Stay-puff tax exemption

Washington Monthly, June, 2003

Perhaps states' budget woes aren't so bad. Despite nationwine revenue shortfalls, New York has extended a tax exemption for large (but not small) marshmallows. Until five years ago, large marshmallows were considered candy, which is subject to sales tax, while small ones were classified as food, which is not.

As part of a 1998 measure, up for renewal this year, all marshmallows won equal treatment under the law.