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What to know about Healey’s proposed candy tax
Candy is considered a grocery in Massachusetts and therefore not currently subject to sales tax.
Sweet treats could soon cost more in Massachusetts.
When Gov. Maura Healey announced her $62 billion budget proposal earlier this month, she floated the idea of removing the sales tax exemption on candy.
In Massachusetts and most other states in the U.S., most groceries are not taxed. Right now, “candy and confectionery” is included in that tax exemption. Under Healey’s proposal, “sugar and sugar products” would still be exempt, but taxes would be levied on candy. Candy costing $3.50 or more and sold through a vending machine may be subject to sales taxes under current law.
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Healey addressed the idea at a press conference earlier this week after touring the Burlington Department of Public Works.
“I’ve gotta figure out a way to pay for snow plows,” she said, per State House News Service. “It’s an idea. I propose ideas in a budget. And we’ll see what the Legislature does with all of this. But nobody likes taxes.”
The revenue from a candy tax would be extremely modest in the grand scale of the state budget. Instead, the idea is likely meant to improve public health.
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“This is expected to raise something like $25 million and remember this is a $60 billion budget, so this is a rounding error in terms of actual revenue needed. So I think they are thinking of a kind of public health mission here,” Evan Horowitz, executive director of the Center for State Policy Analysis at Tufts University, recently told WBUR.
As of 2020, candy was excluded from sales tax exemptions in 15 states, according to the Tax Foundation. This includes nearby states like Maine and New York. In some states, like Illinois, whether a treat has flour in it determines how it is taxed.
In many states, sugary beverages like soda are not considered groceries and are thus subject to taxes. The Boston City Council recently discussed the topic of imposing new taxes on sugary drinks to improve public health and generate extra revenue. Residents are skeptical.
A hearing will take place in the future, and any home rule petition passed by the City Council would still need to win approval from state lawmakers on Beacon Hill.
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