Candy, soda and water: what is taxable?
Candy is exempt food in Washington; the soda and the bottled water next to it are taxable. Exempt food still counts toward retailing B&O.
Transcript
Dana My corner-store client asks me: is candy taxable?
Sal Not in Washington. Candy is food, and food is exempt from retail sales tax.
Sal The exceptions are prepared food, soft drinks, bottled water and dietary supplements. So the soda next to the candy is taxable, and so is the bottled water.
Sal And exempt food still counts toward retailing B and O.