Did liquor filling change Illinois's 2011 State tax rate for a product that otherwise qualified as candy?

Plain-English summary

Liquor filling did not create a separate candy-rate rule under the law described in this 2011 GIL. The requester asked how sales tax applied to liquor-filled candies.

The Department said candy had moved to the 6.25% State general-merchandise rate beginning September 1, 2009, while qualifying food, drugs, medicines, and medical appliances used a lower 1% State rate plus applicable local taxes. It defined candy as a sweetened preparation with chocolate, fruit, nuts, or other ingredients or flavorings in bars, drops, or pieces, excluding preparations that contained flour or required refrigeration.

The law changing candy's rate did not distinguish between candy with and without liquor filling. Those numerical rates describe the law addressed in 2011.

What this means for you

Liquor filling alone did not move an otherwise qualifying candy into a different category under this GIL. Confirm the product meets the candy definition and check current Illinois State and local rates before charging tax.

Common questions

Q: Did liquor-filled candy receive the lower food rate in this GIL?
A: No. The letter says the candy-rate law did not distinguish liquor-filled candy from other candy.

Q: Could a sweet product fall outside the candy definition?
A: Yes. The definition excluded a preparation containing flour or requiring refrigeration.

Q: Are the 1% and 6.25% rates current?
A: This page reports the historical rates stated in the 2011 letter; current rates must be verified separately.

Subject

Food, Drugs & Medical Appliances

Source

• Landing page: https://taxarchive.illinois.gov/research/legal/letter-rulings/sales-tax/2011.html
• Original PDF: https://tax.illinois.gov/content/dam/soi/en/web/taxarchive/research/legal/letter-rulings/sales-tax/2011/st-11-0011.pdf

Original ruling text

ST 11-0011-GIL 03/28/2011 FOOD, DRUGS & MEDICAL APPLIANCES
This letter concerns the low 1% State rate of tax applicable to certain food. See 86 Ill. Adm.
Code 130.310. (This is a GIL.)

March 28, 2011

Dear Xxxxx:
This letter is in response to your letter dated January 7, 2011, in which you request
information. The Department issues two types of letter rulings. Private Letter Rulings (“PLRs”) are
issued by the Department in response to specific taxpayer inquiries concerning the application of a
tax statute or rule to a particular fact situation. A PLR is binding on the Department, but only as to the
taxpayer who is the subject of the request for ruling and only to the extent the facts recited in the PLR
are correct and complete. Persons seeking PLRs must comply with the procedures for PLRs found in
the Department’s regulations at 2 Ill. Adm. Code 1200.110. The purpose of a General Information
Letter (“GIL”) is to direct taxpayers to Department regulations or other sources of information
regarding the topic about which they have inquired. A GIL is not a statement of Department policy
and is not binding on the Department. See 2 Ill. Adm. Code 1200.120. You may access our website
at www.tax.illinois.gov to review regulations, letter rulings and other types of information relevant to
your inquiry.
The nature of your inquiry and the information you have provided require that we respond with
a GIL. In your letter you have stated and made inquiry as follows:
ABC is requesting a written opinion as to how sales tax would be charged on liquor filled
candies.
I have attached information about the candies in question.
Thank you in advance for your time and assistance.

DEPARTMENT’S RESPONSE:
All gross receipts from sales of tangible personal property in Illinois are subject to Retailers'
Occupation Tax and Use Tax unless an exemption is specifically provided. Qualifying food, drugs,
medicines and medical appliances are not taxed at the general merchandise rate of 6.25%. These
items are taxed at a lower state rate of 1% plus any applicable local taxes. See 86 Ill. Adm. Code
130.310 and 130.311.
Food that is to be consumed off the premises where it is sold (other than alcoholic beverages,
soft drinks, and food that has been prepared for immediate consumption) is taxed at the rate of 1%
plus applicable local taxes. Food is defined as any solid, liquid, powder or item intended by the seller
primarily for human internal consumption, whether simple, compound or mixed, including foods such
as condiments, spices, seasonings, vitamins, unsweetened bottled water and ice. Beginning
September 1, 2009, all candy is taxable at the State 6.25% general merchandise rate. Candy is

defined as a preparation of sugar, honey, or other natural or artificial sweeteners in combination with
chocolate, fruits, nuts or other ingredients or flavorings in the form of bars, drops, or pieces. Candy
does not include any preparation that contains flour or requires refrigeration.
The law that changed the tax rate on candy did not distinguish between candy with and without
liquor filling.
I hope this information is helpful. If you require additional information, please visit our website
at www.tax.illinois.gov or contact the Department’s Taxpayer Information Division at (217) 782-3336.
Very truly yours,

Richard S. Wolters
Associate Counsel
RSW:msk