Are Pumpkins Tax Exempt in the Fall?
In three states, Pumpkins Are Exempt from Sales Tax…Unless They’re For Carving.
Sometimes, sales tax laws just don’t seem to make sense. Like, who in Indiana thought it was so important to make a distinction between marshmallows and marshmallow creme? Well, in Indiana, you’ll have to pay sales tax on your marshmallows, but your marshmallow creme gets off tax-free.
Pumpkins are exempt from sales tax in Iowa, Pennsylvania, and New Jersey, but only if the pumpkins are for food rather than jack-o-lanterns. Sounds like someone likes Thanksgiving more than Halloween!
To check out more weird tax laws click here.
Teresa Farnsworth is the Account Manager at Zip2Tax. She works closely with her clients to make sure they have just what they need to collect the right amount of sales or use tax in the U.S. and Canada.