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
