Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 70 - Sales and Use Tax › Part 4 - Local Meals and Beverage Tax (280-RICR-20-70-4) › Section 280-RICR-20-70-4.11 - Items Not Included as Food or Food Ingredients

Current through June 14, 2024
A. The following items are not considered
				 food and food ingredients and are therefore subject to sales and use tax.
1. Alcoholic Beverages as defined in §
											4.5(A)     of
				 this Part are subject to tax.
2.
				 Candy as defined in §
											4.5(C)     of
				 this Part is subject to sales tax, however many products commonly categorized
				 as candy contain flour therefore packaging labels must be examined to determine
				 which items are deemed taxable candy or exempt food products (contains flour).
a. Examples of items exempt after January 1,
				 2007 include KitKats, Twix, some licorice, Nestle Crunch, and Milky
				 Way.
b. If an item that would
				 otherwise be included in the definition of "candy" above requires refrigeration
				 under health regulations, it would be deemed an exempt food product. Candy that
				 does not require refrigeration is taxable even if sold as such. For example, a
				 number of candy bars that are regularly marketed at room temperature in the
				 candy aisle may also be found in the refrigerated section of a convenience
				 store. These products are refrigerated for customer preference rather than as
				 directed on the label. Therefore, these items are not exempt from sales
				 tax.
3. Dietary
				 Supplement as defined in §
											4.5(E)     of
				 this Part is subject to tax. This means any product intended to supplement the
				 diet required to be labeled as a dietary supplement, identifiable by the
				 "Supplemental Facts" box found on the label and as required pursuant to Federal
				 law. Dietary supplements sold on prescription are not subject to tax.
4. Prepared Food and Meals are subject to tax
				 based on the definitions in §
											4.5(I)     of
				 this Part and the application of the Threshold Test in §
											4.13     of this Part.
5. Soft Drinks as defined in §
											4.5(J)     of
				 this Part are subject to sales tax.
a. Frozen,
				 or powdered soft drink mixes are not deemed to fall within the definition of
				 "soft drink", which must be in liquid form, and are therefore exempt as
				 foods.
b. Taxable soft drinks
				 include, but are not limited to:
(1)
				 Naturally and artificially sweetened water,
(2) Teas containing sweeteners,
(3) Drinks labeled as containing 50 percent
				 or less fruit or vegetable juice,
(4) Sports drinks (Gatorade, PowerAde, etc.),
				 and
(5) Sodas (colas, root beer,
				 artificially sweetened diet colas, ginger ales, etc.).
c. Items that are deemed exempt food
				 products, rather than taxable soft drinks include, but are not limited to:
(1) Unsweetened Water (regardless of
				 carbonation),
(2) Fruit or
				 vegetable juices that contain more than 50 percent juice by volume,
(3) Nutritional drinks that contain soy
				 (Ensure, Boost, etc.),
(4) Apple
				 cider,
(5) Beverage powders
				 (Kool-Aid, lemonade, sweetened iced tea), and
(6) Frozen fruit juice concentrates (product
				 is not in liquid form).