Are honey-roasted peanuts taxable in New York, or are they exempt food?

Plain-English summary

Barbara Fader, a Bayside consumer, asked whether sales tax should be charged on Planters Honey Roasted Peanuts. The product is dry-roasted peanuts with a light honey glaze onto which grains of sugar are encrusted; per the label, the principal ingredients after peanuts are sugar and honey.

The Department said yes, they're taxable:

• Food is generally exempt — but candy isn't. Tax Law § 1115(a)(1)(i) exempts food and food products sold for human consumption but not candy and confectionery. Regulation § 528.2(a)(1) says the same.
• Glazed/sugar-coated nuts are candy. Regulation § 528.2(a)(4) defines "candy and confectionery" to include, without limitation, "glazed or sugar-coated fruits, nuts, peanuts, popcorn or other products." Honey Roasted Peanuts are glazed and sugar-coated, so they fall squarely within that definition.
• Result: Because candy and confectionery are excluded from the food exemption, the sale of Planters Honey Roasted Peanuts is subject to sales tax under § 1105(a).

What this means for you

Plain groceries are exempt; candy is the big exception

New York exempts most food and food products sold for human consumption, but candy and confectionery are taxable. That line catches products that look like snacks or grocery items but are sweetened or coated.

"Sugar-coated" or "glazed" is the trigger for nuts and snacks

The regulation specifically lists glazed or sugar-coated nuts, peanuts, and popcorn as candy. Plain roasted or salted peanuts are exempt food; add a honey/sugar glaze and the same peanuts become taxable candy.

Retailers: check the label and coating, not just the aisle

Whether a snack is taxable turns on what it is (and often what the label/advertising indicates), not where it sits in the store. Sweet-coated versions of otherwise-exempt snacks should be rung up as taxable.

Common questions

Q: Are honey-roasted peanuts taxable in New York?
A: Yes. They're glazed, sugar-coated nuts, which count as taxable candy and confectionery under § 528.2(a)(4), outside the food exemption.

Q: Are plain peanuts taxable too?
A: No. Plain (uncoated) peanuts are exempt food; the tax here turns on the honey/sugar glaze.

Q: What makes something "candy and confectionery"?
A: The regulation lists items like glazed or sugar-coated fruits, nuts, peanuts, and popcorn, chocolate, chewing gum, mints, and similar products regarded as candy based on their normal use or label/advertising.

Q: Does the food exemption ever cover candy?
A: No. Tax Law § 1115(a)(1)(i) exempts food but expressly excludes candy and confectionery.

Citations and references

Statutes, regulations, and authorities:

• Tax Law § 1115(a)(1)(i) (exemption for food, food products, beverages, dietary foods and health supplements sold for human consumption, excluding candy and confectionery)
• Tax Law § 1105(a) (tax on retail sales of tangible personal property)
• 20 NYCRR § 528.2(a)(1) (food and food products exempt except candy and confectionery)
• 20 NYCRR § 528.2(a)(4) (candy and confectionery include glazed or sugar-coated fruits, nuts, peanuts, popcorn, and similar products)

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_1991.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a91_69s.pdf

Original ruling text

New York State Department of Taxation and Finance

Taxpayer Services Division
Technical Services Bureau

TSB-A-91 (69)S
Sales Tax
November 8, 1991

STATE OF NEW YORK
COMMISSIONER OF TAXATION AND FINANCE
ADVISORY OPINION

PETITION NO. S910917A

On September 17, 1991 a Petition for Advisory Opinion was received from Barbara Fader,
23-35 Bell Blvd., Apt. 6G, Bayside, New York 11360.
The issue raised by Petitioner, Barbara Fader, is whether sales tax should be charged on the
sale of Planters Honey Roasted Peanuts.
Planters Honey Roasted Peanuts are dry roasted peanuts that contain a light glaze of honey
on to which is encrusted grains of sugar. According to the label on the product, its principal
ingredients after peanuts are sugar and honey.
Section 1115(a)(l)(i) of the Tax Law provides that:
(a) Receipts from the following shall be exempt from the tax on retail sales
imposed under subdivision (a) of section eleven hundred five and the compensating
use tax imposed under section eleven hundred ten:
(1)

Food, food products, beverages, dietary foods and
health supplements, sold for human consumption but
not including (i) candy and confectionery.

Section 528.2(a)(1) of the Sales and Use Tax Regulations provides that:
Food and food products, except candy and confectionery, when sold for
human consumption, are exempt from sales and compensating use tax.
Section 528.2(a)(4) of the Sales and Use Tax Regulations provides that:
(4) Candy and confectionery include, without limitation, candy of all types,
chocolate (plain or mixed with other products); glazed or sugar-coated fruits, nuts,
peanuts, popcorn or other products; chewing gum; mints; lollypops, fruit flavored
sticks, fruit drops, licorice, pastilles; cotton candy, marshmallow; marzipan, halvah
and similar products regarded as candy or confectionery based on its normal use or
as indicated on the label or the advertising thereof. (emphasis added)
Planters Honey Roasted Peanuts are glazed and sugar coated peanuts and thus are candy and
confectionery in accordance with the meaning and intent of Section 528.2(a)(4) of the Sales and Use
Tax Regulations.

-2­
TSB-A-91 (69)S
Sales Tax
November 8, 1991

Since candy and confectionery are not exempt from the imposition of sales tax in accordance
with the provisions of Section 1115(a)(1)(i) of the Tax Law and Section 528.2(a)(1) of the Sales and
Use Tax Regulations, therefore the sale of Planters Honey Roasted Peanuts is subject to the
imposition of the sales tax imposed by Section 1105(a) of the Tax Law.

DATED: November 8, 1991

s/PAUL B. COBURN
Deputy Director
Taxpayer Services Division

NOTE: The opinions expressed in Advisory Opinions
are limited to the facts set forth therein.