Front Line Systems

Sage 300 Support, Sage 300, HighJump Warehouse Edge Consultants

  • Home
  • ERP
    • Sage 300 ERP
    • Sage 300 (Accpac) Cloud ERP
    • Sage 300 Demo
    • Sage 300 Support
    • How Much Does Sage 300 Cost?
    • ERP Resources
      • Change Your Sage 300 Partner
      • Increase Your ROI on Sage 300
      • Get Your Sage 300 Year-End Guide
      • Ultimate Sage 300 Guide For Sage 300 Users
  • WMS
    • HighJump Warehouse Edge
    • Warehouse Efficiency Resources
      • 10 Ways a Warehouse Management System Will Increase Efficiency
      • How Does Warehouse Automation Improve Inventory Management?
      • How to Improve Warehouse Performance?
      • How to Increase Picking Speed In Your Warehouse?
      • Tribal Knowledge and Your Warehouse Efficiency
    • HighJump Data Sheets
  • Add-Ons
    • AP Automation
    • Business Intelligence Software
      • Anvizent Analytics
      • Sage Enterprise Intelligence
      • Solver BI 360
    • Credit Card Processing
    • Manufacturing Software
      • AutoSimply Manufacturing Software
      • MiSys Manufacturing Software
    • Other Add-Ons
      • Sage CRM Software
        • Sage CRM Demo
        • CRM Software Consulting
        • CRM Software: Discover How To Use Outbound Call Lists in Sage CRM
      • Document Management Software
      • EDI Software for Sage 300 ERP (Accpac)
      • Hotel Management Accounting Software
        • Hotel Accounting Software
      • Sage HRMS
      • PrintBoss Software
        • Video: PrintBoss Software for Sage 300
      • Projects for Sage 300
      • Avalara Sales Tax
      • Service and Maintenance for Sage 300 ERP
      • Web Stores for Sage 300 ERP
  • Contact Us
    • Contact Us
    • Sage 300 ERP Consultants (formerly Sage Accpac) | HighJump WMS Consultants
    • Meet the Front Line Systems Team
    • HighJump Warehouse Edge Client Testimonials
    • What Our Sage 300 Customers Are Saying
  • Visit Our Blog

October 15, 2015 by Front Line Systems Leave a Comment

Pumpkins, piercings and the paranormal: 10 scary ways states apply sales tax

Bwaahahaha! Is that the ghostly laugh of a Halloween haunt — or the auditor reviewing your sales tax returns? Dealing with sales tax can be a ghoulish task. And for businesses with compliance obligations in multiple states, it can be frighteningly difficult to know which rules apply.

Avalara_logoTake pumpkins, for example. Nothing says fall quite like overflowing cornucopias, evil-grinned jack-o’-lanterns and (yep) pie. But be warned: not all pumpkins are created equal. In New Jersey and Pennsylvania, taxability depends on if your pumpkin is tricked-out or treat-worthy. Pumpkins to be used for decoration (painted, varnished or carved) are taxed while pumpkins used for food (like pie) are tax-exempt. In Iowa, all pumpkins used to be taxed, but farmers complained, so now the state only applies sales tax to inedible gourds.

While we’re on the topic, here are nine more thorny tax rules that can make compliance a nightmare:

  1. Mask your disappointment. Fall sales tax holidays aren’t just for back to school clothes. In states like Georgia, you can snap up Halloween costumes for the whole family tax free. But in Texas, the exemption applies only to kids’ costumes. And in some states, masks are not considered apparel, and are therefore taxable.
  2. Somewhat foggy. Love that cool dry ice trick in the party punch bowl? Well, it might cost you. Eleven states tax ice products differently. In Arizona, for example, ice cubes are exempt from sales tax but ice blocks are not.
  3. Ooh, that stings. We’ve got an inkling this will needle a few artistic types: Arkansas charges a 6% tax on tattoos and body piercings.
  4. How corny is this? A theater owner in California claimed popcorn was “cornditioned” (dehumidified, not heated) and therefore not subject to sales tax as a “hot prepared food.”
  5. Beware the witching hour. Delaware doesn’t have a sales tax. However, it has some pretty kooky rules for Halloween. Children may only trick-or-treat from 6 to 8 p.m. and, if Halloween falls on a Sunday, they must trick-or-treat on October 30 during this same time interval.
  6. Not so sweet deal. Handing out treats for Halloween? Turns out half of North Carolina retailers were overcharging sales tax on certain candy items like Kit Kat and Twix. North Carolina has a lower sales tax rate for items classified as “food” because flour is an ingredient — including candy. Other states with similar sticky sales tax rules: Washington, Illinois, Colorado and Connecticut.
  7. Dressing up this year? You can’t take a tax deduction on a business suit in Maryland, even if it’s required office attire. But if you’re employed as a clown, you can write off the clothes …all the way down to the big shoes and red nose. What’s the difference? Usability. If you can wear it somewhere else, it’s not deductible. So what happens if the clown dresses up like a lawyer for Halloween (or vice versa)?
  8. Death becomes her. Get your makeup done in a beauty salon in Ohio and you’ll pay sale tax. But you can go to your grave knowing the mortuary touched you up tax free.
  9. Supernatural powers of persuasion. Philadelphia filmmaker M. Night Shyamalan convinced Pennsylvania lawmakers to renew a 25% tax credit to film companies that spend 60% or more of their production budget in the state. Without the credit, he claimed, the industry would walk. The state acquiesced, even giving credit for $29 million in visual effects work performed out of state.

State sales tax regulations can be tricky and it’s no treat trying to figure them out on your own. It’s easy to get caught up in the complex web of sales tax rules and rates. You know what else is scary? What can happen when you collect sales tax but don’t remit it, as Will shows us in his latest whiteboard video.

Ward off these evils by talking to your accountant or systems provider about ways to make both calculation and filing sales tax process easier by automating compliance in your ERP, ecommerce or billing system with Avalara AvaTax.

WATCH NOW

Filed Under: sales tax automation, sales tax software

Leave a Reply

Your email address will not be published. Required fields are marked *

Quick Contact

Fill out my online form.

Sign Up For Our Sage 300 Tips & Tricks Newsletter

Register Below

* indicates required

Industry Solutions

Manufacturing
Service
Hotel Management
EDI
Document Management Software
Web Stores
The Cloud

Search For:

Read Our Latest Blog Posts

  • Sage 300 version 2022 product update 2 – What’s new?
  • What’s New in Sage 300 version 2022 – Product Update 1

Why Front Line Systems?

We believe that your business has an amazing capacity for innovation and growth and that technology can help get you there. Front Line Systems is a technology partner that believes in solving problems and creating solutions for the life of your business.   Learn More

Quick Links

Sage 300 Success Stories
Sage CRM Software
Hotel Software
Manufacturing Software
Meet the Front Line Systems Team
Warehouse Management Software (WMS)
Privacy Policy
Blog
Sitemap

Partnerships

Korber Partner

Sage Business Partner

Contact Us

Front Line Systems, Inc. is a Sage 300 and HighJump Warehouse Edge (a Körber product) partner. We are headquartered in Minneapolis, MN and have offices in Virginia and Washington DC. We serve clients across the United States. If you need Sage 300 support or would like a new warehouse management system don't hesitate to contact our team today.

Front Line Systems, Inc.
Phone: (866) 435-0243

Copyright © 2025 Front Line Systems, Inc.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.Ok