Business

Five of the Weirdest Sales Taxes in the U.S.

Because the U.S. economy is still dragging its feet and consumer spending is down, some states are rediscovering “crafty” ways to generate revenue via obscure sales taxes. And this is nothing new. People have been dealing with dubious but “all-too enforceable government laws,” as Brian O’Connell of Financial Edge put it, for a long, long time.

“In ancient Egypt, the pharaohs taxed cooking oil – of course, the main seller of cooking oil was the pharaoh. During the first century AD, the Roman empire taxed urine – a popular source of ammonia for common tasks like tanning hides and cleaning clothes,” writes O’Connell. “Then at the height of the Dark Ages (an era in European history notorious for its poor hygiene), some European governments taxed the sale of soap!”

Yet, despite being supposedly more “enlightened” than the Dark Ages, 21st century governments still have the ability to levy (and enforce) highly questionable and oftentimes unreasonable taxes on the masses.

What are some of the dubious sales taxes? Here are the top five weirdest examples in the U.S. (all information in block quotes via Financial Edge):

Food Packaging Tax

Five of the Weirdest Sales Taxes in the U.S.

States like Colorado have a weird definition of what constitutes food packaging. In using the term “essential” in its tax language for such commodities, Colorado finds itself in the strange position of taxing paper cup lids and napkins, but not paper cups or fast-food French fry containers.

Hot Air Balloon Tax

Five of the Weirdest Sales Taxes in the U.S.

If you’re in Kansas and in the mood to take a ride in a hot air balloon, beware of the state government’s “amusement” tax.

State regulation makes balloon rides taxable. But there is a caveat – only balloon rides that are tied, or tethered to the ground, are considered taxable. So, if you want to avoid paying taxes when taking a balloon ride over Topeka, make sure to leave the rope at home!

New York’s Crazy Bagel Tax

Five of the Weirdest Sales Taxes in the U.S.

New York State has an interesting way of handling bagels – and taxes on buying bagels. If you want to eat a bagel tax-free, don’t have the deli counter “prepare” it for you (i.e., add cream cheese or cut the bagel in two pieces). Prepare that bagel yourself, and you don’t have to pay a tax on it.

But there’s more to it than that.

Apparently, if the deli worker “doesn’t slice the plain bagel, but you opt to eat it in the deli, the food preparation tax also applies, even though no preparation was required of the food,” writes conservative author Mark Steyn.

“Got that? If you own a deli, you better have, because New York is so broke they need their nine cents per sliced bagel and their bagel inspectors are cracking down,” Steyn adds.

Wet Fuse

Five of the Weirdest Sales Taxes in the U.S.

In West Virginia, celebrating the Fourth of July – or any celebration where fireworks are used, can lighten your wallet. The state has a special tax – on top of its 6 percent sales tax – on things like ladyfingers and sparklers.

Fruit Tax

Five of the Weirdest Sales Taxes in the U.S.

California has gone bananas over the purchase of fruit by consumers. If you buy an apple from a regular retailer, you’re in good shape, as the purchase is tax-exempt. If you buy fruit from a vending machine – and who hasn’t done that – you’ll pay an additional 33 percent on the amount of the purchase.

The “above taxes certainly aren’t the only taxes on statewide level, but they are surely among the most unique,” writes O’Connell.

(h/t Business Insider)

Comments (149)

  • Mr Galt
    Posted on January 16, 2012 at 10:50pm

    I’ve got the solution to all our financial problems:

    A stupid tax.

    Report Post »  
    • longun45
      Posted on January 16, 2012 at 11:28pm

      OH,
      you mean democrats.

      Report Post »  
    • JJ Coolay
      Posted on January 17, 2012 at 1:06am

      Isn’t this why the colonialists left England 300 years ago?
      King George’s taxes.

      Report Post » JJ Coolay  
    • sane_man
      Posted on January 17, 2012 at 1:43am

      Uh yeah… because Republicans have never instituted, supported, or raised taxes. C’mon.

      Report Post »  
    • notreally
      Posted on January 17, 2012 at 5:45am

      As in “tax something and you’ll get less of it”? Won’t work with socialists — I mean demcrats. They’re born stupid:

      -10/28/10 NBC news: University of California at Davis and Harvard University find “Liberal Gene” as partial answer as to why liberals think the way.

      Report Post »  
    • TomFerrari
      Posted on January 17, 2012 at 8:23am

      @sane…
      “never?”
      Well, fortunately, we do not have time travel machines, and we only have to vote for the CURRENT platform. Besides, finger pointing is childish at best.
      What would you say to your son who was breaking street lights when his excuse was, “Jimmy did it too?”

