Posted by Abundant Wealth Planning LLC

Some Strange Taxes Per State You Might Not Know About

Some Strange Taxes Per State You Might Not Know About

While the federal tax code can be complicated, state tax laws can be just as complicated. Read about these weird state tax laws that you might not be aware of and how they generate tax revenue in weird and fun ways.


Background

Do you think the federal tax code is complicated? It has nothing to do with state taxes. Different states have their ways of generating income, both to influence the behavior of their residents and to operate major local industries. We don't know what counts as strange to you, but from blueberries in Maine to candy in Illinois and balloon rides in Kansas. Here are some of the strangest taxes you might not have heard of.


Arkansas: keep your body natural

The state is not the least critical, but the Arkansas tax code encourages you to avoid tattoos or piercings or get them outside the state. Be ready to part with 6% charges for tattoos, piercings, and electrolysis if you can't resist altering your body.


California: fruit fracas

You would think states are encouraging residents to eat healthier and avoid getting a bar of chocolate from the vending machine. But California doesn't encourage you to pick fruit. Indeed, picking up a fruit salad sliced costs 33% more. Instead, think ahead - if you shop at a grocery store, you'll avoid this high tax.


Colorado: lose the lid

If you've ever spilled a beverage on yourself, you probably think coffee cup lids are a must. Unfortunately, you are not a member of the Colorado State Legislature. Non-essential packaging is subject to a 2.9% tax, and while the coffee mug is considered essential, the lid is not. On the other hand, without it, you'll spill your drink each time you come to a sudden stop in the car, then footing the bill to detail your ride will cost you well over 2.9%.


Illinois: Candy tax for some

Is there a Kit Kat lobby? You would be forgiven if you wondered that and if you were an Illinois resident with a sweet tooth. The state imposes a 5% tax on candy in addition to the 1% tax on food, but Illinois considers flour candies to be ordinary food. So if you buy a Kit Kat bar, you don't pay tax on the candy because it contains flour. However, if you bought M&Ms, that is an added 5% tax.


Kansas: lower elevation, higher taxes

If you've always dreamed of crossing the continent in a hot air balloon, you are not alone. But if you want the safety of staying fastened to the ground while doing this, it will be expensive. In Kansas, traveling with a balloon strapped to the ground is subject to the entertainment tax. If it is not fastened, it is considered transport and is exempt from taxes.


Maine: blueberry blue

If you purchase wild blueberries, there's a 99% chance they are from Maine. Given that there is such a large industry, it's no wonder Maine charges them. You'll pay another 1.5 cents per kilogram to get what you need for your blueberry pie or to add some morning yogurt or a bowl of cereal.

 

Nevada and Alabama: card games

Gambling is legal in Nevada, so it's no wonder the state uses the cards as a small incentive to pay taxes. The state gives out a deck of cards for free when you file your tax return. This should make Alabama players jealous, as Alabama charges a 10% tax on packs of 54 cards or less.


New Mexico: It pays off to be 100

New Mexico is considered a welcoming state for the elderly. Celebrating 100 years gives you more than a big party organized by your family; exempt from state taxes. As long as you are in the state for six months, are a resident on December 31st, and are not included as a dependent on someone else's returns, the state considers that you've already paid enough to the state at this point in your life.


New York: the state has a cut of bagels

New York prides itself on serving the choicest bagels in the country – which is good considering you're paying a lot to eat them. Although an uncut bagel is exempt from tax, the state adds a fee of 8 cents to any modified bagel. If you order it with cream cheese or smoked salmon or even just sliced for you, that is considered having it for consumption on the spot, which inspires the extra tax.


Texas: cowboy up

Want to have the cowboy feel but don't want to ride a horse? Buy only the right clothes, and you may be able to pass as someone at home on the range. But if you think people judge a man's credentials by the size of his belt buckle, be careful buying gear in Texas. Belt buckles are taxable in Texas. But a regular belt and matching cowboy boots? These items are tax-exempt.


West Virginia: Taxed on the 4th of July

There is no lack of patriotism in West Virginia. Do you want to celebrate the 4th of July with some holiday novelties or similar sparkles? Do not hesitate, but if you want to sell them, you will have to pay taxes to the state to get the certificate needed to sell these novelties and sparkles.


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