Don't Mess With Taxes

Photo by RDNE Stock project

Valentine's Day is tomorrow. The annual Feb. 14 celebration of love immediately conjures thoughts of hearts, flowers, chocolate, love songs, rom-coms, and taxes.

Yes, taxes.

I don’t want to interrupt, at least not too much, your efforts if you’re still nailing down events and gifts for tomorrow. But the following tax considerations might have an impact on your choices for Valentine’s Day.

In most cases, it will be state taxes that come into play. And since states don’t impose sales taxes on all goods and services in a uniform manner or at a uniform rate, your Valentine’s Day tax mileage will vary.

Five states don't have sales taxes. Many states do not tax services. Others have an exemption for taxes on food, but they often define food in such intricate ways that it can give you heartburn.

Candy, and in particular chocolate, remains a popular Valentine’s Day gift choice. Some states have adopted a uniform definition of candy, but many use their own unique definition. A few states separately address chocolate. Avalara offers a rundown of which states tax candy, which states don’t, and how they candy.

Speaking of eating, taking your true love to a restaurant for a romantic Valentine’s Day dinner definitely will have tax added. Dining out, or "prepared food" in sales tax speak, is pretty uniformly taxable even if there is otherwise an exemption for other food, but again definitions vary.

If you try to avoid the tax collector by cooking a Valentine’s Day meal at home, some of your grocery items, depending on where you live, also could mean added tax at the register.

And if you're toasting your romance with an adult beverage, federal and state alcohol excise taxes will add to that bottle's cost.

Instead of sweets, you’re giving your sweetheart a bracelet for Valentine’s Day. That purchase likely included a sales tax. And while many states do not specifically address jewelry in their tax code, making it subject to the general sales tax rate, those that do often collect tax on the items a higher tax rate.

In Connecticut, for example, watches or jewelry that sell for $1,000 or more are also subject to the state’s luxury tax. That means instead of the Constitution State’s regular 6.35 percent sales tax, the diamond trinket for Feb. 14 will include a 7.75 percent added tax.

Flowers also are generally taxable. If you have them delivered instead of bringing them yourself, you also could be taxed on that service. However, a couple of states have limited exemptions for flowers from certain sources. A few states have a sales tax exemption for food-producing plants, so you might want to consider a strawberry plant or, if your relationship is a bit tangier, a lemon tree.

Again, the taxes tacked on to your Valentine's Day gift probably won't change your choice. But it always helps to know just what you're paying.

OK, enough with the taxes…for now. Don't worry about them on Feb. 14, which I hope is a perfect Valentine's Day for you and your love.

You also might find these items of interest:

• Tax issues newlyweds need to consider
• 3 charitable ways to celebrate Valentine's Day
• State tax collectors get Valentine's Day gifts, too, in form of sales tax collections

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