A break for your sweet tooth: a plan to cut sales tax on candy

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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