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PUMPKIN AMNESTY

November 01, 2007

Bowing to nationwide ridicule, the Iowa Department of Revenue reversed itself on the contentious pumkin tax yesterday. The Department had ruled that pumpkins purchased for carving would be subject to sales tax, but those purchasing pumpkins for food could get a sales tax exemption by filling out an exemption form.

Now we can turn our attention to another gross sales tax injustice: the disparate treatment of Milky Way bars.

The Iowa sales tax law says the following about candy:

"Candy" means a preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruits, nuts, or other ingredients or flavorings in the form of bars, drops, or pieces. Candy shall not include any preparation containing flour and shall require no refrigeration.

The ingredients in the classic Milky Way bar:

MILKY WAY® Bar ingredients: milk chocolate (sugar, cocoa butter, skim milk, chocolate, lactose, milkfat, soy lecithin, artificial flavor), corn syrup, sugar, partially hydrogenated soybean oil, skim milk, less than 2% milkfat, cocoa powder processed with alkali, lactose, malted barley, wheat flour, salt, egg whites, artificial flavor

Tax-exempt.

The ingredients in the Milky Way Midnight Bar:

MILKY WAY® MIDNIGHT® Bar ingredients: semisweet chocolate (sugar, chocolate processed with alkali, cocoa butter, chocolate, milkfat, soy lecithin, vanilla extract, artificial and natural flavors), corn syrup, sugar, skim milk, partially hydrogenated soybean oil, less than 2% butter, milkfat, lactose, salt, egg whites, vanilla extract, artificial flavor.

Taxable.

So: Milky Way Midight: subject to Iowa sales tax. Milky Way classic: exempt in Iowa.

No justice, no peace!

Tags: candy.iowa tax policy.pumpkin tax.sales tax.

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