OLR Research Report


December 23, 2002

 

2002-R-1004

TAXES ON JUNK FOOD

 

By: Judith S. Lohman, Chief Analyst

STATE

TAX OR FEE

PAID BY

Arkansas

· $ 2 per gallon of soft drink syrup or simple syrup sold in the state

· $ 0. 21 per gallon of bottled soft drinks or soda sold in the state or, if sold in powdered form, a per-package tax equal to $ 0. 21 for each gallon of soft drink that may be produced from the package

Distributors, manufacturers, wholesale dealers

Missouri

Inspection fee of $ 0. 003 per gallon of soft drinks manufactured or sold in the state, up to a maximum of $ 0. 04 per month per case of 24 bottles or cans of a manufacturer's bottling capacity

Wholesale manufacturers and distributors

Rhode Island

$ 0. 04 on each case (12 24 oz. cans) of beverage containers (soda, soft drinks, beer)

Retailer or consumer (collected by wholesaler)

Tennessee

1. 9% of gross receipts derived from soft drink business

Manufacturers, producers, and sellers of bottled soft drinks in the state and those importing soda into Tennessee for sale

Virginia

Excise tax on gross receipts from soda sales as follows:

· $ 50 if gross receipts are $ 100,000 or less

· $ 100 if gross receipts are between $ 100,000 and $ 250,000

· $ 250 if gross receipts are between $ 250,000 and $ 500,000

· $ 750 if gross receipts are between $ 500,000 and $ 1 million

· $ 1,500 if gross receipts are between $ 1 million and $ 3 million

· $ 3,000 if gross receipts are between $ 3 million and $ 5 million

· $ 4,500 if gross receipts are between $ 5 million and $ 10 million

· $ 6,000 if gross receipts exceed $ 10 million

Wholesalers and distributors of carbonated soft drinks

Washington

$ 1 per gallon (proportionate for fractional amounts) on each wholesale sale of syrup (concentrate added to water to produce carbonated soda)

Wholesalers

West Virginia

Excise tax on sales, handling, use, or distribution of bottled soft drinks and soft drink syrup in the state as follows:

· $ 0. 01 on each bottle of 16 9/10ths fluid ounces or half a liter or fraction of bottled soft drink

· $ 0. 80 on each gallon of bottled soft drink

· $ 0. 84 on each four liters of soft drink syrup

· $ 0. 01 on each ounce or 28. 35 grams of dry mix used to make soft drinks

Tax cannot be collected more than once with respect to any bottled soft drink or soft drink syrup made, sold, used, or distributed in the state. Revenues earmarked for fund to build four-year school of medicine, dentistry, and nursing

Manufacturers, wholesalers, and retail dealers or any other original consignee of soft drinks or soft drink syrup

STATE

SALES TAX RATE

NONEXEMPT FOOD AND BEVERAGES

Connecticut

6%

Soft drinks, soda, candy, and confectionery unless sold in school cafeterias, college dining halls, sororities and fraternities, hospitals, residential care homes, assisted living facilities, senior centers, day care centers, convalescent homes, nursing homes, or rest homes, or unless sold from a vending machine for less than 50 cents

Illinois

6. 25%

Soft drinks

Indiana

5%

Candy, confectionery, chewing gum, soft drinks, soda, mineral water, carbonated water, and ice

Kentucky

6%

Candy, confectionery, chewing gum, soft drinks, soda, mineral water, carbonated water, and ice

Maine

5%

Soft drinks, iced tea, soda, water (includes mineral, bottled, and carbonated water), ice, candy, and confectionery

Minnesota

6. 5%

Soft drinks, candy, and all food sold through vending machines

New Jersey

6%

Candy, confectionery, and carbonated soft drinks

New York

4%

Candy, confectionery, fruit drinks containing less than 70% natural fruit juice, soft drinks, and soda unless sold from a vending machine for less than 75 cents

North Dakota

5%

Candy, gum, carbonated beverages, soft drinks containing less than 70% fruit juice, powdered drink mixes, coffee, coffee substitutes, tea, cocoa, and cocoa products

Texas

6. 25%

Carbonated and noncarbonated packaged soft drinks, diluted juices, ice, and candy

Washington

6. 5%

Carbonated beverages, ice, bottled water