      Report Post » TomFerrari  
    • PlowMan
      Posted on January 17, 2012 at 8:26am

      Yeah your right, but who decides whom is stupid? You know Newsweek thinks Obama detractors are stupid.

      Report Post » PlowMan  
    • homeyd77
      Posted on January 17, 2012 at 9:39am

      @SANE_MAN – Republicans, the party of “no”, votes against tax increases a lot more than you may think. The National Taxpayers Union rates each member of congress by their “taxpayer friendly” voting records, good or bad… http://www.ntu.org/on-capitol-hill/ntu-rates-congress/

      Report Post »  
    • JRook
      Posted on January 17, 2012 at 10:47am

      @longun45 No I believe it would be the Palin/Bachmann tax.

      Report Post »  
    • JRook
      Posted on January 17, 2012 at 10:54am

      Why is it that Republicans claim to reduce taxes, yet increase fees and fines on everything to produce government revenue. The issue should not be how the government obtains its money, but how much they suck out of the economy. Reagan was the individual who taught Republicans how to appear to decrease taxes by reducing income tax rates, while at the same time eliminating deductions and increasing fees. The net result is a disproportionate burden on the low and middle class. For all the individuals here who quote the nonsense the 48% of people do not pay any taxes…you are either are ignorant by nature or you work hard at it. Gas taxes, utility taxes, cigarette taxes, tariffs, car license fees, car registration fees, etc. etc. When you add them all up you have the low and middle class left with disproportionately less disposable income. Which is the number one reason the economy is struggling as they are the main source of demand. And it is demand that creates jobs, not the wealthy.

      Report Post »  
    • pavnvet
      Posted on January 17, 2012 at 11:08am

      Some of the replies to the OP’s comments highlight just how much money would be collected by a stupid tax.

      Report Post » pavnvet  
    • ICanComment
      Posted on January 17, 2012 at 11:53am

      @JROOK (but not especially JROOK in particular)

      “D,“ ”R,” it’s just about all the same these days. Stupid is as stupid does. :-)

      I’d argue that the majority of politicians from both sides would probably fall prey to the stupid tax, if actions are the means by which “stupid” is quantified. If any of us blindly pulls the “D” or “R” lever anymore, we might just get hit with the “stupid” tax ourselves!

      (Now, the relative ratio of D to R stupid tax eligibility, or RRDRSTE may be what was meant by some posts.)

      Report Post »  
    • Jaredglade
      Posted on January 18, 2012 at 12:04am

      They already have that. It’s called the state lottery.

      Report Post »  
    • robertsgal
      Posted on January 18, 2012 at 10:47am

      How many of you have read Throw Them All Out? The book only critiques this administration, but ALL politicians are GUILTY of GREED. Find ONE that TRULY BELIEVES in the FREEDOMS that our founding fathers fought so hard to LEGALLY pass on to each and every one of us and I’m sure that person would be our next president and all the lying and passing the buck would stop. Unfortunately there isn’t one out there that meets this criteria. AND it’s worse on the local level. Nickel and dime us to death anyway they can!

      Report Post »  
    • Protoham
      Posted on January 20, 2012 at 1:07pm

      In Maryland we just got a new tax on Beer and Alcohol. 3% alcohol tax on top of a 6% sales tax. So you want a beer it will cost you an extra 9%.

      Report Post »  
  • oldguy49
    Posted on January 16, 2012 at 10:45pm

    flat tax………………………PLEASE

    Report Post »  
  • independentvoteril
    Posted on January 16, 2012 at 10:20pm

    Here in IL we have a amusement tax on everything from going to the movies to a concert.. ANY way in which you could as a taxpayer TRY to enjoy yourself they will and do tax you.. the government doesn’t even allow taxpayers to enjoy what is LEFT of our money without TAXING our leisure time activities.It’s like we are not allowed to spend our money on ourselves.. if we do the GOVERNMENT here taxes us..

    Report Post » independentvoteril  
    • Gonzo
      Posted on January 17, 2012 at 7:57am

      If you drive a car, I’ll tax the street,
      If you try to sit, I’ll tax your seat.
      If you get too cold I’ll tax the heat,
      If you take a walk, I’ll tax your feet.

      Report Post » Gonzo  
    • ICanComment
      Posted on January 17, 2012 at 12:05pm

      Wipe that smile off your face. No amusement allowed.

