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Colo. vending-machine companies’ hike costs on sweet treats

Tim HooverThe Denver Post

Spare dimes and quarters are in high demand this month as Coloradans headed to the break room for a soda or a sweet treat scrounge for change to cover price hikes.Vending-machine companies say the increases are at least partly caused by a new 2.9 percent sales tax on sweetened drinks and snacks. But the sponsor of the bill that implemented the tax said vendors appear to be “taking advantage of” the situation.Lou Langdon, president of G&S Vending, said prices for a 20-ounce bottle of soda have increased from a typical rate of $1.25 to $1.35 or up to $1.50.So, if the 2.9 percent tax on a bottle of soda from the vending machine rounds up to 4 cents, why are sodas as much as a quarter more?Langdon said vending-machine companies must cover the new costs they will incur from having to keep track of sales on items that are taxable and items that aren’t. But he said there are other factors too.”In some instances, the price increases that we had from our wholesalers that we hadn’t passed on over the years are causing us to raise prices,” he said.A new law took effect May 1 eliminated the state sales-tax exemption for soft drinks and sugary treats. For more of this Denver Post story: http://www.denverpost.com/ci_15095018


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