NASHVILLE, Tenn. (AP) -- Here's a sweet deal: taxing candy at the same reduced rate as groceries like vegetables and milk.
State Sen. Bo Watson, a Hixson Republican, is sponsoring the measure to tax candy at the 5.5 percent rate levied on most other groceries.
Sales of sweets are currently taxed at 7 percent. That's the same rate for prepared foods, alcohol, dietary supplements and tobacco.
The Legislature's analysts estimate Tennesseans will buy nearly $440 million worth of candy products in the upcoming budget year.
The analysts say a change in the tax won't affect consumption, but would cost the state nearly $7 million in revenue.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
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