tax-law michigan
In Michigan, are cough drops a taxable item?
<p>In Michigan, are cough drops taxable? I was told they are seen as candy, and therefore not taxed. I just purchased some and was charged tax. Also, I was told bagged ice is a taxable item. Is this true?</p>

<p>See p. 3 of this <a href="https://www.michigan.gov/documents/treasury/RAB_2009-8_Food_for_Human_Consumption_Oct_09_299470_7.pdf" rel="nofollow noreferrer">Michigan state document</a>:</p>

<blockquote>
  <p>The sale of ice for human consumption is not subject to sales or use
  tax.  Ice sold for other uses (e.g., for cooling the contents of an
  ice chest, for use in an ice cream maker, for medical purposes) is
  subject to sales or use tax. Bagged  (e.g.,  cubed  or  crushed)  ice 
  is  presumed  for  ingestion/chewing  by  humans  and  exempt.  The
  seller bears the responsibility for sales tax if this presumption is
  overcome. Ice sold in block form is presumed not for ingestion/chewing
  by humans and taxable.  If this presumption is overcome by specific
  information provided by the purchaser, the seller is not  responsible
  for sales tax</p>
</blockquote>

<p>So bagged ice should be tax-exempt. They also state that</p>

<blockquote>
  <p>“Food and food ingredients” are substances, whether in liquid,
  concentrated, solid, frozen, dried, or dehydrated form, that are sold
  for ingestion or chewing by humans and are consumed for their taste 
  or  nutritional  value.</p>
</blockquote>

<p>It is debatable whether cube ice is sold for ingestion or chewing by humans, although some people do so; it is arguably <em>not</em> the case that people consume ice for its taste or nutritional value. So it would depend on which part of the state guidelines you read. (Alcoholic beverages, which are otherwise obviously food, are specifically excluded).</p>

<p>The status of cough drops is harder to determine since there is no explicit guideline, but they would seem to pass the "consumption for taste" test.</p>
