Iowa Revises Regulation on Sales of Candy

Monday, October 20th, 2014

Closeup of chocolates.

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.

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 or call 866.578.8193.

Charges to Use Fitness Device for Entertainment Taxable...

Friday, August 17th, 2018 -The Alabama Tax Tribunal recently ruled that charges for the use of a "fitness device" at a festival or event ...

Private Club Alcohol Purchases Taxable in Arkansas

Thursday, August 16th, 2018 -The Department of Finance and Administration recently ruled that a liquor store must collect sales tax from pr...

Vehicles Used to Transport Materials between Facilities...

Wednesday, August 15th, 2018 -The Arkansas Department of Finance and Administration recently ruled that a vehicle used to transport in-proce...

Economic Nexus in Washington

Monday, August 13th, 2018 -Effective October 1, 2018, certain out-of-state businesses will be required to collect and pay Washington sale...

Economic Nexus in Michigan

Thursday, August 9th, 2018 -Effective October 1, 2018, certain out-of-state sellers will be required to collect and pay Michigan sales or ...

Georgia Suspends Tax on Jet Fuel

Wednesday, August 8th, 2018 -Effective August 1, 2018, Georgia no longer collects state level sales and use tax on jet fuel. Georgia tax...