|
ILLINOIS
IMPOSES TRICKY TAXES ON HALLOWEEN TREATS
Illinois Policy Institute/
Dylan Sharkey
Taxes are different on different types of candy in Illinois, with some
brands taxed six times more than others. Just because you can eat it,
doesn’t mean Illinois’ tax policy sees it as food.
|
|
 Illinois shoppers will pay higher taxes depending on the type
of candy they choose for trick-or-treaters – at least six times higher taxes for
some brands.
In Illinois, treats prepared with flour don’t count as “candy.” That means
Halloween favorites with flour including Kit Kats, Twizzlers and Twix aren’t
recognized as candy because Illinois considers them to be food.
Candy sales are taxed at 6.25%. Treats containing flour are considered regular
grocery items and taxed at 1%. So the sales tax for a Hershey’s milk chocolate
bar is over six-fold the tax of the Cookies & Cream version.
[to top of second column] |
States such as Arzona and Michigan consider all
candy grocery items, with no special tax rate. California exempts
all groceries from sales taxes.
Sales taxes in 2021 will net Illinois an estimated $7.4 billion, the
second-highest revenue source behind income taxes. When you stock up
for Halloween in Illinois, a little flour in your treats could save
you a little dough. |
