Indiana: Cake Decorating Tax
When creating a decorated cake in Indiana, bakers can expect to pay a tax on the finishing touches. Although frosting in containers or tubes is tax exempt, cake decorations are not. According to the state of Indiana’s tax law, frosting is “not in a bar, drop or piece” and does not qualify as candy, but cake decorations are considered candy because “they are a preparation of sweeteners and flavorings in a drop or piece form.”
