TIP # 00A01-05
DATE ISSUED: 04/07/00
More Information on Sales Tax Exemption for the Retail Sale of Snack Foods
New Form: Florida Estate Tax Return (Form F-706)
On June 19, 1998, the Department issued a Tax Information Publication (TIP# 98A01-08), titled Changes in Sales and Use Tax Exemption for Food Products Beginning July 1, 1998. That TIP indicated that, under Florida law, the exemption for food products for human consumption does not extend to candy and any similar product regarded as candy, based on the product's normal use, as indicated on its label or in advertising. Since the issuance of that TIP, the Department has been asked to evaluate a variety of different snack food items to determine whether such items fall within the category of candy or a similar product regarded as candy. As a result of the evaluation, it has been determined that there are many snack foods that are not regarded as candy or confection based on their normal use, as indicated on the label or advertising.
Examples of snack foods that are not included in the category of "candy and similar products" and therefore are not subject to sales tax are:
- Breakfast bars, cereal bars, granola bars, and nutritional food bars, whether or not such products are candy-coated or chocolate-coated;
- Popcorn, potato chips, and pretzels, whether or not such products are candy-coated or chocolate-coated;
- Glazed or sugar-coated fruit not advertised as candy or confection, (e.g., fruit roll-ups, fruit snacks, and dried fruit);
- Honey-roasted nuts;
- Items advertised and sold for use in cooking and baking (e.g., chocolate morsels, candied fruits, marshmallows, and marshmallow bits);
- Items intended for decorating baked goods;
- Chocolate-coated or candy-coated cookies, donuts, snack cakes, or similar bakery products.
FOR MORE INFORMATION
Sections 212.08(1) and 212.08(1)(c)11, F.S.