Roses Are Red, Violets Are Blue, Sugar Is Sweet, But Are Taxes Due?

Wolters Kluwer Tax & Accounting looks at taxes on popular Valentine’s gifts

Most states have a sales tax on consumer purchases. Currently, only five states do not: Alaska, Delaware, Montana, New Hampshire, and Oregon. However, state laws vary greatly as to what purchases are exempt from their sales taxes.

Which sweetheart gifts are subject to taxes

The following are some likely categories of Valentine’s Day gifts and the states in which they are subject to sales tax or exemption:

  • Floral Arrangements: Floral arrangements are generally taxable in all states except MI, where plants purchased at a business that accepts food stamps are excluded from sales tax. Food producing plants are exempt in CA, FL, MA, NV, TX and WI
  • Candy: These states generally apply a sales tax for candy: AL, AR, CO, CT, FL, HI, ID, IL, IN, IA, KS, KY, ME, MD, MN, MO, MS, NJ, NY, NC, ND, OK, RI, SD, TN, TX, UT, VA, and WI. Candy is generally exempt from sales tax in AZ, CA, GA, LA, MA, MI, NE, NV, NM, OH, PA, SC, VT, WA, WV, WY, and the District of Columbia
  • Jewelry: Jewelry purchases are generally taxable in every state that has a sales tax, though Connecticut has a higher rate for purchases over $5,000. New York provides that specialty or jewelry teeth are not exempt prosthetic dental devices and therefore are taxable
  • Dinner Out (or “prepared food” in sales tax speak): Taxable in all states with a sales tax
  • Alcoholic Beverages: Alcoholic Beverages are taxable in all states with a sales tax, except Kansas and Massachusetts
  • Admissions: Admissions to entertainment events are taxable in AL, AZ, AR, CT, FL, GA, HI, ID, IA, KS, KY, LA, MN, MS, MO, NE, NJ, NM, NY, NC, ND, OK, SC, SD, TN, TX, UT, VT, WA, WV, WI, WY, and the District of Columbia. Admissions are exempt in CA, CO, IL, IN, ME, MD, MA, MI, NV, OH, PA, RI, and VA

Our experts ‘love’ sharing their knowledge on taxes

Tax expert Carol Kokinis-Graves, JD, Senior State Tax Analyst for Wolters Kluwer Tax & Accounting, is available to discuss the potential state sales tax issues surrounding Valentine’s Day gifts and similar state sales tax issues.

To read the full press release, click here.

Media Contact:

To arrange interviews with Carol Kokinis-Graves and other federal or state tax experts from Wolters Kluwer Tax & Accounting on this or any other tax-related topics, please contact:

MARISA WESTCOTT
212-771-0853
marisa.westcott@wolterskluwer.com

AUTHOR

Wolters Kluwer Tax and Accounting

Wolters Kluwer Tax and Accounting is a leading provider of software solutions and local expertise that helps tax, accounting, and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy and efficiency. Wolters Kluwer Tax and Accounting is part of Wolters Kluwer N.V. (AEX: WKL), a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services. Wolters Kluwer reported 2016 annual revenues of €4.3 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide. Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

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