CHARLOTTE — One ingredient could mean the difference between paying more or less for Halloween candy in North Carolina.
The state is one of 24 that defines candy as a food that does not have flour as an ingredient. That means it often faces higher sales tax rates. However, candy with flour can face lower tax rates.
For example, buying a Twix Bar, which has flour listed as an ingredient, versus Hershey’s, which doesn’t, could save you up to 7% on taxes.
This trick is especially helpful right now, as candy prices are up 8%, according to the Bureau of Labor Statistics. On average, prices are 13% higher now than five years ago, driven by rising costs of chocolate.
[ READ MORE >> Higher candy prices hit shoppers ahead of Halloween ]
The National Retail Federation reports that the average person is spending $115 on Halloween and is projecting Halloween spending to reach a high of $13.5 billion this year.