Candy 102B Taxable Subcategory of Food—See Fact Sheet 102A Fact Sheet

www.revenue.state.mn.us Candy 102B Taxable Subcategory of Food—See Fact Sheet 102A Fact Sheet Candy is taxable. The exemption for food prod- bars, drops or pieces. Cotton candy is taxable ucts does not apply to candy. "Candy" means a when prepared by the seller. preparation of sugar, honey, or other natural or artificial sweeteners in combination with choco- Examples of taxable candy include: late, fruits, nuts, or other ingredients or flavorings • almond bark in the form of bars, drops, or pieces regardless of • breath mints size. Candy does not include any preparation con- • breakfast and nutrition bars without flour taining flour and must require no refrigeration. • candy bars Flour: Items that contain the word “flour,” such • chocolate chips as white, whole wheat, rice, corn, or brown flour, • chocolate-coated potato chips as an ingredient on the label are not taxable can- • fruit roll-ups dy. Examples of items that contain flour that are • marshmallows not taxable include Kit Kats, Twix, Reese-Sticks, • caramel corn and licorice. Food ingredients such as soy or whey • caramel apples that are sometimes used in place of flour are not • chocolate or carob covered raisins, nuts, etc. flour. • sweet or semi-sweet cooking bars or chips • gum Refrigeration: If an item requires refrigeration, it • honey roasted and honey coated nuts, beer nuts is not candy. For example, Popsicles and ice • peanut brittle cream bars require refrigeration so they are not • sugarless candy taxable candy. However, these items are taxable if • yogurt covered raisins, nuts, etc. they are prepared food. See Fact Sheet #102D, Prepared Food, for more information. Brand names are shown for illustration purposes only and do not imply sole representation in any Candy that does not require refrigeration is taxa- category. ble even if it is sold frozen. Sweeteners: Examples of sweeteners are corn References M.S. 297A.61, Subd. 3(d), Definitions syrup, dextrose, invert sugar, sucrose, fructose, M.S. 297A.61, Subd. 33, Candy sucralose, saccharin, aspartame, stevia, fruit juice MN Rule 8130.4700, Prepared Food, Candy, and Soft Drinks concentrates, molasses, evaporated cane juice, Fact sheets that may be of interest: rice syrup, barley malt, honey, and artificial Food and Food Ingredients, #102A Soft Drinks and Other Beverages, #102C sweeteners. Prepared Food, #102D Dietary Supplements, #102E Note: All food sold from vending machines, or Restaurants and Bars, #137 food prepared by the seller, is taxable. Cotton Vending Machines and Other Coin-Operated Devices, #158 candy is commonly thought of as candy, but it is not candy because it is not sold in the form of Sales and Use Tax Division – Mail Station 6330 – St. Paul, MN 55146-6330 This fact sheet is intended to help you become more familiar with Minnesota tax Phone: 651-296-6181 or toll-free 1-800-657-3777 laws and your rights and responsibilities under the laws. Nothing in this fact sheet Minnesota Relay (TTY) 711 supersedes, alters, or otherwise changes any provisions of the tax law, administrative Email: [email protected] rules, court decisions, or revenue notices. Alternative formats available upon request. Stock No. 2800102B, Revised 12/12 Minnesota Revenue, Candy .

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