The taxman in Iowa is going after jack-o’-lanterns this Halloween.
Most pumpkins are used as decorations, making them taxable, Iowa has ruled.
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.