Scrooge Arrives Early: Iowans Face New Tax This Year--On Jack O'Lanterns!

[piesRsquare]

Tax law: Are you eating those pumpkins?
Tue Oct 30, 10:18 PM ET

DES MOINES, Iowa - The Iowa Department of Revenue is taxing jack-o'-lanterns this Halloween. The new department policy was implemented after officials decided that pumpkins are used primarily for Halloween decorations, not food, and should be taxed, said Renee Mulvey, the department's spokeswoman.

"We made the change because we wanted the sales tax law to match what we thought the predominant use was," Mulvey said. "We thought the predominant use was for decorations or jack-o'-lanterns."

Previously, pumpkins had been considered an edible squash and exempted from the tax. The department ruled this year that pumpkins are taxable — with some exceptions — if they are advertised for use as jack-'o-lanterns or decorations.

Iowans planning to eat pumpkins can still get a tax exemption if they fill out a form.

The new policy, published in the department's September newsletter, has some pumpkin farmers feeling tricked this Halloween.

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Danny Carroll, who owns Carroll's Pumpkin Farm in Grinnell with his wife, said he will have to pay the sales tax out of profits.

"Essentially, they just reduced our income by 6 percent," he said. "It's too bad, but it's not surprising." (emphasis added)

More here: http://news.yahoo.com/s/ap/20071031/ap_on_fe_st/pumpkin_tax
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Is ANYBODY allowed to make a living anymore?!

[Skidmore]

1. Well, this Iowan just got her annual pumpkin from the neighbor

and cooked it down and two pumpkin pies are smiling at me when I open the fridge. The rest of it is in freezer bags for later use.

What a bunch of idiots. When did they sneak that one by? I didn't plant pumpkins this year, but will plant next for sure.

[MiniMe]

2. He should have been charging sales tax to the customers

Sales tax is not supposed to harm the merchant, it is supposed to be a pass-through transaction.

[riverdeep]

3. Are you sure this isn't from the Onion?

"Iowans planning to eat pumpkins can still get a tax exemption if they fill out a form."

Good ole bureaucracy.