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Wednesday, October 31, 2007
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Taxing Halloween

Remember... the government always takes their cut... even at the expense of children's fun:

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.

Yup... have to make sure that little Johnny who wants to decorate his pumpkin also gets an early civics lesson so he can help pay for his school lunch.  Via The Agitator.

# Posted at 9:30 PM by Nick  |  Comment Feed Link 1 Comment  |  No Trackbacks

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Thursday, November 01, 2007 8:59:10 AM (Central Daylight Time, UTC-05:00)
And the kicker is, if you don't want to have to pay the tax, you have to give up your phone number and ignore the instructions on the back of the form in order to put in "private citizen/end user" and "used for food".

Will the Iowa DOR be sporting MP-5s or M-4s when the conduct their patrols of Des Moines' suburbs (and yes, I am serious; according to Iowa law, use of the pumpkin carcass as a jack-o-lantern does invalidate the exemption whether or not the innards were used for "tax-exempt" pumpkin pies)?

All that for at best a couple hundred thousand dollars. I can think of another food item to "give" the Iowa DOR, preferably a couple days past its expiration date.
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