Saturday, May 26, 2007

The Marshmellow Rule

I enjoy finding interesting and strange laws as I travel the country doing sales and use tax seminars. I discovered one in New York. They consider grocery store type food to be non-taxable. But as in many states, candy is considered taxable.

So what to do about marshmellows? You and I might not think this would be a big deal, but evidently the regulators in Albany felt the need to address this burning issue.

Miniature marshmellows are exempt as food. The big ones are taxable.

But a seminar participant last week brought up a good point: what about marshmellow fluff?

UPDATE: All marshmellows are now exempt in NY.


Anonymous said...

I work with taxpayers in NC to help them through sales and use tax audits. One of the strangest things I have seen here was an auditor who wanted to tax dried cranberries as candy because there was sugar added to them.

Jim Frazier said...

Unfortunately, probably not that weird. Thanks for the comment.