From Tanning to Balloon Rides, 10 Strange Taxes
Legislators introduced peculiar taxes as a result of the recent downturn.
Feb. 23, 2011 — -- In their haste to find ways to fill gaping budget gaps, legislators across the nation are exploring odd corners of the economy, throwing fiscal spaghetti at walls, trying to see what sticks.
Taxes have become even more far-reaching in the recent economic downturn that began in earnest for governments more than a year ago, according to Kail Padgitt, an economist with the Tax Foundation, a non-partisan tax research group in Washington, D.C.
Businesses from tanning salons to balloon rides are coming under the scrutiny of lawmakers seeking tax targets. Colorado is even debating a tax on bull semen.
"You're not raising a lot of money with them. But the idea would be to patch budget holes," Padgitt said.
Connecticut consumers will see an increase in their sales tax and new levies on services like haircuts and car washes. Gov. Dannel Malloy proposed last week to raise sales and income taxes by $1.5 billion. Last month, Illinois increased its income and corporate tax rates, trying to solve its own fiscal woes.
Padgitt said most politicians are reluctant to raise major taxes, like income and sales taxes, so they often look for multiple smaller alternative sources of revenue.
"Some of the sources of revenue seem quite odd," Padgitt said. "They're taxing a small select group so you can push the burden onto a certain group but not alienate yourself from the majority of voters."
Here are some unusual taxes across the country, some state, some local and even a federal tax aimed at one industry:
Bull semen, Colorado
There's a heated debate in Colorado over applying sales tax to animal vaccines, hormones, animal drugs and yes, bull semen. Legislators reckon they can raise $1.5 million by getting rid of the exemption for these products. Ranchers and farmers are seeing red, and that's no bull.
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