Although food and food ingredients for human consumption are generally exempt from Indiana sales tax, there are many exceptions to that broad exemption. All food sold through vending machines is taxable, as are candies, soft drinks, and many juices. However, two bills currently under consideration in the Indiana Legislature are seeking to change the taxability of juice and vending machine food. If both are enacted, these sales will be exempt.

Taxable juice

Currently, certain juices are taxable because they’re defined as soft drinks. Taxable juices include nonfrozen fruit and vegetable juices containing 50 percent or less juice, and juices containing greater than 50 percent juice that also contain natural or artificial sweeteners and are “made from concentrate through a water extraction method.” House Bill 1459 removes from the definition of “soft drinks” beverages containing greater than 50 percent fruit juice or vegetable juice by volume, “regardless of whether or not the beverage: Contains carbonated water; or

Is mixed with another vegetable or fruit juice in a manner, which before July 1, 2017, would have resulted in the beverage being included as a soft drink.” According to the fiscal note, HB 1459 “could potentially reduce sales tax revenue by an indeterminable amount. The impact will depend on sales of certain beverages containing greater than 50% vegetable or fruit juice that are currently taxable.” The bill goes a bit against a growing global trend to tax a variety of sweetened beverages, and it hasn’t received much attention since its introduction in mid-January. It was authored by Republican Rep. Robert Morris, who also authored House Bill 1460, which seeks a sales tax exemption for firearms and ammunition, and House Bill 1451, which seeks a sales tax exemption for casual sales of used passenger motor vehicles.

Food sold through vending machines