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CALIFORNIA VOTERS REJECT SNACK TAX

 CALIFORNIA VOTERS REJECT SNACK TAX
 ALEXANDRIA, Va., Nov. 4 /PRNewswire/ -- In a resounding defeat of


the so-called "snack tax," California voters on Nov. 3 overwhelmingly approved Proposition 163, which repeals the tax and amends the California constitution to prohibit all food and water from future taxation in the state.
 Proposition 163 captured 66 percent of the vote, thanks to California consumers fed up with arbitrary sales taxes placed on many food and bottled water products. Passed in June 1991, the tax caused massive confusion among consumers, retailers, manufacturers and state regulatory officials, who were stuck with the task of deciding which foods were taxed and which were not.
 "California consumers are the big winners today now that this regressive tax is history," said Jim Shufelt, president of the Snack Food Association, an Alexandria-based trade association that represents snack manufacturers. "From day one of this tax, not even the sponsors of the measure understood how it would be defined and administered. Regulators wasted valuable time debating the minutiae of this ridiculous tax instead of spending their time addressing the state's real problems. Worst of all, it imposed the greatest burden on low- and moderate-income individuals and families, who are least able to pay."
 Shufelt also expressed hope that legislators in other states would learn from the experience of California. "The people have spoken, and they are being heard beyond the borders of California," he said. "Their message is that taxing food, especially in tough times, is unacceptable. Such discriminatory tax policy is unfair to manufacturers, retailers and, most importantly, consumers."
 SFA is an international trade association of about 900 company members that represents snack manufacturers and suppliers to the snack food industry. Snacks produced and sold by SFA members include potato chips, corn chips, tortilla chips, pretzels, popcorn, pork rinds, nuts, extruded snacks, dried meat snacks, multigrain chips, bite-size crackers, cracker sandwiches, filled products, party mix, trail mix, bagel chips, fruit snacks, dips and dip mixes.
 -0- 11/4/92 R
 /NOTE: For further information, contact Jim McCarthy at the Snack Food Association, 1711 King St., Suite One, Alexandria, Va., 22314./
 /CONTACT: Jim McCarthy, vice president of government relations, Snack Food Association, 703-836-4500/ CO: Snack Food Association ST: California IN: SU: LEG


KD -- DC030 -- 2634 11/04/92 15:52 EST
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Date:Nov 4, 1992
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