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Snack Tax

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NEWS
April 16, 1995
With the legislature's failure to repeal the state 5 percent snack tax, chipmaker Frito-Lay Inc. says it will expand plants elsewhere and not at its Harford County facility. That could cost Maryland from 400 to 650 new jobs over the next several years.But we believe there is still a chance to gain job expansion at Frito-Lay's operation in Aberdeen, if state and local officials get their act together now and make a firm pledge to the Pepsico subsidiary that they will aggressively push repeal next year.
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NEWS
March 12, 2014
District 12 (Howard and Baltimore Counties) has three House of Delegate seats up for grabs. That's a healthy 2.1 percent of our state's total. Here are my sanguine impressions from a Democratic candidate forum held March 6. Nine of 10 candidates present agreed that the Cove Point pipeline should not be built, and similar concern was expressed about hydraulic fracking more generally. Adam Sachs boldly noted that jobs in this case might not be the highest priority. All candidates support a $10.10 minimum wage with COLAs.
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NEWS
April 7, 1995
The state's 5 percent snack tax was born of fiscal desperation three years ago, and has since become a reliable revenue producer of nearly $15 million a year. With snack sales little affected by the tax, or by changes in economic conditions, the impost is a hard one for legislators to give up.Consumers and merchants don't seem overly vexed by the tax, which is levied on such "salty" snacks as pretzels and chips, but not on baked snacks such as cupcakes.The main opponent is Frito-Lay Inc. and Harford County, where that snackmaker has a factory-warehouse employing 150 people.
NEWS
December 28, 2007
It's never a bad idea to check out what's going on in California. Whether it's a new plastic surgery procedure or a prohibition on smoking in restaurants, if they're doing it in Los Angeles or San Francisco, chances are good that a few years later, they'll be doing it here. So soft-drink lovers should note the latest foray into well-intentioned social engineering by San Francisco Mayor Gavin Newsom. The city by the bay made headlines this year when it moved to ban plastic shopping bags and also banished bottled water from City Hall vending machines.
NEWS
By John E. Woodruff and John E. Woodruff,Sun Staff Writer Sun staff writer John W. Frece contributed to this article | December 8, 1994
ABERDEEN -- Gov. William Donald Schaefer will reverse himself and submit a bill to end the "snack tax," which became a symbol of Maryland's troubled business climate when it threatened to choke off expansion of a hard-won Frito-Lay production line here."
NEWS
December 12, 1994
State legislators should take a careful look at the lame-duck governor's last-minute pitch to repeal the "snack tax", which imposes the 5 percent sales tax on certain snack foods.Gov. William Donald Schaefer proposed the legislation, while touring the Frito-Lay pretzel factory-warehouse in Aberdeen last week, to improve Maryland's bad reputation with business.This abrupt about-face by Mr. Schaefer, after he originally sponsored the snack tax in 1992, was tied to a long-standing complaint by Frito-Lay Inc. that it could quadruple the current workforce level at Aberdeen (to 600 workers)
NEWS
By FROM STAFF REPORTS | April 2, 1996
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.
NEWS
By Sherrie Ruhl and Sherrie Ruhl,Sun Staff Writer | April 13, 1995
Gov. Parris N. Glendening promised yesterday to work harder next year to get the General Assembly to repeal the state's snack tax after a barrage of criticism by politicians, trade associations and companies blaming him for its defeat.Failure to repeal the snack tax cost Harford County about 650 potential jobs at Frito-Lay Co.'s Aberdeen plant. The company, angry about the tax, said it would expand plants elsewhere.The governor said he planned to ask legislative leaders to meet in a few weeks.
NEWS
By Sherrie Ruhl and Sherrie Ruhl,SUN STAFF | November 29, 1995
Harford County Executive Eileen M. Rehrmann urged local legislators yesterday to bolster economic development in the county by repealing Maryland's snack tax during the next General Assembly session.Speaking to the county delegation, Mrs. Rehrmann said the sales tax could slow further expansion at Frito-Lay Inc.'s Aberdeen plant. The 3-year-old 5 percent tax applies to salty, unbaked snacks such as pretzels, nuts and chips."Other states which do not have this tax are knocking on Frito-Lay's door, attempting to persuade them to move," she said during the meeting at Harford Community College.
