Illinois’ Insane Candy Tax Will Make Your Head Spin
It's no surprise that the Land of Lincoln is one of the most over-taxed states in the entire country, but when it comes to candy, Illinois has one of the most complicated tax codes of any of the 50 states..
Did you know that if you purchase a Twix bar you pay a 1% sales tax in Illinois, but if buy a Snickers bar, you will pay an Illinois sales tax rate of 6.25% (8.25 % in Rockford). Does this make sense? You would think that Snickers bar is a healthier food and should be talked at the 1% food rate. WRONG! Welcome to Illinois, the land of complicated taxes.
According to a report from the Illinois Policy Institute, the reason why Twix bars and Snickers bars are taxed differently is because
Candy that contains flour as an ingredient and does not require refrigeration – such as Twix – is exempt from Illinois’ 6.25 percent sales tax and taxed at a 1 percent rate instead.
Since there is no flour in Snickers bars, it is taxed at the higher 8.25% rate in Rockford. This makes no sense whatsoever. So this means flour is a bad thing, I guess.
So how 'bout some of your other candy favorites?
Three Musketeers taxed at 8.25% in Rockford, but Twizzlers are taxed at 1%
Illinois law has ten pages of rules devoted to taxes on candy and will make your head spin. Illinois is not only the land of Lincoln but land of candy confusion. Good luck to anyone in retail who has to keep track of these laws to figure out how to charge the right tax.