Top 10 Weird State Tax Laws – Holiday Edition

Top 10 Weird State Tax Laws - Holiday EditionSales tax laws have to cover all sorts of transactions, from drop shipping diapers to downloading Duck Dynasty.  All that variation means these tax laws can get downright bizarre.  Yet, as weird as the laws get, businesses still have to comply, because state tax auditors are keeping a list (and checking it twice). Here are my top ten weird state tax laws (with a holiday theme):

  1. Wisconsin: hanging holiday lights is a taxable service.
  2. Texas: Christmas tree-decorating services are taxable, unless you provide the ornaments.
  3. Indiana: Kit Kat and Twix bars are tax-free but Nestle Crunch bars are taxable.
  4. Colorado: candy is taxable, unless it’s from a vending machine.
  5. Lousiana: the storage of fur clothing is taxable, if it is considered “cold storage.”
  6. In New York, your chartered flight is only exempt from tax if there is a pilot.
  7. Florida: fresh apple cider is tax exempt, but apple-flavored malt liquor is taxable.
  8. Some Connecticut stores were caught charging tax on exempt holiday gift cards.
  9. Buy Rihanna MP3s in Indiana and skip tax; buy them in New Jersey and pay.
  10. Snow removal is taxable in Ohio but not Wisconsin, where it is considered necessity.

The State and Local Tax (SALT) Group at KatzAbosch is available to help with the complications of state tax law compliance.

Please contact the KatzAbosch SALT Group if you have any questions regarding any SALT issues at 410-828-CPAS or email abareham@katzabosch.com

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