Friday, November 02, 2007

Get Your Pumpkin Tax Refunds

Pumpkins and tax in the same story, all over the internet - I have to make note of it here. You all have probably read this already, but you know how I feel about pumpkins. Of course they are for eating. What if they don't all get eaten. I'm sure they aren't the only fruit and vegetable that doesn't always get eaten.

Wednesday, October 31, 2007
Governor Culver Statement On Pumpkin Tax
DES MOINES – Below is a statement from Governor Chet Culver on the decision by the Iowa Department of Revenue to impose a tax on pumpkins:
“It has come to my attention that a policy change made in December of 2006 – before I took office – is resulting in this ridiculous pumpkin tax. I have directed the Department of Revenue to do the common sense thing and suspend collection of this tax and offer refunds to consumers or retailers who have been affected.”

Iowa Department of Revenue Press Release:
Iowa Tax on Pumpkins Put on Hold
October 31, 2007
Iowa sales tax law exempts sales of food and food ingredients. Food and food ingredients are defined as substances that are sold for ingestion or chewing by humans and are consumed for their taste or nutritional value. A review of the issue of pumpkin sales occurred in the fall of 2006. The Department determined the pumpkins which had previously been exempt were not being purchased as a food item and should be taxed. It was first announced in December 2006. It was announced again in September 2007.

It has become apparent that not all sellers of pumpkins have become aware of the change in position by the Department. The Department has decided to revert to its prior policy of exemption. The Department will continue to review the issue and seek to make any changes through administrative rule making with opportunity for input by the public and the Legislative Rules Committee. Taxpayers who paid sales tax on pumpkin purchases can apply for a refund with the Department.

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