Taxability matrix: Are pumpkins tax exempt?

Are pumpkins considered tax exempt food or non-exempt decorative items?

taxability matrix

If sales tax applies to jack-o’-lanterns, but not to edible pie pumpkins, what do you do in this case?

Pumpkins are one of those items where it isn’t clear whether the buyer is going to eat them or play with them. Only six states — Alabama, Idaho, Kansas, Mississippi, Oklahoma and South Dakota — do not exempt or at least reduce the sales tax rate on food and grocery items. This leaves pumpkin sellers with a conundrum. How is the determination to be made as to whether they are tax exempt food?

Back in 2007, Iowa briefly enacted and that same year repealed a law forcing retailers to attempt to determine whether the purchaser’s intended to eat or carve the bright orange squash. They were then supposed to charge sales tax on the carving jack-o’-lantern but exempt the sales tax for the delicious little soon-to-be treat.

The Iowa tax department sent a bulletin to retailers reminding them that where once all pumpkins were tax exempt food, now they were to be taxable if they were 1) advertised to be used as jack-o’-lanterns; and 2) they were understood to be jack-o’lanterns. How exactly one is supposed to “understand” the intended usage of a buyer and later prove that to the department of taxation is left to your imagination.

To complicate the matter even further, Iowa’s pumpkins could still be sales tax exempt if 1) the buyer presented a sales tax exemption certificate; 2) the pumpkin was of a pie variety and specifically advertised for that purpose, or 3) they were purchased using food stamps.

How are pumpkins treated in your state? Did you pay sales tax when you bought yours this year. Please comment and let us know your experience.

 

Sales and use tax changes in Zip2Tax products for January 1, 2015

Sales tax rates – January 2015

Sales tax rates – January 2015

20 sales and use tax changes in Zip2Tax products since December 2014. There were changes in Alabama, Arkansas, Arizona, Colorado, Florida, Georgia, Idaho, Illinois, Kansas, Louisiana, Minnesota, Missouri, North Dakota, Nebraska, New Mexico, Oklahoma, South Dakota, Texas, Washington and Wyoming.

In Alabama, tax rates changed for Semmes, Cordova, Pine Hill, Piedmont, Florala and Hillsboro.

In Arkansas, tax rates changed for Farmington, Gassville, Harrison, Jonesboro and Quitman.

In Arizona, tax rates changed for Coconino County.

In Colorado, tax rates changed for Denver, Brush, Idaho Springs, La Veta, Boulder County and City, Larimer County, and Windsor.

In Florida, tax rates changed for Brevard, Charlotte, De Soto, Escambia, Hernando, Highlands, Leon, Monroe, Orange, Seminole and Volusia Counties.

In Georgia, tax rates changed for Brooks, Chattahoochee, Clinch, Muscogee, Seminole, Spalding and Twiggs Counties.

In Idaho, tax rates changed for Ketchum.

In Illinois, tax rates changed for Gurnee, New Baden, Skokie, Trenton, Vernon Hills, Waukegan, and Wilmette.

In Kansas, tax rates changed for Cherokee, Edwardsville, Goddard, Herington, Leon, Luray, Randolph, Smith Center, Utica and Chase County.

In Louisiana, tax rates changed for Doyline and Homer.

In Minnesota, tax rates changed for Todd and Fillmore Counties.

In Missouri, tax rates changed for Ralls and Webster Counties, Hazelwood, Jennings, St. Ann, Sparta and Warson Woods.

In North Dakota, tax rates changed for Beulah, Fredonia, Harvey, Hazelton, Lignite, and Velva.

In Nebraska, tax rates changed for Battle Creek and David City.

In New Mexico, tax rates changed for Colfax, Curry, Grant, Harding, Quay, San Juan, San Miguel, Sierra and Valencia Counties, and Vaughn and Lovington.

In Oklahoma, tax rates changed for Comanche, Leflore, Logan, and Mayes Counties, and Bridgeport, Bethel Acres and Glencoe.

In South Dakota, tax rates changed for Veblen.

In Texas, tax rates changed for China Grove and Maypearl.

In Washington, tax rates changed for Benton County, Ephrata, and Monroe.

