Video by Matt Haugen, WSU News Service
PULLMAN – Beginning in June, bottled water and candy were no longer exempt from Washington state’s retail sales tax. Some question how effective that tax will be, and whether the tax might simply decrease the amount of sales.
Jeffrey LaFrance, WSU distinguished professor of agricultural and resource economics, is mildly optimistic about the new candy taxes. He predicts that there will only be a .8 – 1.6 percent reduction in quantities purchased by the public due to the tax.
The taxes were implemented in an effort to make up for a shortfall the state is seeing in tax revenue.
Other taxes also implemented along with the candy tax include cigarettes, increased by one dollar to $3.025 effective May 1, and soda, which will increase by $.02 per 12 oz. effective July 1.