      Report Post »  
    • Allen Booth
      Posted on January 17, 2012 at 5:25pm

      What about sexual activity? Either with yourself or someone else?

      Report Post »  
  • BenFrank1791
    Posted on January 16, 2012 at 10:13pm

    hmmmm… with a 33-percent special tax on fruit you’d think California would be financially solvent.

    Report Post » BenFrank1791  
    • Ruler4You
      Posted on January 16, 2012 at 10:33pm

      Government has only one intention: Take your money and make it theirs. Period. Insane taxes are part and parcel of that intention.

      Report Post » Ruler4You  
    • sane_man
      Posted on January 17, 2012 at 1:42am

      Perhaps read what it actually said. It said fruit from a “vending machine” and even pointed out how rare that kind of purchase would be. Most fruit purchases would not all into this category

      Report Post »  
    • Worldsapart
      Posted on January 17, 2012 at 2:55am

      Ben, I got it, and the joke was FABULOUS!

      Report Post »  
    • sane_man
      Posted on January 17, 2012 at 3:25am

      Oh man…I’m sorry. I didn’t the joke but I do now. My apologies for my reply. In my defense, perhaps I’m just too used to reading really stupid comments form really stupid people. Looks like I was the stupid one here.

      Report Post »  
    • Mahakala
      Posted on January 17, 2012 at 3:27am

      If San Francisco would institute a fruit tax it would have a budget surplus.

      Report Post » Mahakala  
    • blondenblueeyed
      Posted on January 17, 2012 at 3:25pm

      @Mahakala GOOD ONE! Too Funny!

      Report Post » blondenblueeyed  
    • Phreqguru
      Posted on January 17, 2012 at 3:54pm

      Pretty soon they will inventory everyone’s backyards and if you have fruit trees they will tax the amount of fruit you harvest….consumption tax, canning tax, storing tax……….

      Report Post » Phreqguru  
  • Restore the Republic
    Posted on January 16, 2012 at 9:43pm

    The Marxists have gone insane taxing everything in sight to pay people for their votes. Its time to stop this insanity and throw them all out of our government.

    Report Post » Restore the Republic  
    • sane_man
      Posted on January 17, 2012 at 1:45am

      I got news for you…the “they”…they’re “us”.

      Report Post »  
  • charles4227
    Posted on January 16, 2012 at 8:45pm

    AH less face it , the government will do any thing it can to get into our pockets! After all they know how to spend our money better than we do! and on much better stuff, than we would spend it on. At least that’s what they say!! RIGHT!!!

    Report Post »  
    • MarkstoneUSA
      Posted on January 16, 2012 at 9:41pm

      Face it people, I swear the whole world exists to try to part the WORKING American from there hard earned money. Our own government takes it from us and either gives it to people that hate us by envy or downright want to kill us. And if there not giving it away, there in cahoots with scam artists with idiotic ideas to “save the earth”. Eventually some trickster will even figure out how to tax the act of making love…

      Go anyone but Mcain, I mean, Romney

      Report Post » MarkstoneUSA  
  • Mtremblay
    Posted on January 16, 2012 at 8:36pm

    Now I have bought fruit in a vending machine but an extra tax. I am not sure if I paid it. It is certainly not declared anywhere but here is the problem. Doesn’t Michelle Nobama want us to be eat better and weigh less-so they tax it more than they do doritis? Just like the push for green cars. They push you to go green but Nobama wants to track our mileage and charge us per mile instead of the sale in gas

    Report Post »  
  • WeDontNeedNoSteenkinBadges07
    Posted on January 16, 2012 at 8:34pm

    I knew I saw all this tax business before … oh yeah:

    “Popeye Taxman”
    http://www.youtube.com/watch?v=g0ahJPxfGp4

    Report Post » WeDontNeedNoSteenkinBadges07  
  • Miami
    Posted on January 16, 2012 at 8:16pm

    Fruit in vending machine…?

    Am I the only one who finds that strange…?

    I know in Japan you can buy anything out of a vending machine but I’ve never seen that here nor would I buy any fruit this way.

    Report Post » Miami  
  • phillipwgirard
    Posted on January 16, 2012 at 8:03pm

    No decent news from the BLAZE lately. The BLAZE is turning into a gossip RAG, like the Enquirer

    Report Post » phillipwgirard  
    • Miami
      Posted on January 16, 2012 at 8:18pm

      You can alay go else where, noi one is making you comment or stay

      Report Post » Miami  
    • READRIGHTHERE
      Posted on January 16, 2012 at 10:34pm

      he likes to hear himself type

      Report Post »  
    • JJ Coolay
      Posted on January 17, 2012 at 1:09am

      Phillip, click on your bookmarks tab, then right-click on “The Blaze” and click delete. That way you don’t have to visit the site anymore.

