Strange State Tax Laws You Never Knew Existed

7. California taxes fruit from vending machines. If you buy a banana from the produce section of a California grocery store, there's no tax. However, a banana dispensed from a vending machine is a taxable item.

These are just a few examples of the many odd taxes and difficult-to-track item categories that business owners have to contend with when selling goods and services and attempting to remain in compliance. The patchwork regulations often result from legislative efforts to encourage or discourage certain behaviors or reward constituent groups (e.g., wheat farmers). Even if the goals are laudable, the resulting complexity can significantly hamper business operations.