Sales of bottled water are subject to sales or use tax effective August 1, 2017.
What is bottled water?
Bottled water is water sold in a safety-sealed container or package. Bottled water is calorie free and does not contain sweeteners or other additives except that it may contain: antimicrobial agents; fluoride; carbonation; vitamins, minerals, and electrolytes, oxygen, preservatives and only those flavors, extracts, or essences derived from a spice or fruit.
Bottled water includes water that is delivered to the buyer in a reusable, safety-sealed container.
Bottled water does not include ice or water that is dispensed from a self-service dispenser.
SNAP (food stamp) program
Sellers do not need to collect sales tax if a buyer is purchasing bottled water under the Supplemental Nutrition Assistance Program (SNAP), formerly known as the food stamp program.
For more information from the Department of Revenue, click here.