“Top Ten Most Unusual Sales Tax Laws For 2004”
Annual Listing Compiled by Taxware

10. In Ohio, a gift basket of fruit or candy is not subject to sales tax, as the “true object sought is the food items contained within,” not the basket. However, a lead crystal candy dish, which is considered a decorative container, full of candy would be fully taxable.

9. In Connecticut, the sale of a pumpkin in its “natural grown state” is exempt from sales tax because it is considered a food product. However, if the pumpkin is sold after being painted, its “primary purpose” becomes decoration and is subject to sales tax.

8. In Washington, crushed, shaved or cubed ice is not taxable, but blocks of ice are.

7. Up until 2003 in Texas, donuts and other individual sized bakery items sold in quantities of 5 or less were taxable — they are now exempt.

6. Antacids are exempt in Connecticut, but are taxable once one crosses the border into Massachusetts.

5. In Minnesota, cough drops are taxable as “candy.”

4. In California, fresh fruit is exempt, but an apple purchased through a vending machine is taxable on 33 percent of the price.

3. In Minnesota, massage therapy provided by licensed masseuse is subject to the state sales tax unless the massage is for the treatment of an “illness, injury or disease,” in which case it is tax exempt.

2. In Texas, “intravenous systems, supplies and replacement parts” are tax-exempt when used in the treatment of humans, but taxable when used in the treatment of animals.

1. In Wisconsin, cloth diapers are exempt, but disposable baby diapers are taxable.

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