Candy is taxable. Candy is the preparation of sweeteners in combination with chocolate, fruits, nuts, or other ingredients or flavorings in the form of bars, drops, or pieces, regardless of size.

Examples of taxable candy include:
•    Almond bark
•    Breath mints
•    Breakfast and nutrition bars without flour
•    Candy bars
•    Caramel apples
•    Caramel corn
•    Chocolate chips
•    Chocolate-coated potato chips
•    Chocolate or carob covered raisins, nuts, etc. 
•    Gum
•    Fruit roll-ups
•    Honey roasted and honey coated nuts, beer nuts 
•    Marshmallows
•    Peanut brittle
•    Sugarless candy
•    Sweet or semi-sweet cooking bars or chips
•    Yogurt covered raisins, nuts, etc.

Items that Are Not Candy

An item it is not considered candy if the product contains flour or requires refrigeration. 

Flour 

When an item has flour listed on the ingredient label, it is not considered candy and is not taxable.

Examples of flour include, but are not limited to:
•    Brown flour
•    Corn flour
•    Rice flour
•    White flour
•    Whole wheat flour

Ingredients such as soy or whey used in place of flour, are not flour.

Refrigeration

If an item requires refrigeration, it is not candy. For example, ice cream bars require refrigeration, and are not taxable. These items are taxable if they are prepared food. See Prepared Food. 

Candy that does not require refrigeration is taxable even if it is sold frozen.

Cotton Candy 

Cotton candy is not considered candy because it is not sold in the form of bars, drops, or pieces. Cotton candy is taxable when prepared by the seller.

Vending Machine Sales

Candy sold through vending machines is taxable. See Vending Machines and Other Coin-Operated Devices.

Cannabis and Hemp Products

Cannabis and hemp products are taxable. See Cannabis Guide.

Sweeteners 

Examples of sweeteners include:
•    Artificial sweeteners
•    Aspartame 
•    Barley malt 
•    Corn syrup 
•    Dextrose 
•    Evaporated cane juice 
•    Fructose 
•    Fruit juice concentrates 
•    Honey 
•    Invert sugar 
•    Molasses 
•    Rice syrup 
•    Saccharin
•    Stevia 
•    Sucralose 
•    Sucrose 

Legal References

Minnesota Statutes

297A.61, Definitions

• subd. 3(d), Sale and purchase
• subd. 33, Candy  

Minnesota Rules

8130.4700, Prepared Food, Candy, and Soft Drinks 

Publications

• Cannabis Guide
• Dietary Supplements
• Eating Establishments
• Food and Food Ingredients  
• Prepared Food
• Sales and Use Tax Business Guide
• Soft Drinks and Other Beverages
• Vending Machines and Other Coin-Operated Devices