Tax Quiz: Wild State Tax Laws

by | May 27, 2019 | Tax, Tax planning, Tax Tips

Think taxes are simple and filled with common sense? Think again! Enjoy this fun quiz to see how well you know the crazy world of state taxes.

 

If you have a hankering for an apple or banana at work, you’ll pay an extra tax to buy fruit from a vending machine in which state?

  1. Georgia
    B. South Dakota
    C. California
    D. Oregon

 

 

 

  1. California. Cold food is tax-exempt if purchased at a store, but subject to tax on 33% of the price if you purchase fruit from a vending machine. If you sell fruit in this state…good luck keeping track of the tax.

 

 

Looking to finally get that “mom” tattoo on your arm? Which of these states charges a 6% tax on that tattoo?

  1. Minnesota
    B. Arkansas
    C. Delaware
    D. Texas

 

 

 

  1. Arkansas. Body piercings are also taxed at 6%. So if you are waffling between getting that tattoo or a nose ring, you can eliminate taxes as a deciding factor!

 

 

 

Have you ever looked at a tree in your yard and thought, “wow, that tree sure is exceptional”? If you have one of these “exceptional” trees on your property you might be entitled to a $3,000 tax deduction in which state?

  1. Hawaii
    B. Missouri
    C. Maine
    D. Alaska

 

 

  1. Hawaii. Worried about how new developments were destroying the environment in the 70’s, the Hawaii State Legislature added the tax deduction for expenditures paid to maintain an exceptional tree.

 

 

 

 

Next time you are at a bakery in this state and the baker lifts the knife to cut your bagel, stop them. It could be a taxable event! Can you name the state?

  1. Utah
    B. Wisconsin
    C. Pennsylvania
    D. New York

 

 

  1. New York. Slicing a bagel meets the state’s definition of prepared food and is subject to an 8 percent sales tax. That goes for applying cream cheese as well.

 

 

Looking for a long-term retirement tax-savings tip? Which state exempts you from state taxes once you turn 100?

  1. Michigan
    B. New Mexico
    C. Rhode Island
    D. Virginia

 

  1. New Mexico. If you are 100 or older and are not claimed as dependent, you are exempt from filing and paying New Mexico personal income tax.

As you enjoy the nice spring weather, spread some of this fun tax knowledge with family and friends.

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