NEWS
By MIKE BURNS | May 7, 1995
What if the state of Maryland simply gave Harford County $1 million a year as compensation, and kept the $14 million or so remaining in "snack tax" revenues for the state treasury?Wouldn't both sides come out ahead? They wouldn't even have to resort to those fuzzy, speculative "economic ripple" calculations that attempt to project spending effects of a new job. And Harford wouldn't have to wait until after the millennium to get the full financial benefit.Of course, Gov. Parris Glendening and the General Assembly leadership did the proper thing instead.
NEWS
By THOMAS F. SCHALLER | November 7, 2007
Let's start with a confectionary confession: I like snacks. Friends have accused me of single-handedly - sometimes double-handedly - supporting the Little Debbie snack cakes empire. My family knows I hold a special place in my belly and heart for those creme-centered, round Goetze's caramels that my grandfather stowed in the little compartment between the car seats. I also have a weakness for Doritos. So imagine my visceral unease, figuratively and literally, to news that Maryland legislators are yet again considering a tax on snack foods.
NEWS
By Ted Shelsby and Ted Shelsby,SUN STAFF | April 18, 2004
Looking back, Del. Barry Glassman, chairman of the Harford County legislative delegation, declares that this year's General Assembly session was the most rancorous he has ever experienced. Despite the ill will and malice - much of it centered on Gov. Robert L. Ehrlich Jr.'s push for slot machines as a revenue producer - Glassman said, "We [the delegation] were able to avoid much of the fighting. We are able to fly below the radar and get most of our bills through. "There were some scary moments," he admits, as some bills were hung up for long periods by the battle over slots, "but between keeping the snack tax out and getting the impact fee passed, we did pretty good.
NEWS
By Ted Shelsby and Ted Shelsby,SUN STAFF | March 24, 2004
At the urging of the Harford County delegation, the House Ways and Means Committee has eliminated a 5 percent snack tax from its proposed budget bill. The tax, which would have generated an estimated $16 million a year in revenue, was a major concern of Harford officials, including County Executive James M. Harkins, who said it represented a major threat to a possible expansion of the Frito-Lay Inc. plant in Aberdeen. With 418 workers, Frito-Lay is Harford County's largest manufacturing employer.
NEWS
By Ted Shelsby and Ted Shelsby,SUN STAFF | March 21, 2004
Harford County delegates to the General Assembly are rallying their forces to block passage of a proposed 5 percent sales tax on snack foods that county officials say would threaten the future expansion of the Frito-Lay Inc. plant in Aberdeen. With 418 workers, Frito-Lay is the county's largest manufacturing employer and a major contributor to the county's fast-growing economic base. Lynn Markley, a spokeswoman for Frito-Lay, which is based in Plano, Texas, said the company is not speculating on its plans but added, "A snack-food tax would certainly hinder any type of expansion" in Maryland.
NEWS
By David Nitkin and David Nitkin,SUN STAFF | March 20, 2004
The Maryland Senate approved a $23.6 billion state budget yesterday that taps reserve accounts for hundreds of millions of dollars and imposes a sales tax on salty snack foods. The House of Delegates, meanwhile, is embarking on a different direction that could include a 1-cent sales tax increase or a surcharge on the state's wealthiest residents. House Democrats plan to meet Monday in an effort to reach consensus on taxes needed to close a projected budget gap and pay for a landmark public schools program.
NEWS
By Sherrie Ruhl and Sherrie Ruhl,Sun Staff Writer Sun staff writer Bruce Reid contributed to this article | April 12, 1995
Maryland will lose as many as 650 potential jobs in Harford County because the General Assembly refused to repeal the snack tax, an irritated Frito Lay executive said yesterday.The company plans to expand plants in Georgia and Louisiana instead of Harford County because they are "extraordinarily disappointed" the General Assembly has failed to repeal the snack tax, said Robbi Dietrich, director of consumer and government affairs for Frito-Lay, a subsidiary of Pepsico Inc.The announcement left Harford officials, who were hoping Frito-Lay's Rold Gold pretzel plant in Aberdeen would be expanded by 650 workers, questioning Maryland Gov. Parris N. Glendening's and some legislators' commitment to business.
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