A Simple Matter Of Tax Fairness

North Carolina will receive needed revenue, and the state’s tax system will become more uniform and fair, if the General Assembly approves a bill to tax all soft drinks and candy at the same rate. The state’s 4.5 percent sales tax applies to drinks and candy that are sold for home consumption but not to those sold for immediate consumption. That means no sales tax on those items bought at the supermarket and 4.5 cents on the dollar if they are bought at a soda fountain.

The Senate Finance Committee voted Monday to apply the 4.5 percent sales tax on soft drinks and candy across the board. The legislature should approve the measure. It would, for starters, bring in an additional $30 million per year. More important, it would be fairer to those retailers who have to charge and pay the tax when many of their competitors don’t.

Retailers who sell soft drinks and sweets say the present system is confusing and difficult to comply with. For example, when a customer walks into a convenience store and purchases a cold, bottled Coke, is the clerk supposed to ask, “Are you going to drink that here or take it home?”

There is no major opposition to the Senate bill except for the predictable reaction by the state Republican Party. The GOP is chanting the no-new-taxes mantra. Even the N.C. Retail Merchants Association and the soft drink industry support the bill.