      Report Post » JJ Coolay  
  • iowabassboy
    Posted on January 16, 2012 at 8:03pm

    Iowa is about to pass a tax that allows the power companies to start taxing us for nuclear power plants that may or may not be built in the future!

    Report Post »  
  • booger71
    Posted on January 16, 2012 at 8:02pm

    If we taxed liberals gray matter we would have 0 in revenue.

    Report Post » booger71  
    • Miami
      Posted on January 16, 2012 at 8:24pm

      Liberals don’t pay taxes, they just raise them, Buffet wants for others to pay more and he still hasn’t paid his

      Report Post » Miami  
  • inferno
    Posted on January 16, 2012 at 7:58pm

    No matter how you slice it or dice it, taxing anything is a tax on your income. And we think the IRS is the only entity that taxes ones income ! Aren’t we glad we have a public education monoply ? Only an education monoply can allow ignorant teachers to teach ignorant students. As a result what do we get ? More ignorant teachers to teach the next crop of ignorant students. Bad seed produces bad crops. And it goes on and on and………….

    Report Post »  
  • sizzler2220
    Posted on January 16, 2012 at 7:57pm

    We used to buy fruit from a vending machine in our high school.

    Report Post »  
  • NC
    Posted on January 16, 2012 at 7:43pm

    [quote] If you buy fruit from a vending machine – and who hasn’t done that – you’ll pay an additional 33 percent on the amount of the purchase [unquote]

    I raise my hand. In my 55+ years, I have never bought a fruit from a vending machine. I’ve met fruits using vending machines, I used vending machines that acted as though they were fruity, I’ve even met a fruity vending machine technician.

    Living in the mountains, I’ve often wondered what I was missing from the mass of humanity that resides in the city. This life’s question has been answered.

    City folks but their fruit from a machine instead of picking it off the tree.

    NC

    edited to correct spellnig)

    Report Post » NC  
    • RightThinking1
      Posted on January 16, 2012 at 8:27pm

      Sounds like you live in western NC. You can’t be very far from me…, as much as I hate to say it, Asheville.

      Report Post »  
    • SAM1234
      Posted on January 16, 2012 at 8:30pm

      Looks like you’re too old to recognize sarcasm

      Report Post »  
  • Proud Southerner
    Posted on January 16, 2012 at 7:35pm

    We paid a Federal tax for the Spanish-American war until 2006, 3% on all long distance calls. Most long distance calls lasted longer that the war. The government said they would refund $15 billion dollars. I assume AT&T got it.

    Report Post » Proud Southerner  
  • Wolfram
    Posted on January 16, 2012 at 7:34pm

    Ohio taxes the carbonation in soft drinks.. 5 cents per bottle or fountain drink

    Report Post »  
    • kkentucky
      Posted on January 16, 2012 at 8:11pm

      Hmmm if the soda is flat do ya get your taxes back?????

      Report Post »  
    • Stoic one
      Posted on January 16, 2012 at 9:43pm

      Wow! really? glad I stopped drinking that stuff….and I do not heat my house with heating oil any more; and one of the factors involved in changing the heating system was TAX.

      Report Post » Stoic one  
    • JJ Coolay
      Posted on January 17, 2012 at 1:10am

      No Kentucky, in that case they hit you with additional fees, called a “Flat Tax” Hahah!

      Report Post » JJ Coolay  
  • bama54m
    Posted on January 16, 2012 at 7:34pm

    how about the tax on chicks across the BC Washingtom border,,the tax them as being improved if they go across the border to be “sexed” and then returned,,they are worth more,if you kno what sex they are.A friend of mine in the Cab business used a new motor as a write off on income tax,,the government argued that he “improved the value” of a taxi with over 300,000 miles on it,,Go Figure !

    Report Post »  
  • Cat
    Posted on January 16, 2012 at 7:27pm

    And look were taxes got all those societies …

    Report Post » Cat  
  • krjones
    Posted on January 16, 2012 at 6:55pm

    http://capoliticalnews.com/2011/09/21/video-the-government-can-tim-hawkins/

    Report Post »  
    • Cheekymnky2
      Posted on January 16, 2012 at 7:06pm

      PA still has a 1% sales tax to pay for the Johnstown flood … of 1889! Then we have the 5 cent bag tax in Montgomery county MD. I was wondering if you don’t pay the bag tax, is it tax evasion or shoplifting?

