Federal Tax Research 10th Edition by Steven Gill, Gerald Whittenburg, Roby Sawyers, Debra Sanders, William Raabe

Exercise 58

Sal Bermuda recently invested in a new flavored water that he is bottling and selling at street vendor carts throughout the city of Chicago. Sal's water is flavored with natural ingredients and just a touch of sweetener. Some of Sal's customers have been explaining how happy they are that Sal has not been charging them a $.05 bottled-water tax. Sal has never heard of such a tax and is wondering if there are any other taxes aimed specifically at his bottled water product.