🎧 Listen to This Article
Nebraska lawmakers are considering a controversial move to impose sales tax on candy and soft drinks, as part of efforts to address the state’s budget deficit. The proposed bill, LB170, aims to remove the current sales tax exemption on candy and soda, a move that has raised concerns among industry groups and consumers alike.
Currently, Nebraska exempts most food and beverage items from sales tax, with the exception of prepared foods and items from vending machines. Under the new bill, candy would be defined as a “preparation of sugar, honey, or other sweeteners combined with chocolate, fruits, or nuts, and formed into bars, drops, or pieces.” However, items like granola and protein bars would remain exempt, as they do not fall under the definition due to their lack of sweeteners or refrigeration needs.
Soft drinks, defined as nonalcoholic beverages containing sweeteners, would also be taxed. This definition excludes beverages made with milk or milk substitutes, and those containing more than 50% fruit or vegetable juice by volume.
Supporters of the bill argue that it could provide a much-needed boost to Nebraska’s finances. However, the proposal has faced strong opposition, particularly from the Nebraska Beverage Association, which warns that the new tax could negatively impact both consumers and businesses.
As the state grapples with its budget issues, the outcome of this bill could set a precedent for other states considering similar measures. Tax professionals and businesses in the food and beverage industry will need to stay updated as the bill progresses through the legislature.
For further details, clarification, contributions, or any concerns regarding this article, please contact us at editorial@tax.news. We value your feedback and are committed to providing accurate and timely information. Please note that our privacy policy will handle all inquiries
