You Eat Zee Pumpkin? Your Papers, Please!

(Des Moines, Iowa) The Iowa Department of Revenue has ruled that pumpkins will be taxed if they are advertised for use as jack-o'-lanterns or decorations, or if it's understood that the pumpkins will be used for those purposes. Previously, pumpkins were considered an edible squash and exempted from sales tax as food.

Iowans planning to eat pumpkins can still get an exemption from the sales tax, if they fill out the "Iowa Sales Tax Exemption Certificate" form. Pumpkins also are exempt if they are of the specific variety used to make pies and are advertised that way.

Pumpkins purchased with food stamps also are exempt.

Just in case some of my readers are interested in buying pumpkins in Iowa, here's the exemption certificate that must be completed if you are going to eat the pumpkins.

Iowa Sales Tax Exemption Certificate
www.state.ia.us/tax
Iowa Department of Revenue
This document is to be completed by a purchaser whenever claiming exemption from sales/use tax.

Certificates are valid for up to three years. Seller: Keep this certificate in your files.

Purchaser: Keep a copy of this certificate for your records. Do not send this to the Department of Revenue.

Purchaser Name
Address
City
State
Zip Code
General Nature of Business
Seller Name
Address
City
State
Zip Code
Description of Purchase: Attach additional information if necessary. ________________________________________________________________
Under penalty of perjury, I swear or affirm that the information on this form is true and correct.
Signature of Purchaser _________________________________________ Title ___________________________ Date _________________
Purchaser is claiming exemption for the following reason:
Resale
Leasing
Processing
Qualifying Farm Machinery/Equipment
Qualifying Industrial Machinery/Equipment
Qualifying Replacement Parts
Qualifying Computer
Pollution Control Equipment
Recycling Equipment
Research and Development Equipment
Direct Pay (permit no. required): __________________
Other: __________________________________
Purchaser is doing business as a:
Retailer
Sales tax permit no. :____________________________
Wholesaler
Farmer
Lessor
Manufacturer
Nonprofit Hospital
Private Nonprofit Educational Institution
Governmental Agency (including public schools)
Qualifying Residential Care Facility
Non-Profit Museum
Other: ____________
31-014 (5/18/07)

Exemption Certificate Instructions
This exemption certificate is to be completed by the purchaser claiming exemption from tax and given to the seller.

The seller must retain this certificate as proof that exemption has been properly claimed.

The certificate must be complete to be accepted by the seller.

The seller can accept an exemption certificate only on property that is qualified (see the exemptions below) or based on the nature of the buyer.

If property or services purchased for resale or processing are used or disposed of by the purchaser in a nonexempt manner, the purchaser is then responsible for the tax.

Pumpkin growers and sellers are miffed by the recent change in tax policy. When asked what they intend to do with the pumpkins, buyers tell sellers to mind their own business. And no seller wants to require a buyer to fill out a form.

All in all, the money-grubbing government has effectively raised the cost of all pumpkins by six percent. In doing so, small businesses are being dumped on with more regulation.