Candy would lose sales tax exemption under Massachusetts governor's budget proposal
BOSTON - Massachusetts Gov. Maura Healey released her $62 billion budget plan on Wednesday, proposing big investments in transportation and education. And in a potential change that shoppers could notice at the grocery store, the governor is seeking to cover a small portion of the spending by removing the sales tax exemption from candy purchases.
The budget seeks to change state law to exclude candy from the category of "essential" foods like fruit, meats and vegetables that are exempt from the 6.25% sales tax.
Removing candy sales tax exemption could raise $25 million
"All we're doing with candy, to be clear, this isn't about a new tax," Healey told reporters at a news conference. "What this is doing is simply saying when you go to the grocery store, instead of having candy treated like a purchase of bread and eggs and milk, essential groceries, that candy is now going to treated in the same way as when you go to the bakery in the back of the grocery store and pick up cupcakes for your kids."
The governor estimates that eliminating the sales tax exemption on candy could raise $25 million. Right now, Massachusetts is one of 11 states that exempt candy from the sales tax.
WBZ-TV reached out to the Massachusetts Retailers Association, which said it is seeking clarification on the proposed change.
Healey's budget proposal
Healey's budget contains initiatives she highlighted in her State of the Commonwealth address last week. Nearly $2 billion in spending will be covered with revenue generated by the millionaire's tax that was approved by voters in 2022.
"We're focusing those investments on things that people depend on, need, all over the state. Child care, education, housing, transportation, human services and so much more," Healey said.
Healey recently announced a 10-year, $8 billion transportation plan to fund the MBTA and fix roads and bridges. This budget plan includes $687 million to stabilize T finances and $617 million for MassDOT operations.
In the education category, the budget includes $170 million to keep providing free school breakfast and lunch and $94 million for free community college.
Overall, the budget is 2.6% higher than last year's budget, which Healey says is below the rate of inflation.
"It's balanced, it's fiscally responsible, and we believe it is a blueprint for meeting the needs of residents and businesses while also taking care of taxpayer dollars," she said.
