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Eaters are savers, while carvers are payers, Iowa says
Iowa's new policy taxing pumpkins that will be used as decorations is squashing growers' spirits.
By KEN FUSON
Register Staff Writer
October 31, 2007
The Iowa Department of Revenue, often accused of trying to squeeze blood out of turnips, is now searching for pennies in pumpkins.
A new department policy this year has made Halloween jack-o'-lanterns subject to the state sales tax, and many Iowa pumpkin growers are feeling tricked.
Is there room in the patch for both the Great Pumpkin and the tax man on this Halloween night?
"I don't mind paying taxes, but let's get real here, people," said Bob Kautz, owner of the Buffalo Pumpkin Patch in Buffalo, Ia., about eight miles west of Davenport.
Kautz was one of the few Iowa pumpkin sellers willing to talk publicly Tuesday about the new policy, which was published in the revenue department's September newsletter.
Renee Mulvey, the department's spokeswoman, said officials decided that pumpkins are used primarily for Halloween decorations, not food, and should be taxed. Previously, they had been considered an edible squash and exempted from the tax.
As a result, the department ruled that pumpkins are taxable if they are advertised for use as jack-o'-lanterns or decorations, or if it's understood that they will be used for that purpose.
Iowans planning to eat pumpkins can still get an exemption from the sales tax, if they fill out the "Iowa Sales Tax Exemption Certificate" form. Pumpkins also are exempt if they are of the specific variety used to make pies and are advertised that way. Pumpkins purchased with food stamps also are exempt.
http://www.desmoinesregister.com/apps/pbcs.dll/article?AID=/20071031/NEWS/710310383
Iowa's new policy taxing pumpkins that will be used as decorations is squashing growers' spirits.
By KEN FUSON
Register Staff Writer
October 31, 2007
The Iowa Department of Revenue, often accused of trying to squeeze blood out of turnips, is now searching for pennies in pumpkins.
A new department policy this year has made Halloween jack-o'-lanterns subject to the state sales tax, and many Iowa pumpkin growers are feeling tricked.
Is there room in the patch for both the Great Pumpkin and the tax man on this Halloween night?
"I don't mind paying taxes, but let's get real here, people," said Bob Kautz, owner of the Buffalo Pumpkin Patch in Buffalo, Ia., about eight miles west of Davenport.
Kautz was one of the few Iowa pumpkin sellers willing to talk publicly Tuesday about the new policy, which was published in the revenue department's September newsletter.
Renee Mulvey, the department's spokeswoman, said officials decided that pumpkins are used primarily for Halloween decorations, not food, and should be taxed. Previously, they had been considered an edible squash and exempted from the tax.
As a result, the department ruled that pumpkins are taxable if they are advertised for use as jack-o'-lanterns or decorations, or if it's understood that they will be used for that purpose.
Iowans planning to eat pumpkins can still get an exemption from the sales tax, if they fill out the "Iowa Sales Tax Exemption Certificate" form. Pumpkins also are exempt if they are of the specific variety used to make pies and are advertised that way. Pumpkins purchased with food stamps also are exempt.
http://www.desmoinesregister.com/apps/pbcs.dll/article?AID=/20071031/NEWS/710310383