Please state your intentions for buying that pumpkin (and complete form #4675)

October 28, 2007

pumpkin.jpg

Now this is scary.  More bizarro tax news courtesy of the Iowa Department of Revenue:

The Department recently refined its position on whether pumpkins are subject to Iowa sales tax to more closely match what we believe to be their predominant use.

In the past, pumpkins were exempt from sales tax as a food (edible squash), even if they were to be later made into jack-o’-lanterns or used as decorations.

Our position now is that pumpkins are taxable if:

1. They are advertised to be used as jack-o’-lanterns/decorations, or
2. It is understood that they will be used as jack-o’-lanterns/decorations

Pumpkins are exempt in the following circumstances:

1. The buyer completes a sales tax exemption certificate stating they will be used as food, or
2. The pumpkins are a specific variety used to make pumpkin pies and are advertised in that way, or
3. They are purchased with Food Stamps.

Retailers who sell pumpkins should keep these guidelines in mind and make any necessary changes to their tax treatment of pumpkin sales.[emphasis added]

Couldn’t the bureaucrats at the IDOR be doing something more productive with their time than divining my reasons for purchasing an Iowa pumpkin?  And why is purchasing a pumpkin with food stamps an exemption?  People on food stamps don’t carve pumpkins?  And what happens if you carve the pumpkin and roast the seeds?  Is that food or fun? 

(h/t the Tax Foundation)

Advertisements

2 Responses to “Please state your intentions for buying that pumpkin (and complete form #4675)”

  1. Alexwebmaster Says:

    Hello webmaster
    I would like to share with you a link to your site
    write me here preonrelt@mail.ru

  2. Rudy Says:

    Hello,

    My name is Rudy and after examining your website, I believe I can help you improve your Search Engine Rankings.

    Do you wish you could increase your online leads? Getting much more traffic from search engines?
    It is much easier and more cost-effective than you might think. We have helped a lot of businesses thrive in this market and we can help you!

    If you are interested in outranking your competition please visit http://www.seoimprove.net or mail me at rudy@seoimprove.net


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: