DES MOINES, IOWA — Pumpkins have won a Halloween reprieve from the tax man.
After a backlash from many pumpkin growers who feared a new tax would cut into their profits, Iowa Gov. Chet Culver on Wednesday ordered the Department of Revenue “to do the common-sense thing” and offer refunds for anyone affected by the “ridiculous” policy.
The department implemented the tax this year after officials decided that pumpkins are used primarily as Halloween decorations, not food. Previously, pumpkins had been considered an edible squash and exempted from the state’s 5 percent sales tax.
“We made the change because we wanted the sales-tax law to match what we thought the predominant use was,” Renee Mulvey, the Revenue Department’s spokeswoman, said. “We thought the predominant use was for decorations or jack-o’-lanterns.”
The new policy had some pumpkin farmers feeling tricked.
“I don’t mind paying taxes, but let’s get real here, people,” said Bob Kautz, owner of the Buffalo Pumpkin Patch in Buffalo, just west of Davenport.
