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 is not considered food or food ingredients for sales tax purposes; therefore, sales of candy are subject to the standard 7% state sales tax rate, plus the applicable local sales tax rate.
Reference: Important Notice 17-22. Tenn. Code Ann. §§ 67-6-102 and 67-6-228.
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