Iowa Revises Regulation on Sales of Candy

Monday, October 20th, 2014

 
 
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Iowa
General

The Iowa Department of Revenue has revised its regulation on sales of candy, effective November 19, 2014.

Iowa exempts sales of food, but that exemption does not apply to sales of candy. The new rule has a revised subsection on what kinds of food are taxable candy and what kind of food are nontaxable.

Taxable candy includes preparations of fruits, nuts, or other ingredients in combination with sugar, honey, or other sweeteners in the form of bars, drops, or pieces. Other taxable candies include caramel apples, candy-coated popcorn, jellybeans, marshmallows, and mixes of candy pieces. Items that are normally sold as ingredients for use in recipes but which can be eaten as candy are taxable as candy. Such items include toffee bits, M&Ms, candy decorations for baked goods, and chocolate chips.

Nontaxable items include frostings, dried fruits without added sweetener, prepared fruit in sugar or similar base, syrups, cotton candy, and breakfast cereals.

https://www.legis.iowa.gov/docs/aco/bulletin/10-15-2014.pdf


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