Candy no longer will be taxed at the lower food rate, but at the higher general merchandise rate. It is defined as any food for human consumption sold that has sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruits, nuts or other ingredients or flavorings in the form of bars, drops or pieces. It does not include any food that contains flour or requires refrigeration.
"You have to be careful to look at the ingredient label," Hofer said. "If it contains flour, it's a food."
Some grooming and personal hygiene products also will be taxed at the higher rate, and the inequitable taxing of similar items will be addressed. These items include but are not limited to body soap, cleansers, shampoo, toothpaste, mouthwash, antiperspirant, suntan lotions and sun screens. The change comes to those products that claim a medicinal value, which had been taxed at the lower rate.
Click the above link to read more.
How does the retailer know which rate to charge?
The answer is flour or refrigeration.
From the Illinois Department of Revenue Information Bulletin issued 30 days before the new rates take affect:
If you are wrong about the ingredients or perhaps the candy doesn't have sugar in it?
I guess you punt. Based on the poor job Revenue has done enforcing the soft drink rate changes from several years ago, you can't really worry about it.
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