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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.