Water is food, but we’re not so sure about ice…
Starting Jan. 1, state tax officials will consider bottled water to be food, and will therefore stop taxing it.
The change is among several tax revisions as Washington and 40 other states try to streamline and simplify their sales tax rules.
Simplicity, however, ain’t so simple. Among the other changes:
-Sparkling water and club soda, both currently taxed because they’re carbonated, will no longer be taxed — unless they contain sweeteners.
-If takeout food is heated or served with utensils, it’s taxable.
-If the seller combines two or more ingredients, it’s taxable.
-And our favorite: crushed, shaved, or cubed ice: no tax. But if it’s a block of ice, you pay tax.
The change is among several tax revisions as Washington and 40 other states try to streamline and simplify their sales tax rules.
Simplicity, however, ain’t so simple. Among the other changes:
-Sparkling water and club soda, both currently taxed because they’re carbonated, will no longer be taxed — unless they contain sweeteners.
-If takeout food is heated or served with utensils, it’s taxable.
-If the seller combines two or more ingredients, it’s taxable.
-And our favorite: crushed, shaved, or cubed ice: no tax. But if it’s a block of ice, you pay tax.
* This story was originally published as a post from the blog "Eye On Olympia." Read all stories from this blog