In Wyoming, tax rates changed for Washakie County.

There were 13 states with ZIP code changes effective after December 2014 including Arkansas, California, DC, Illinois, Kentucky, Maine, North Carolina, New Jersey, New York, Ohio, Oregon, Tennessee and Texas.

To see rate changes that took effect in December 2014 please visit this article.

Download the full ZIP code change documentation.

For December 2014 changes click here.

Angel Sauer

Sales and use tax changes for October 2014

Sales tax rate changes October 2014

Sales tax rate changes October 2014

Sales and/or use tax changes for 16 states in Zip2Tax products since September 2014. There were changes in Alaska, Alabama, Arizona, Arkansas, California, Idaho, Kansas, Minnesota, North Carolina, Nebraska, Nevada, Oklahoma, Ohio, Texas and Washington.

In Alaska, tax rates changed for Sitka, Skagway and Whittier.

In Alabama, tax rates changed for Enterprise, Childersburg, Greensboro, Marion, Tuskegee, Jackson, Trafford and Union.

In Arizona, tax rates changed for Flagstaff.

In Arkansas, tax rates changed for Crawfordsville, Ekins, Greers Ferry, Cleveland County, Crawford County and Crittenden County.

In California, tax rates changed for Anderson, Cotati, Davis, Hayward, San Pablo, Truckee and Watsonville.

In Idaho, tax rates changed for Nez Perce County.

In Kansas, tax rates changed for Fairway and Mulvane.

In Minnesota, tax rates changed for Douglas County.

In North Carolina, tax rates changed for Davidson County.

In North Dakota, tax rates changed for Burleigh County, Leeds, Morton County, Watford City and West Fargo.

In Nebraska, tax rates changed for Fairfield, Hickman, Atkinson and La Vista.

In Nevada, tax rates changed for Carson City.

In Oklahoma, tax rates changed for the counties of Greer, Latimer, Marshall, Washita and Logan and the cities of Kiowa, Kaw City and Chouteau.

In Ohio, tax rates changed for Erie County.

In Texas, tax rates changed for Tatum, Aubrey, Annetta, Fayetteville, Lakeport, Rogers, Shavano Park, Terrell Hills, Lucas and Tuscola.

In Washington, tax rates changed for Marysville TBA.

There were 12 states with ZIP code changes effective after September 2014 including Alabama, California, DC, Delaware, Massachusetts, North Dakota, New Hampshire, New Mexico, Ohio, Oregon, Tennessee and Texas.

Download the full ZIP code change documentation.

For September’s changes click here.

Angel Sauer

Angel Sauer, sales tax research team leader

Idaho Tax Commission website features help for individuals, businesses

Idaho Tax Commission

If you’re starting a new business in Idaho or owe Idaho taxes, you’ll find new resources to help you on the Idaho State Tax Commission website at tax.idaho.gov.

For individuals or businesses who owe taxes, the Payment Options section features information about avoiding a tax debt, tax bills, forced collection actions, and making payment arrangements. The section includes details about a special payment plan that allows eligible individuals to pay off their debt in six monthly payments without having a lien filed against their property.

For businesses that are new or have changed their operations, the Idaho Business Registration page lists the Idaho permits they may need and explains how to register for them.

Sales and use tax changes for November 2012

Sales and use tax changes for November 2012

Sales and use tax changes for November 2012

Angel Sauer

Angel Sauer, sales tax research team leader

Sales and/or use tax rates in the states of Alabama, Idaho, Louisiana, Minnesota, New York and Texas have changed in Zip2Tax products effective Nov. 1, 2012.

In Alabama, tax rates changed in Hale County.

In Idaho, tax rates changed for the city of Victor.

In Louisiana, tax rates changed for the cities of Arcadia, Gibsland, Castor and Mathews.

In Minnesota, tax rates changed for some Saint Paul ZIP codes.

In New York, the 0.375% MTA rate is moved to the special district category in full breakout versions.

In Texas, rates changed for Providence Village.

There were 7 states with ZIP code changes effective after October 2012 including Alaska, California, Colorado, Delaware, Hawaii, Ohio, Virginia.

Download a complete list of the ZIP code changes.

To see September’s changes click here.