A children’s pumpkin stand taxed? Two children selling pumpkins to earn money so they could participate in wrestling, and dance programs at their school, were told by the Idaho State Tax Commission that they either needed to pay taxes, or stop selling pumpkins.
The Idaho State Tax Commission visited the home of Jacob and Sami-Lou Charis, who are six and four years old, and told their mother that she either needed to get a license for the children’s pumpkin stand or they would have the state come in and shut the children’s pumpkin stand down. The parents say that they thought it was a great way for their children to learn about earning their own money. The state says the reason for the license is so they could get the tax commission on the sale of every pumpkin as per the ” Washington Post”.
This is reminiscent of last years’ lemonade stand closure in Portland Oregon, a seven year old girl, had opened her lemonade stand after seeing it done on a cartoon. She was selling her lemonade for 50 cents per cup when a state inspector came up and asked for her license. When she could not produce a license, she was threatened with a $500.00 fine and left her stand in tears.
With so many illegal activities happening in our Country, is it right to take the time and try to tax a children’s pumpkin stand? As far back as I can remember children have been trying to make money by selling lemonade, mowing lawns, shoveling driveways, or now selling pumpkins.
There are many children that go to houses and ask if they can make money by raking leaves or shoveling snow. Are they in violation of any state laws? Are our states now going to stop children from earning money from something as simple as a pumpkin stand, or when children do earn money from these things, will they be taxed on that income?
In the case of the children’s pumpkin stand in Idaho, the Commissioners’ office stated that if the parents want to teach their children about business they should also teach them about paying taxes so the children learn the correct way to operate a business. That sounds reasonable, but what will this lead to? If a second hand store has to pay taxes, will people who have garage sales have to pay taxes on what they earn too?
There are many unanswered questions with the children’s pumpkin stand taxed, in Idaho. Where did all those pumpkins come from, did the family grow them, were the pumpkins a donation from someone? Maybe we will hear more on this story but until we do, be careful when your child goes to shovel someone’s driveway this winter.