Pumpkin tax smashed in Iowa

DES MOINES, Iowa, Nov. 1 (UPI) -- Iowa Department of Revenue officials, apparently spooked by publicity on the Internet, said they decided to ax the pumpkin tax.

The department said it announced the policy to tax pumpkins intended for use as jack-o'-lanterns last year -- but admitted not many people noticed until Wednesday when the story zoomed through cyberspace, The Des Moines Register reported Thursday.

As it voided the tax, the department defended its original reasoning in a news release, saying "Food and food ingredients are defined as substances that are sold for ingestion or chewing by humans and are consumed for their taste or nutritional value."

The statement didn't say why the department changed its policy, but Gov. Chet Culver issued his own statement, saying he reached out to the revenue collectors.

"I have directed the Department of Revenue to do the common-sense thing and suspend collection of this tax and offer refunds to consumers or retailers who have been affected," he said.