In March 2010, Colorado eliminated a tax exemption for non-essential food items and packaging. According Wallet Pop, "while cups are considered essential, cup lids are not and, hence, taxable."
Custom-made costumes, Indiana In October 2010, the Indiana Department of Revenue issued a Letter of Finding that designing and producing costumes was subject for an additional state sales tax due to its nature as a "retail unitary transaction."
Balloon rides, Kansas
The wizard is not amused. Last year the Kansas' Department of Revenue decided that the state should tax tethered balloon rides. But if the balloon is piloted "some distance downwind from the launching point" it's tax-free!
Aloha from Hawaii
Neil Abercrombie, the state's new governor, wants to impose a tax on pension income, raise taxes on alcohol, slap a tax on soda and increase taxes on time-share properties.