Taxation, the lifeblood of any government, touches every aspect of our lives, from the purchases we make to the income we earn. Taxes are typically associated with the serious business of funding governments and public services. However, throughout history, some taxes have strayed far from the ordinary and ventured into the realm of the bizarre and amusing. From levies on peculiar items to duties aimed at curbing unconventional behaviours, these taxes offer a whimsical glimpse into the intersection of governance and human eccentricity.

Prepare to be amused and perhaps even astounded as we uncover the stories behind taxes on everything from sunshine to pumpkins and even stolen property, besides the better-known taxes imposed on beards, windows or playing cards. Beyond their comedic value, these taxes reveal insights into the cultures and concerns of their times, showing how taxation has been used not only to raise revenue but also to influence behaviour and fashion trends.

TAX ON PUMPKIN

Usually, when one encounters the word pumpkin, the festival of Halloween comes to mind first. Jack-o’-lanterns, with scary or funny faces carved from pumpkins, are a yearly Halloween tradition that has developed predominantly in the United States through the years. Whether one considers the pumpkin to be a fruit or vegetable is a matter of debate, but a few American states have laws about taxing it!

Did you know that although pumpkins are a tax-exempt food in the state of New Jersey, they are liable for sales tax if they are ‘painted, varnished or cut and sold as decorations’? The state of Iowa exempts pumpkins from being taxed, but only if they are purely for edible purposes and not carved or decorated. The state of Pennsylvania, too, follows suit.

URINE TAX

There is an old saying: “Money doesn’t stink”. The Roman Emperor Vespasian (69–79 AD) demanded a fee or tax on the collection and sale of urine from public toilets. Prince Titus was against this tax and tried with all his might to influence his father’s decision but failed.

In those times, human urine was seen as a valuable commodity in Rome. Its ammonia content made it an important ingredient in various industrial processes. It had many uses in leather, dyeing clothes and even brushing teeth!

Large quantities of urine were being collected from public toilets, which were then sold to various industries. There were reports of some enterprising businessmen collecting this urine. The Emperor soon taxed its purchase. This is said to be the origin of the popular Latin phrase “Pecunia non olet”, meaning “money doesn’t stink”.

TAX ON STOLEN PROPERTY

“If you receive $500 to kill your neighbour’s annoying doggy, or find $1 on the street, it’s all taxable income, the same as you would treat your paycheque,” said one American taxpayer mockingly. According to Publication 17, the Internal Revenue Service (IRS), the USA’s federal tax-governing authority, wants taxpayers to include on their forms ‘income from illegal activities, such as money from dealing illegal drugs. They want the taxpayer to make sure the amount thus ‘earned’ is put on ‘Schedule 1 line 8z, or Schedule C of Form 1040’ if from self-employment activity.

The agency also requests that “if you steal property, you must report its fair market value,” but only if you don’t “return it to its rightful owner in the same year.”

While still in context, let’s bring Deutschland in. It seems unbelievable, though; it was completely legal to bribe someone in Germany until 2002! These bribes were again tax-deductible, provided you disclosed the names of the recipients. Germany closed this huge loophole in their tax laws in 1999 and outlawed bribery in 2002.

COWARDICE TAX

“Cowards die many times before their deaths; the valiant never taste of death but once.” William Shakespeare thus spoke through the character of Julius Caesar.

In 10th-century England, to raise money for war, the King taxed the citizens unwilling to fight due to reasons including cowardice or fear. This tax was first imposed by King Henry I (1100–1135), and the rate was relatively low, but King John (1199–1216) later increased the tax rate to 300 per cent. Its official name was the Scutagium or ‘Scutage tax’, although somewhat aptly nicknamed as ‘Coward’s tax’. By this tax, a person could be exempted from the military service of the King, be a commoner, or be a warrior.

Some believe that this scutage was a significant factor behind the Magna Carta treaty of June 1215, which sought to limit the power of the monarchy.

Over time, this evolved into a simple land tax levied on knights. By the thirteenth or fourteenth century, this tax became redundant and gradually faded away.

BRICK TAX

The tax, when initiated in 1784, was charged at 2 shilling 6 pence, the ‘half crown’ coin, per thousand bricks. This later increased to 4 shillings and 5 shillings over time. The more bricks you use, the more tax you pay.

The tax on bricks may have started out as a reasonable idea to help finance Britain’s war in the American colonies, but policymakers quickly learned about the inventive power of people when it comes to tax mitigation.

Masons and builders then began making larger bricks as a countermeasure to lower taxes, which forced Parliament to limit brick sizes in 1801 and raise the tax even further. New buildings also began to be constructed with wood and thick boards instead of bricks. As a result, the brick tax was finally abolished in 1850. During this period, even log cabins were considered as an alternative!

HAT TAX

The British government introduced a tax on men’s hats during the time of William Pitt ‘The Younger’. It lasted from 1784 to 1811. It was based on the idea that a person who owns substantially more expensive hats is more affluent than a person who owns only one cheap hat or nothing. The objective was to earn revenue based on an individual’s relative wealth.

Taxes were imposed on the sellers, who would be required to buy a licence from the government. Even the death penalty was provisioned for traders who forged licenses! The law also had heavy penalties for those who failed to pay taxes.

To avoid this strange tax, makers stopped calling their creations ‘hat’. In response, by 1804, the government had introduced a tax on ‘any headgear’. Understandably, the hat tax made hats unpopular with men of the time.

Thankfully, this ‘hat trick’ didn’t last long and was finally abolished in 1811.

SUNSHINE TAX

Imagine sitting outside a Tuscan cafe with a cup of cappuccino on the table or enjoying a bright Florida morning on a sprawling lawn. Remember, sunshine isn’t free of tax!

In Italy, the Sunshine tax is an additional fee that some cafes charge for using their public spaces with outdoor seating. Basically, you pay a premium for that perfect spot under the Italian sun.

Nicknamed ‘Paradise tax’, the term is used in the USA to mean anything that has the effect of making costs higher in areas around the Sunbelt, i.e., the regions south of the 36th Parallel, which famously runs through the east-west ends of the country. It is not a tax in the strict sense of the term, but rather a difference between costs among locations.

The phenomenon arises because many American citizens are willing to accept lower earnings and higher costs of living to live in a place like Hawaii, California, Florida, Colorado, or other places that provide them with an attractive climate. It is taken as an added cost to live in one of the best climates on earth, where the sun shines almost every day.