And you thought your taxes were bad!
Taxes generally come to a person's mind as the middle of April comes near each year. As the deadline for paying taxes draws near, individuals may try to brush up on the rules that apply to their specific situations.
If a person owns a home, for example, he probably wants to know about all of the deductions that are available to him. As he is perusing the bulk of the tax code for such details, it may never cross his mind that there are some very, very strange tax laws on the books.
Take, for instance, the law that imposes a tax on the purchase of an illegal drug. No kidding. In 23 states, illegal drugs are taxed. If a person buys marijuana in one of these states, he is required to turn in a report within 48 hours to the Department of Revenue, pay the taxes assessed, and then receive a stamp that covers the illegal drug.
How about the tax in Alabama that is levied on decks of playing cards? It is a whole 10 cents.
Then there's the tax in Chicago on soda drinks that come from a soda fountain. The tax rate is 9 percent. If the drink is in a can or a bottle, though, the tax rate is only 3 percent.
An interesting tax was imposed in Texas on belt buckles. While the state allows a tax holiday for school clothing and supplies, it still taxes belt buckles but not the belts on which these buckles will fit. Cowboy boots and hiking boots get a tax pass, but climbing boots and rubber boots do not.
Lastly, if you purchase a bagel in New York, be ready to pay sales tax on it if it's sliced. If it is whole, however, the same tax does not apply. Apparently, slicing the bagel at the shop moves the bagel into the category of prepared food.
As we dive head-first into tax season, it's important to not only consider what crazy tax laws that might be imposed upon you, but there's also outrageous tax deductions some individuals might be able to utilize, such as fake breast implants, or donating rare blood. Be sure to do your homework before filing taxes this year!