Every now and again, something just strikes people the wrong way. This morning, my email box was blowing up about a little matter in Georgia: House Bill 385. The bill, which weighs in at an amazing 127 pages, is already generating heat for its plans to provide a “comprehensive revision of the revenue structure of the State of Georgia.” What that means, in lay speak, is that in exchange for dropping corporate tax rates, the state plans to tax nearly everything you can touch. And I’m not kidding (the pages and pages of repeals are mind-boggling). But tucked away in the middle of this bill is perhaps the worst PR move that the legislature could make: a plan to tax cookie and popcorn sales from Girl Scouts and Boy Scouts.
I have to wonder what the good folks in the Georgia legislature are doing… Some things are just sacred. And I think we all know that Girl Scout cookies are one of those things.
For the record, I think it’s a stupid idea. My daughter was a Brownie and I’ve done my time at a cookie table. It’s hard work (and in January, in Philly, it’s also pretty darn cold). Those girls have a lot going on as it is (remember, they’re as young as 5 years old). Now, the Georgia legislature would, in addition to having them calculate the cost of several boxes of Samoas and issue change accordingly, have them figure sales tax. Right. If you’ve ever been to a convenience store, you know that many adults can’t manage this with the assistance of a cash register. But now they’re going to ask kids to do it because apparently, the sales of Girl Scout cookies are going to make the difference in the Georgia budget this year.
As you can imagine, the Girl Scouts are pushing back. The Girl Scouts of Greater Atlanta have issued a statement decrying the proposal and asking residents to express their concern in a “courteous, Scout-like manner.”
To be fair, their list of potential effects of the tax is a little misleading. The list implies that the tax would result in the loss of funding because “a portion of the funds earned by our Scouts for their many leadership, camping and community service programs would be diverted to pay sales tax.” That’s not true since sales and use taxes are imposed on top of the cost of goods and services and are borne by the consumer, not the seller. The seller must collect and remit the tax but the seller isn’t responsible for paying the tax out of pocket.
But the Girl Scouts hit the nail right on the head when they criticize the legislation for the fact that “the administrative burden placed on councils to remit payment of sales taxes to taxing authorities would divert limited financial resources away from program support.” Absolutely true.
In fact, this is a problem with the overall legislation. The imposition of sales taxes across the board is short-sighted and administratively, a nightmare. For a party that claims to want less government, it’s certainly going out of its way to create more work for government.
Further, including sales from nonprofits which were previously exempt creates administrative and organizational burdens for groups which are, by their very nature, not motivated by profit. It’s not the same as taxing big companies who exist to make money. The Girl Scouts and Boy Scouts of America aren’t selling cookies to stock their pensions or buy corporate jets. They’re funding programs where they learn how to be good citizens. On their web site, they note that their mission statement is:
Girl Scouting builds girls of courage, confidence and character, who make the world a better place.
Seems like a pretty noble goal if you ask me.
The fact that the Girl Scouts are called out in the bill is even more absurd when you consider that Girl Scouts were actually founded in Georgia. The Girl Scouts of America were founded nearly 100 years ago (they officially hit the century mark next year on March 12) by Juliette Gordon Low, of Savannah. Her image now sits in the capital in Georgia, in the very same home as the legislature which is now apparently bent on thwarting her legacy.
I know that sounds dramatic. I’m not trying to make a big deal out of the act of taxing cookies. But this isn’t just about the Girl Scouts. It’s about parity, efficiency and thoughtfulness inside our tax policy. I submit to you that the Georgia legislature tax policy lacks all of the three. And the impact is going to be felt most by those that can manage – and absorb it – the least. It just so happens that some of those impacted happen to look awfully cute in a beanie cap.
This is absurd. As you rightly point out expecting little girls to figure sales tax instead of big businesses with their reams of accountants is just wrong. As a lifetime member of the Girl Scouts, I am appalled. Will forward this on to my girl scout list.
While I don’t particularly care that it is the Girl Scouts, I find it more shocking that they are calling out a non-profit like this. Are other non-profits that sell items being called out to pay taxes? If not, is the move even legal/Constitutional?
Evan, yep, nonprofits are targeted in the legislation.
It is legal bc most nonprofits are exempt from income, not sales and other taxes.
As I understand it (and I may not), a tax exempt organization can be taxed on sales that are outside the purview of their not-for-profit activities. Like a gift shop or concession stand at a not-for-profit theater. Girl Scout cookies seem to fall into kind a gray area there, because while they are sales, they are also conform to the girl scout mission of teaching girls to be awesome. (I may be paraphrasing their mission statement a bit.)
I would like to suggest some sort of tax exemption for deliciousness.
Maybe the girl scouts should give away the cookies for a suggested donation.
Or better yet, state the value of the cookies is say, $1.50 and add $.15 for tax and the rest of the $4 is donation then we could all take $2.35 as a charitable deduction.
There is no grey area regarding cookie sales. The purpose of girl scout cookie sales is purely FUNDRAISING, an income-generating activity that is conducted by all non-profits.
I think this is a good thing. Teach them young how evil the govt is and how society would be better off without it.
Yes Dave the government is evil. I cringe every day when I drive on paved roads, or see yet another house fire put out. Getting mail regularly delivered is horrible and it pains me not to be able to read at night by the glow of the Cuyahoga Rive on fire. Oh well I guess I’ll just have to live with these evils and more.
It will reduce the income of the girl scouts because people will buy less. I have 2 daughters in girl scouts this year. The girls worked extremely hard and sold an excellent amount, but due to the economy they worked twice as hard as the year before and sold less. They were working towards paying for extra educational activites and the girls decided to forgo the extra activities and donate their troop funds to various charities. In addtion to the finiancial donation they will be donating their time to help improve the charities of their choice. Next year when my youngest will be old enough for scouts I will probably not sign them up due to the fact that the cost of everything will increase. This includes the gas, snacks, etc. that I provide to the whole troop and the over all cost will be above our family budget. Which I am sure will need an addtional 6+% pulled from somewhere!