New York Tax and Finance Department Issues Opinion on Taxability of Chocolate-Covered Marshmallow Tinnings

The New York Department of Taxation and Finance July 30 issued an advisory opinion in response to a petition regarding the tax status of certain chocolate-covered marshmallow twists. The petitioner questioned whether these items, which do not resemble any specific object or character and are not labeled as candy or confectionery, are subject to New York State and local sales tax. The Department concluded that despite the product’s packaging and shape, the chocolate-covered marshmallow twists are considered candy and confectionery, and are therefore subject to state and local sales tax. [N.Y. Dept. of Tax’n. and Fin., Advisory Opinion TSB-A-24(15)S, 07/30/24] ...