Healthy soil and sustainable growing

["TradingPostPaul" <tradingpost@riseup.net>]

time for a break .... !

Tax law: Are you eating those pumpkins?
Oct 30, 10:18 PM EDT
http://hosted.ap.org/dynamic/stories/P/PUMPKIN_TAX?SITE=TXSAE&SECTION=STRANG

E&TEMPLATE=DEFAULT

DES MOINES, Iowa (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.

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.

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Information from: The Des Moines Register, http://www.desmoinesregister.com