      Report Post »  
    • krjones
      Posted on January 16, 2012 at 7:18pm

      See link above. It’s whatever the government man says it is..

      Report Post »  
    • Kaoscontrol
      Posted on January 16, 2012 at 7:31pm

      This video is so true…Tim Hawkins is hilarious.

      Report Post » Kaoscontrol  
  • schroeder123
    Posted on January 16, 2012 at 6:54pm

    Line me up all those people who thought of these taxes. I’ll take care of them.

    Report Post » schroeder123  
  • saintjock
    Posted on January 16, 2012 at 6:54pm

    Fruit cake really? THat cant generate very much.

    Report Post » saintjock  
  • rukdnme13
    Posted on January 16, 2012 at 6:44pm

    If you take a walk we’ll tax your feet! The Beatles

    Report Post »  
  • progressiveslayer
    Posted on January 16, 2012 at 6:40pm

    Creating new taxes and regulations are bad for business and liberty and that’s all the worthless pigs in congress do,create new taxes and regulations.

    Report Post » progressiveslayer  
    • chips1
      Posted on January 16, 2012 at 6:52pm

      Tax B.S. and see how politicians like it.

      Report Post »  
    • seeker9
      Posted on January 16, 2012 at 6:54pm

      Just heard on Fox that this congress has been one of the most unproductive ones. I say GREAT! Can’t think of many laws that do not cost anything, so the less productive the better. Will there ever come a day when we elect politicians to cut costs, not to make more laws?

      Report Post » seeker9  
    • eagle2715
      Posted on January 16, 2012 at 7:03pm

      Right on Seeker….One thing Perry has right…the less they work, the less damage they can do…And maybe the less we have to pay them?…..This 6 figure salary thing for these bums should be corrected….

      Report Post » eagle2715  
    • Buck Shane
      Posted on January 16, 2012 at 7:41pm

      @ seeker9
      Agreed.
      Why is congress a full time job? They make laws, right. Don’t we already have 230 years of laws – why do we need more?

      Report Post » Buck Shane  
    • progressiveslayer
      Posted on January 16, 2012 at 8:20pm

      @BUCK SHANE We need more new laws so congress can demonstrate their power and control over us.We need a part time legislature and for every new law created congress should do away with five.

      Report Post » progressiveslayer  
    • Buck Shane
      Posted on January 16, 2012 at 8:22pm

      @ progressiveslayer
      Well, I suppose they do need to keep us from hurting ourselves.

      Report Post » Buck Shane  
    • 2theADDLED
      Posted on January 16, 2012 at 8:25pm

      Congressmen are just out of work lousy Lawyers who can’t make it in the private sector.

      Report Post »  
    • JJ Coolay
      Posted on January 17, 2012 at 1:17am

      I understand the need for new laws, now and then, as things change. For example, 20 years ago we didn’t have to worry about cell phones and people texting while driving. But there is a line between legitimate laws and completely absurd laws and laws the gov’t makes up just to intrude in our lives.
      Gov’t should be a part time job and that is more than enough to get whatever new laws are “needed” done.
      We don‘t need gov’t in half the places they are.
      I mean, running an investigation on steriods in baseball, for example, is insane.

      Report Post » JJ Coolay  
  • BetterDays
    Posted on January 16, 2012 at 6:39pm

    Preventing a socialist utopia is taxing eneough, The Obamanation must go, but must not be replaced with his Massachusetts “good (R) twin.
    And NO I won’t vote against what is morally correct, just to replace one with the same thing, that’s insanity, at best.

    Report Post »  
    • David
      Posted on January 16, 2012 at 7:22pm

      You’re right. The enemy of America isn’t Barack Obama. The enemy is big government.

      Report Post » David  
    • US Agent
      Posted on January 16, 2012 at 8:54pm

      No one person or people are the enemy. It’s a battle of ideas. Liberty v Tyranny

      Report Post » US Agent  
    • READRIGHTHERE
      Posted on January 16, 2012 at 10:36pm

      Obama and Romney could not be farther apart. In fact Paul is closer on policy to Obama’s campaign promises than any other on the stage.

      Report Post »  
    • 13th Imam
      Posted on January 16, 2012 at 11:38pm

      Congrats on Reelect Barry 2012

      America RIP

      Feel better now

      Report Post » 13th Imam  
    • Utahcatholic
      Posted on January 17, 2012 at 3:34pm

      @USagent………….Mark Levin would be proud of you.

      Report Post »  

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