And the ordinary taxpayer doesn't even know those exemptions exist. Even the sales tax calendar is getting complicated. California, Florida, Hawaii, Nevada, North Dakota and Vermont are considering similar tax holidays. Fourteen other states have different types of exemptions. Even in those states, however, some clothes are taxable, from sports- wear to formalwear and mink coats to Halloween costumes.
Food is even more confounding.
Twenty-seven states exempt most groceries, but snack foods and soft drinks often are taxed. Tax codes across the country are full of specific exemptions for baking chocolate and breath mints, edible seeds and cooking wine. Baked goods are taxed based on the number you buy, fruit and vegetable drinks on the percentage of real juice in the can. A software program purchased in a computer superstore is taxed. Download it electronically and you might get off tax-free.