The Great Pumpkin Caper

The Des Moines Register reported that the Iowa Department of Revenue has hit upon a new way to squeeze money out of taxpayers.

Apparently, these dedicated public servants discovered that some people are buying pumpkins not to eat, but to use as decorations.

This shocking revelation set them to thinking. Pumpkins, as a food item, were not subject to state sales tax. On the other hand, if they are used as a decoration, rather than as an edible squash, they must be taxable. The department adopted a new policy and began taxing pumpkins if they are advertised for use as jack-o’-lanterns or decorations.

If an Iowan wishes to eat a pumkin, as in a pumpkin pie or other seasonal treat, he can avoid paying sales tax – if he fills out an Iowa Sales Tax Exemption Certificate form. Pumpkins purchased with food stamps are also exempt from the tax.

I have not checked Minnesota tax law pertaining to this issue, but this state never misses an opportunity to raise a tax, so if Minnesota is not already taxing pumpkin sales, the Minnesota Department of Revenue will not doubt leap on the bandwagon as soon as it gets wind of the Iowa decision.

There are millions of people in this country who pay no tax at all. There are loopholes in the tax code big enough to drive a bus through which allow corporations to avoid certain taxes. But, apparently, at least in Iowa, tax officials have nothing better to do than burden growers and retailers by forcing them to detemine if consumers plan to eat a pumpkin or carve a face on it and set it on their porch.

There has been no report indicating whether or not pumpkin owners will be eligible for a tax refund when vandals steal their pumpkins and smash them in the street.

The folks in Boston had a party to protest tariffs on tea. Maybe the good people of Des Moines will be staging a pumpkin party some day soon.

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