Spokane7
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May 30, 2010 in City
New food taxes start Tuesday
Candy, water and some beers now subject to state add-on
If you drink bottled water or beer, eat candy or chew gum, this weekend would be a good time to stock up. Those items – or at least some brands – are either being taxed, or taxed more, starting Tuesday.
That’s the day that a series of “temporary” taxes will begin on items the Legislature agreed could become a source of extra money for Washington state’s out-of-balance general fund. The taxes are set to expire June 30, 2013, although voters will be asked in November to extend the bottled water tax indefinitely to pay off bonds for energy retrofits at schools and colleges.
Taxes on cigarettes and other tobacco products went up May 1, and a new tax on soda along with other business tax changes will hit July 1. But some of the most noticeable consumer items, which Gov. Chris Gregoire argues are discretionary, get their taxes raised Tuesday.
Bottled water, candy and gum, which right now are exempt from the sales tax because they are classified as food, lose the food exemption Tuesday. Consumers can expect to pay whatever their local retail sales tax rate is, which in Spokane is 8.7 percent.
Retailers likely will have their scanners reset to add the sales tax to those items when they open Tuesday morning, Mike Gowrylow of the state Department of Revenue said.
The state is using the national retail codes that define candy, so some sweet treats like licorice, Kit Kat bars or Milky Ways remain exempt from the sales tax because they contain flour, which moves them to another category. Treats that require refrigeration also are not considered candy and are exempt from the sales tax.
The beer tax is different and has more caveats. First, the Legislature exempted microbreweries in an effort to protect some local jobs, so the tax hike mainly falls on large national brands, such as Budweiser, Miller and Coors.
The tax – 50 cents a gallon, or 28 cents a six-pack – is collected from brewers or wholesalers and passed on to retailers, who pass it on to consumers. Anne Radford, a spokeswoman for the state Liquor Control Board, said retailers won’t have to pay the tax on beer they have in stock on June 1. Merchants will face the higher prices when they restock, so consumers could see a slight delay in price hikes for beer.
The Legislature spent much of its regular 90-day session and the 30-day special session struggling with the budget and considering tax increases. Gregoire, who helped broker the final budget deal, argues these taxes are fairer than a general increase in the sales or property taxes because people can choose to drink tap water instead of bottled, trade candy for a healthier snack like fruit, or drink less beer.
Republicans, who were united against the taxes, argued the higher taxes won’t change consumption; they will just prompt people in communities like Spokane to stock up in nearby places like Idaho where the taxes are lower.
The taxes prompted a flurry of initiatives aimed at repealing them, but signed petitions must be turned in by July 2. Tim Eyman, who filed 11 initiatives involving various combinations of the taxes, said Friday his organization is still evaluating whether to begin gathering signatures on any of them. Right now they’re concentrating on getting a measure on the ballot restoring the supermajority requirement for tax increases, which the Legislature suspended before raising the taxes.
The Washington Beverage Association also has a pair of initiatives to repeal some taxes that go into effect Tuesday, as well as the soda tax that hits in July. Robert Gara, a spokesman for the association, said the group has not yet begun a signature drive and realizes that gathering more than 250,000 voters’ signatures in a month will be a major undertaking.
“But we believe we will have support for this,” Gara said.
Supermajority for taxes unconstitutional, judge rules 
liarsinnews on May 30 at 7:44 a.m.
Another few items to pick up when shopping at Post Falls. Between all of the sin taxes, it sure will pay to make the trip. Even filling the gasoline tank will help save money considering Gregoire`s highest state gas tax in the nation.
lewis8457 on May 31 at 8:17 a.m.
I have been going out Trent to the first gas station over the state line yesterday I filled up for 2.94 a gallon. In this economy every little bit helps.
JBlim on May 31 at 9:55 a.m.
It was $2.90 at the valley Costco yesterday.
lewis8457 on June 01 at 7:13 a.m.
I noticed the Tesoro station on Nevada by Gonzaga had it for $2.92 yesterday, what gives? The masses driving to Idaho has the Washington station lowering prices, or are they trying to keep us from going to tribal stations? which there are only two, Worley and Airway Heights and both of those stations sell bad gas. Not even worth the drive.
gotcha on June 22 at 4:18 p.m.
This is what your Progresive package gets you when you vote these SEIU bought politicans into office….Start the next election cycle out right by voting Patty Murray out of office for starters…
jwc928 on July 23 at 8:47 p.m.
It will get better. One of our saviors will be Ken Salazar after he shuts down off shore drilling, on shore drilling and any chance of making oil shale a viable resource. The Gulf is going to lose thousands of jobs because of “Ken” and Utah will lose a few more thousand and then throw in Wyoming. We are truly in the hands of the Philistines. Oil will be the life blood of all countries for the next probably 50 years unless the environmentalist can get the wind to blow for 24 hours per day or the sun to shine day and night. Sorry I ramble about idiocy.