Taxable in Texas

Monday, March 4th, 2019 -The Texas Comptroller recently released a private letter ruling that found the mining and selling of unprocess...

California to Require Additional Registration and...

Friday, March 1st, 2019 -California recently released a special notice for out-of-state retailers who are required to register with the...