8 Craziest Taxes You Probably Didn't Know About
The IRS assesses what is know as a “gift
tax” on the transfer of property between one taxpayer to another while receiving
either nothing or something with a less than equal value in return. The IRS code
claims that any gift can be taxed, but there are many exceptions. According to the
IRS the gifts under the annual exclusion amount, gifts relating to educational or
medial expenses, gifts to a spouse, and donations to a political organization or
charity are not taxable.
In addition to the gift tax, there are dozens of other strange taxes American taxpayers
are forced to pay every year. Below is a list of the top 8 craziest taxes paid by
citizen pay across the country.
1) Illegal Drug Possession
11 states in this country, including North Carolina and Nevada, tax citizens on
possession of illegal drugs. After acquiring an illegal substance in North Carolina
you can go to the Department of Revenue and pay a tax on the drug. In exchange,
you will receive a stamp to affix to your drug which serves as evidence that a tax
was paid.
Although you do not need to show any form of identification to pay the tax, and
it is illegal for revenue employees to snitch, only about 77 North Carolinians have
come forth to pay the illegal drug tax since it’s inception. However, the tax has
generated an estimated $78.3 million in state revenue. But nearly all of these funds
were generated for taxes levied on illegal drug users who were busted by the police
and forced to pay the tax.
2) Profit from Illegal Drug Dealing
In addition to taxes on illegal drugs by many state governments, anyone profiting
from the sale of illegal substances must claim the money as income on their federal
tax returns. According to the IRS, "illegal income, such as money from dealing illegal
drugs, must be included in your income on Form 1040, line 21, or on Schedule C or
Schedule C-EZ (Form 1040) if from your self-employment activity."
3) Utah Nudity Tax
In the State of Utah, taxpayers that own businesses where "nude or partially nude
individuals perform any service" have to pay a 10% sales and use tax. It applies
to all revenue from admission fees as well as the sales of merchandise, food, drink
and services. These expenses are paid by the business owners who likely pass along
the additional costs to their customers.
4) Money received from bribes
According to Page 87 of the Internal Revenue Service code, "if you receive a bribe,
{you must} include it in your income." But what are the odds that some one who accepts
a bribe will be willing to pay taxes on it?
5) Jock Taxes
Multiple states and local governments assess a specific tax on the income earned
by athletes, and the wages they pay to non-athletic employees such as personal assistants.
California was the first state to levy a jock tax in 1991, but today most states
with a professional sports team impose a jock tax.
6) Stolen Property Taxes
Page 90 - "If you steal property, you must report its fair market value in your
income in the year you steal unless in the same year, you return it to its rightful
owner." Are there actually criminals out there stupid enough to go for this?
7) Alabama Card Tax
Anyone who purchases a deck of cards in the state of Alabama must pay a ten-cent
”card tax.” However, the state law claims that the tax must be levied on the purchase
of any deck containing "no more than 54 cards". So if you want to avoid the tax
you can look for a deck with an extra joker.
8) Maine Blueberry Tax
If you live in Maine and love blueberries, you might be surprised to know that the
state levies a tax on the blueberry industry. According to the law, anyone who grows,
purchases, sells, handles or processes blueberries is subject to a $0.75 tax per
pound.