Eating candy or drinking soda may soon be a taxing experience in the city of Lakewood as the City Council is set to approve a 3 percent sales tax on those goods.
The council approved first reading of an ordinance Aug. 13 to enact the new tax and set a public hearing for Aug. 27.
If it’s approved, Lakewood would begin collecting the tax on candy and soft drinks Oct. 1.
At the same time, the city would stop taxing foods for “immediate consumption,” an often-confusing category that covers single-serving items such as small bags of potato chips, sunflower seeds and beef jerky, said Larry Dorr, the city’s finance director and treasurer.
“It’s going to be simpler for businesses. It’s going to be simpler for consumers,” Dorr said.
The overall tax burden should not change, Dorr said. The city does not expect the new tax to bring in any more or less revenue than the tax it is replacing.
Since 2009, the city of Lakewood has taxed only food intended for immediate consumption. Food for home consumption — unprepared foods such as raw hamburger or larger quantities of items such as potato chips — was exempt.
When the state of Colorado began taxing candy and soda in 2010, though, the city started to hear from retailers, Dorr said.
“If you buy a 12-pack of Pepsi-Cola, the city of Lakewood doesn’t tax it because it’s more for home consumption. But the state does tax it,” Dorr said. “All of a sudden, we had more and more confusion.”
Under the new rules, all grocery foods will be exempt from sales tax, while all soda and candy — regardless of size — will be subject to state and city taxes.
The city of Aurora implemented a similar tax on candy and soft drinks in June.
Emilie Rusch: 303-954-2457 or erusch@denverpost.com
