On September 1, the State of Illinois redefined the term “candy” as it applies to state taxes. Any item containing a mix of chocolate, fruit and/or nuts is now defined as “candy.” These items used to be taxed at the food rate of 2.25%; the state now requires that they be taxed at the general merchandise rate of 10.25%. In addition to the new definition of “candy”, the state now defines any beverage containing added sweeteners as a “soft drink”, subject to the 13.25% tax on those beverages.
The new taxes on wine and spirits are being levied at the distributor level. The wine tax is negligible, and Pastoral is absorbing that cost as a courtesy to our loyal wine buyers. However, the tax on spirits is much greater, and as a result, Pastoral may eventually be forced to change pricing on gin, vodka and other craft spirits.