Today is National Ice Cream Day. And in case you think that it’s a day made up by scheming kids to convince parents to give them ice cream (I wouldn’t put it past mine), it’s a real holiday. Well, real-ish.
National Ice Cream Day, as well as National Ice Cream Month (I’m not kidding), are “official” holidays designated by then-President Ronald Reagan following a joint resolution from Congress. The resolution, S.J.Res.298, was signed into law on July 2, 1984. The text of the resolution is as follows:
Whereas ice cream is a nutritious and wholesome food enjoyed by over 90 per centum of the people of the United States;
Whereas the ice cream industry with approximately $3,500,000,000 in annual sales provides jobs for thousands of citizens and uses nearly 10 per centum of the milk produced by United States dairy farmers, thereby contributing substantially to the economic well- being of the Nation’s dairy industry; and
Whereas ice cream enjoys a reputation as the perfect dessert and snack food, and over eight hundred and eighty-seven million gallons of ice cream were consumed in the United States in 1983:
Now, therefore, be it
Resolved by the Senate and House of Representatives of the United States of America in Congress assembled. That July 1984, is hereby proclaimed as “National Ice Cream Month”, and July 15, 1984, as “National Ice Cream Day”, and the President is authorized and requested to issue a proclamation calling upon the people of the United States to observe ice cream month and ice cream day with appropriate ceremonies and activities.
So there you have it. It’s the law that you should observe the day with “appropriate ceremonies and activities.” For most of us, that means eating a little ice cream. But before you run out to the ice cream truck, hold onto your wallet. Whether you’ll pay sales tax on top of the price of that ice cream depends on where you live.
Five states do not have a sales tax. Those states are Alaska, Delaware, Montana, New Hampshire, and Oregon (though Alaska municipalities may impose local sales taxes).
In most states, prepared foods to be consumed on or off the premises are taxable, but the rules can be complicated. In Arkansas, for example, ice cream purchased at an ice cream shop is likely taxable but if purchased at a grocery store, ice cream (packaged, not made or served by the seller, including toppings and novelties) is generally eligible for a reduced sales tax rate. Similarly, in Virginia, certain types of vendors are presumed to be sellers of food for immediate consumption including ice cream stands and trucks. In Washington, prepared foods are taxable and include foods sold with utensils provided by the seller, including yogurt or ice cream cups that are packaged with wooden or plastic spoons.
In some states, including Alabama and South Carolina, groceries are generally taxable. What’s considered a grocery item can vary from state to state.
Not surprisingly, some states have more of an incentive to get you to buy. In Iowa, the 4th state in the country for ice cream production (and 12th in total pounds of milk produced), milk and milk products, including packaged ice cream products are exempt from sales tax. Similarly, Indiana, the 2nd state in the country for ice cream production, also generally exempts ice cream from sales tax. California leads the nation in ice cream production and yes, they also generally exempt “milk and milk products, including ice cream, ice milk, and ice cream and ice milk novelties, sherbets, imitation ice cream, and imitation ice milk, dried milk products, sugar of milk, milkshakes, malted milks, and any other similar type beverages composed at least in part of milk or a milk product and requiring the use of milk or a milk product in their preparation.”
Another quirk? In California, tax applies to “sales of sandwiches, ice cream, and other foods sold in a form for consumption at tables, chairs, or counters or from trays, glasses, dishes, or other tableware provided by the retailer or by a person with whom the retailer contracts to furnish, prepare, or serve food products to others.” But beware: while it includes drive-ins, a passenger’s seat aboard a train or a spectator’s seat at a game, show, or similar event is not a “chair”, and thus, tax doesn’t apply.
And mixing foods? That’s a whole other level of complication. In Wisconsin, prepared foods for immediate consumption are taxable. But ice cream used in other forms – like cake – is not considered taxable. For more, check out this article by Forbes contributor Josh Barro.
I’m sure you’re getting the picture: sales tax rules are incredibly specific. Really. Sometimes, all it takes is leaving the premises or adding a topping to make something go from nontaxable to taxable (and vice versa). Numerous exceptions apply – and sometimes, these exceptions, like California’s “80/80 rule” are based on a formula and are practically invisible to the consumer.
A better way to enjoy #NationalIceCreamDay? Scoop out some free ice cream. Here’s where to get it:
- Carvel. Buy one, get one free, any size soft serve ice cream cone or cup at participating Carvel locations.
- Cumberland Farms. Cumberland Farms is introducing a brand new line of ice cream sandwiches in time for a National Ice Cream Day treat: purchase a 20oz Pepsi or Mountain Dew beverage and get a FREE Farmhouse Premium Ice Cream Sandwich of your choice at a participating location near you.
And yes, Fido’s included, too:
- PetSmart. Free samples of doggie-safe (and doggie-delicious) ice cream at a local PetSmart PetsHotel.
Not free but still cool:
- Baskin-Robbins. Baskin-Robbins will donate 75 cents from the sale of each float today to the USO in honor of its 75th anniversary on National Ice Cream Day. The donations will go towards supporting the USO’s mission of connecting America’s military to their family, home, and country, no matter the circumstances. You can also send a thank you message for free to the troops by clicking here (you’ll be taken to the USO site).
- Marble Slab Creamery (Maggie Moo’s). Take $2 off your purchase of $10 or more at participating locations through 7/31.
- Tastee Freez. Tastee Freez is offering $1 off banana splits with coupon at participating locations.
If you know about any other National Ice Cream Day deals, let me know in the comments or shoot me an email.
Now, go eat some ice cream. It’s your patriotic duty.