Are bureaucrats always this silly?

Question

This story has been posted on a number of sites and mentioned on the electronic media;

http://news.lp.findlaw.com/ap/o/632/10-31-2007/a1ef000943296590.html

Taxing pumpkins? Give Me a Break:

IOWA has about 3,000,000 people and is about 146,000km². So if every person purchased a pumpkin for $1.00 at IA sales tax rate that is a whopping $150,000 less cost to collect. Even if ever citizen purchased 5 pumpkins for the same dollar /pumpkin price this is still less that 1,000,000.

This may cover the salary of the non-thinking bureaucrat who decided to tax this crop ---

$150,000 is a tad more that a dollar a km². Could not the state of IOWA save that much buy turning off the lights for the evening?

I read the story an I knew that food was not taxed. But look at the economics, no one is going to complete the paperwork to get the 5% back on a pumpkin -- If too many people however did that the state would expend more money to police these reports of food useage --- Would people lie to say 5%?

Exactly how many pumpkins need to be sold to recoup the cost of tax administration for that item?

Food Consumption? Now that this is Nov it may be moot --- however taxes seldom disappear. You could get a pumpkin and paint the face on the gourd for Halloween then use it for pies on Thanksgiving --- used as both decoration and food [Tax or no tax?] If you cut open the pumpkin to carve the face --- but you salt and bake the seeds of the pumpkin is this not dual use? [Tax or no Tax?] This there is little difference in rolled oat whether you use for equine feed or human feed --- So you could buy your oat for human use at the feed store and avoid a tax?

How much tax revenue will Iowa receive by this change? Should not citizen see this as a move to tax food stuffs? Are lemons taxed when used as air freshners? Is baking soda taxed when used in a refrigerator and not as a baking aid? Silly distinctions?

Food Consumption? Now that this is Nov it may be moot --- however taxes seldom disappear. You could get a pumpkin and paint the face on the gourd for Halloween then use it for pies on Thanksgiving --- used as both decoration and food [Tax or no tax?] If you cut open the pumpkin to carve the face --- but you salt and bake the seeds of the pumpkin is this not dual use? [Tax or no Tax?] This there is little difference in rolled oat whether you use for equine feed or human feed --- So you could buy your oat for human use at the feed store and avoid a tax?

How much tax revenue will Iowa receive by this change? Should not citizen see this as a move to tax food stuffs? Are lemons taxed when used as air freshners? Is baking soda taxed when used in a refrigerator and not as a baking aid? Silly distinctions?

Answer 1

They went overboard on this one.

Answer 2

"Food for human consumption" is usually the language to exempt the purchase of food from sales tax. Since it is not being consumed by humans, it is taxable.

It is always the purchaser's responsibility to claim an exemption from tax when it is not specifically given to them which is the case.

If you bought a 50 pound (22.7 kg) bag of oats from a horse feed store, you would be expected to pay tax on it. If you didn't want to pay the tax, then you would have to claim the tax exemption. Its the same principal.

BTW, Taxing Pumpkins makes a great name for a band.

Answer 3

You need to re-read the story.

Food is not taxed in IA. The state has decided that most of the pumpkins being sold are not being sold for food but are being sold as decorations. That makes them taxable.

If anyone wishes to sign a declaration that they are planning to use it as food (such as for pumpkin pies or to roast the seeds) they will not be charged any sales tax.

The press has made a big deal out of it. IMHO, it's hardly newsworthy.

Answer 4

Silly? No. Idiotic? Yes!