'Snack tax' repeal on way to governor

April 02, 1996|By FROM STAFF REPORTS

The state Senate gave final approval last night to a bill that will repeal Maryland's 5 percent tax on such foods as potato chips, corn chips, cheese puffs, pretzels and nuts sold in grocery stores and vending machines.

Repeal of the so-called "snack tax" was a priority of Gov. Parris N. Glendening and will take effect July 1, 1997.

Opponents of repeal complained that it will cost the state $14 million to $16 million in lost revenue annually, while supporters said it was necessary to improve the state's business climate.

Executives of Frito-Lay had threatened to postpone any future expansion of their manufacturing and distribution plant in Aberdeen until the tax was eliminated.

Pub Date: 4/02/96

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