Iowa Revises Regulation on Sales of Candy

Monday, October 20th, 2014

 
 
Closeup of chocolates.
Share
Link
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


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 Penalty Reduction Program

Monday, May 21st, 2018 -Businesses that apply to register with Washington's Marketplace Fairness Penalty Reduction Program by June 30,...

Fuel Used to Heat Detached Garages Taxable in Maine

Monday, May 21st, 2018 -Maine Revenue Services recently released a publication explaining that sales tax applies to fuel that is used ...

Cloud Software No Longer Taxable in Indiana

Thursday, May 17th, 2018 -Effective July 1, 2018, cloud software will no longer be taxable in Indiana. Indiana taxes the sale, lease,...

Sales Tax Increase in the Historic Triangle Region of...

Monday, May 14th, 2018 -Effective July 1, 2018, there will be an additional one percent (1%) regional sales and use tax imposed in the...

Sales by Charitable Organizations Generally Exempt in...

Friday, May 11th, 2018 -The Arkansas Department of Finance and Administration recently addressed the taxability of sales made by a non...

Credit Card Convenience Fees Taxable in New York

Wednesday, May 9th, 2018 -The New York Department of Taxation and Finance recently ruled that convenience fees for credit card purchases...