February 11, 2009 3:57 PM

Iowa Taxman Goes After Jack-O'-Lanterns

(CBS/AP)  The Iowa Department of Revenue is taxing jack-o'-lanterns this Halloween. The new department policy was implemented after officials decided that pumpkins are used primarily for Halloween decorations, not food, and should be taxed, said Renee Mulvey, the department's spokeswoman.

"We made the change because we wanted the sales tax law to match what we thought the predominant use was," Mulvey said. "We thought the predominant use was for decorations or jack-o'-lanterns."

Previously, pumpkins had been considered an edible squash and exempted from the tax. The department ruled this year that pumpkins are taxable - with some exceptions - if they are advertised for use as jack-'o-lanterns or decorations.

Iowans planning to eat pumpkins can still get a tax exemption if they fill out a 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, reports the Des Moines Register.

The new policy, published in the department's September newsletter, has some pumpkin farmers feeling tricked this Halloween.

"I don't mind paying taxes, but let's get real here, people," said Bob Kautz, owner of the Buffalo Pumpkin Patch in Buffalo, about eight miles west of Davenport.

Kautz, who has owned his farm for seven years, was particularly dismayed with the notion of requiring customers to fill out a form verifying that they planned to eat the pumpkins they were buying.

"It's another crazy, crazy, stupid thing," he said.

Kautz said he will estimate how many pumpkins were bought for non-food purposes, and then will send the tax on that amount to the revenue department.

"It gets unfeasible for people to have small businesses," he said.

Danny Carroll, who owns Carroll's Pumpkin Farm in Grinnell with his wife, said he will have to pay the sales tax out of profits.

"Essentially, they just reduced our income by 6 percent," he said. "It's too bad, but it's not surprising."

Other Iowa pumpkin sellers also expressed confusion about the new policy. Some, like Carroll, said they were unaware of it. A few said they have been charging the tax this Halloween season and few customers have complained. None said they are asking customers to fill out the tax-exemption certificate.

Mulvey said department officials don't know how much extra revenue to expect from the pumpkin tax.

© 2009 CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.
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by greeneyes222 November 1, 2007 6:06 PM EDT
Another ludicrous state law.

What happens if I carve a pumpkin but roast and eat the seeds and cook the pulp I scooped out?

But it''s comforting to know I could be exempt from tax if I fill out a form. I''d suggest Iowans insist on filling out said form in the checkout lane, to the annoyance of customers and merchants. Just make sure you have a lawmaker''s wife in line behind you.
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by mythoughtsr November 1, 2007 11:24 AM EDT
Other than Ron Paul''s mistress posting 40,000 nonsense posts that are never read, I would like to speak about the actual topic of the story. Until people get out and vote and raise enough of a stink to get these id.iot.s out of office and out of the position of making rules, we will have to put up with this nonsense. These lasy, good for nothings get tons of money and live on easy street while laughing at us in the middle class struggling. Wake up America.
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by scoliosuxs November 1, 2007 10:31 AM EDT
Wait a minute. It''s the pumkin pie that makes you fat not the jack o lanterns. Shouldn''t they tax the pumkins that make the pies. They got it backwards. If this isn''t the stupidest thing I have ever read it has to be close. Plant melons next yr and everyone make their jack o lanterns from melons. Are they going to tax the pine cones children decorate as turkeys for thanksgiving.
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by slim1h2o November 1, 2007 9:35 AM EDT
hahahaaa...bottom feeders...what is the natural prey of bottom feeders? Import them.

Posted by likeitis5050 at 07:49 PM : Oct 31, 2007

They''re called illegal immigrants. And they are,,by the boat loads.
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by cfin5 November 1, 2007 8:45 AM EDT
I''m glad they have articles like this to show the extent of the tax systems, IRS, the whole NEO-GOVERNMENT tyrannical reality........"Necessity is the plea for every infringement of human freedom. It is the argument of tyrants; it is the creed of slaves".-----William Pitt
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by l8c6 November 1, 2007 2:14 AM EDT
and a "RED" state no less.
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by l8c6 November 1, 2007 1:47 AM EDT
Our guidelines for governing taxation and spending is called the Constitution. Ron Paul has ACTUALLY read it! He''''s published three books on economics. Read ''''em free at ronpaullibrary.org

Posted by USAProphet


I notice you left out "borrowing and spending". This is what Ron Paul''s party has done. Instead of paying up front they have borrowed which makes for good interest payments to the big PRIVATE financiers the U.S. is indebted to. This is good for the cozy big elephant family known as the Republican party. Why would Ron Paul oppose the federal reserve? His wealth derived from the system has given him the ability to decline the government check he would otherwise take from the government as a politician.
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by rray52 October 31, 2007 10:49 PM EDT
Why not a tax on fruitcakes, does anyone eat them?
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by likeitis5050 October 31, 2007 10:49 PM EDT
hahahaaa...bottom feeders...what is the natural prey of bottom feeders? Import them.
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by scdrumheller October 31, 2007 10:28 PM EDT
Does that mean if I intend to eat my new plasma TV I can sign a form and not pay sales tax?
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