Costco had two options available this year for those looking to buy individually wrapped candy in bulk: the chocolate mixture or the candy mixture. Here in Florida, we know the chocolate option is risky in the heat.  Regardless of your candy preference, you may have noticed an unexpected inclusion of sales tax on your grocery purchases this Halloween.

It is a common belief that Florida sales and use tax exemptions for groceries covers all food items purchased in a grocery store.  Florida business owners are always looking for simple sales tax rules to live by. One of the most common myths is that food sold in a restaurant is subject to Florida sales tax while food sold in a grocery store is not. While rooted in some truth, this Florida tax myth is misleading. The determining factor for sales and use tax on food items is not the location of where the food is sold. In fact, many taxable items are sold in grocery stores while many exempt items are sold in restaurants. Instead, one of the primary factors in deciding whether a food purchase is subject to sales tax is whether the item is meant for immediate consumption. 

But your Halloween candy was not meant for immediate consumption! Your candy traveled from the Costco parking lot to your keepsake witch’s cauldron to various adorable trick-or-treat bags until finally it arrived in a home you’ve never seen for the enjoyment of a child you do not know. How can candy be taxable in Florida? 

It is helpful to consider the intention of both sales tax and its exemptions. Sales taxes tax consumption. The more you buy, the more sales and use taxes you pay. In theory, wealthier people consume more because they have more money to spend. However, there’s a baseline minimum consumption which all Americans require to meet their basic necessities. Generally, sales tax laws carve out exemptions to avoid imposing a heavier burden on that minimum consumption level. That is why you will see items such as groceries, medical equipment, diapers and baby formula, and other personal items exempted not only in Florida but across other states as well. 

This is why the bag of cherries you purchase during their peak season in summer is not taxable, but the cherry flavored Twizzlers (surprisingly unpopular amongst kids this year!) are subject to tax. You need groceries to live. You do not need Twizzlers to live. 

When you break it down, there is no hard and fast rule you can apply to food items to determine their taxability. These, in fact, are only a couple of the many nuances to the rules of Florida sales tax on food. 

Thankfully, the Florida Department of Revenue has created the DR-46NT. The Nontaxable Medical Items and General Grocery List provided by the Department gives all the details for those interested. If you scroll down to page three you can find exactly why your Halloween candy is taxable.