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State Budget Crisis
Thu December 2, 2010
Candy, soda and bottled water tax goes away today
Washington’s sales tax on candy, soda and bottled water goes away today. Some candy and chocolate stores are bracing for a surge in business from corporate gift purchases that have been delayed until now to avoid the tax.
During the general election last month, Washington voters repealed recently enacted sales taxes on candy, soda pop and bottled water.
The repeal takes effect thirty days after the election. In Seattle, See’s Candy sales manager Becky Metzler says a lot of chocolate customers paid attention to the date and timed their big holiday buys accordingly.
“We’ve been preparing for a while. Customers have placed their orders but will not pick up until the tax has been removed. Yes, they are very aware,” says Becky Metzler.
Metzler says the savings on a volume order add up when the sales tax is 9.5 percent as it is in Seattle. But the repeal of the beverage and candy taxes has deepened the budget hole in Olympia.
Washington’s Department of Revenue estimates the state would’ve collected about $55 million through the remainder of the current budget cycle if those taxes had stayed in place.