Nobody loves taxes. But every once in a while, there seems to be some new tax levied on some random thing or another that makes everyone angry and confused. Ever wondered what strange things governments have decided to tax over the years? Well, we conducted some research on U.S. tax history and here are 11 unusual taxes Americans have actually had to pay.
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The bagel slicing tax
In the state of New York, a whole, unsliced bagel is considered the same thing as a loaf of bread and is therefore taxed as grocery. If you slice that same bagel or put cream cheese on it, it magically transforms into “prepared food” and is taxed at a higher rate. The extra tax on sliced bagels is so minuscule that most people don’t even notice it.
Maine’s wild blueberry tax
Maine grows more than half of all wild blueberries grown in the U.S., so the state decided to go ahead and tax the berries themselves. Every blueberry farmer in the state has to pay a small per-pound tax, even if the berries are shipped and sold somewhere else. The tax money is used for marketing and research programs designed to keep the wild blueberry industry alive.
Philadelphia beverage tax
In 2016, Philadelphia made news when it added a 1.5-cent-per-ounce tax on sweetened beverages like soda pop. Supporters said it would reduce sugar consumption and fund local programs, while critics complained it was unfair to families and small businesses.
The jock tax
Professional athletes don’t just pay taxes where they live; they owe taxes in every state where they play games. This “jock tax” makes their tax paperwork incredibly complicated, sometimes covering dozens of states. The rule became famous after California went after Chicago Bulls players following the 1991 NBA Finals.
Maryland’s flush tax
Maryland charges households a monthly fee to fund programs that clean up the Chesapeake Bay and improve wastewater treatment plants. It’s often nicknamed the “flush tax” because it literally connects to how many times people flush toilets. The tax has actually raised millions for environmental restoration.
Illinois candy vs. flour tax rule
In Illinois, whether something is considered candy or food comes down to one weird thing: flour. If a candy bar like Twix has flour in it, it gets the lower food tax rate. But if there’s no flour, like in a Snickers, then it’s officially “candy” and gets taxed more, which feels pretty random to most shoppers.
Playing card tax
During the Civil War, the government decided to increase revenue by taxing things no one had ever dreamed of taxing before, like decks of playing cards. A revenue stamp had to be placed on each deck to show it had been taxed, and collectors to this day are on the hunt for old playing cards with the original stamps attached.
The ice cream soda tax
When alcohol was banned during Prohibition, people began to meet at soda fountains instead. So the government taxed ice cream sodas and sundaes in order to get some of the missing alcohol tax revenue.
New Jersey’s pumpkin tax
In New Jersey, pumpkins are only tax-free if you’re going to eat them. If you’re planning to buy a pumpkin to carve into a jack-o’-lantern, then that pumpkin is treated as a decoration and you’ll have to pay tax on it. If you’re going to turn your pumpkin into pie or soup though, it stays tax-free.
Telephone excise tax
When it was first implemented in 1898 as a temporary war tax on telephone service, few could have guessed that the telephone excise tax would still be going strong 108 years later. Americans paid an extra 3 percent on their phone bills for decades. It was repealed in 2006 only after the Treasury Department lost a series of court battles.
Pennsylvania’s “Johnstown flood” liquor tax
In 1936, Pennsylvania lawmakers passed a temporary alcohol tax to help the state recover from a major flood in Johnstown. The levy was intended to fund rebuilding efforts, but the tax has actually been around ever since. Today, state residents are hit with a special 18 percent tax on all booze.
Sources: The following sources were consulted in the preparation of this article.
Weird and Wacky Taxes Around the U.S.
7 Wacky Taxes from the US and Abroad
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