Taxaholics of the day: Denver moves to tax cooking oil

By Michelle Malkin  •  June 1, 2009 11:32 AM

Saw this yesterday in the Denver Post. Restaurants in the Mile High City are fried over the latest tax grab:

Colorado Restaurant Association Big Cheese Pete Meersman is afraid the city of Denver’s Department of Revenue is jumping out of the frying pan and into the fryer.

At issue? During some recent restaurant-industry audits, the city has claimed separate sales tax on frying oil, claiming that the oil is a separate product because it is not absorbed into the product.

Try telling that to a cardiologist who wants you to cut down on French fries.

“Let’s say you have a grilled cheese sandwich restaurant,” Meersman said. “All the products you get in — including the oil, bread, cheese, garnishes — you don’t pay sales tax on because you’re going to turn around and add all those costs up, charge a price and the customer pays sales tax on top of that.

“The problem with trying to collect sales tax on wholesale cooking oil is that it is already being taxed on the retail side.”

The city’s vigilance in trying to collect a separate tax on oil has boiled to the point where Sysco Denver Food Service Co., the largest food-service distributor in the Rocky Mountain region, is disputing a $90,000 tax assessment on fry shortening.

“It’s a new interpretation by someone new in city government to try and tell us shortening is not part of the food,” said Sysco president Chris DeWitt. “We’ve never been taxed (on oil) before. This puts an undue hardship on the distributor who eventually must pass that cost along to our (restaurant) customers.”

…What’s next, he argues? “Are they going to start charging sales tax on potato peelings? Uneaten chicken bones? The water that’s used to boil pasta? Clam shells?

Soon, “Mile High” will refer to the mountainous stack of taxes driving businesses out of the state.

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Comments


  1. #710888
    On June 1st, 2009 at 11:38 am, verogolfer said:

    The next item they will try to tax is the writing of bloggers. $1 for nouns, and $2 for verbs. Of course, if you’re politically correct, you will get a discount.

  2. #710892
    On June 1st, 2009 at 11:40 am, b-cat said:

    …What’s next, he argues? “Are they going to start charging sales tax on potato peelings? Uneaten chicken bones? The water that’s used to boil pasta? Clam shells?

    Uhhh…now that you mention it, why, yes.

  3. #710893
    On June 1st, 2009 at 11:40 am, Truesoldier said:

    Sounds to me like these government officials in Denver need to get some oxygen quick to stem the hallucinations of a quick buck they are getting from the lack of oxygen in the mile high city.

  4. #710894
    On June 1st, 2009 at 11:41 am, sonofdy said:

    verogolfer: That will be $210.

  5. #710901
    On June 1st, 2009 at 11:48 am, granite said:

    Idiots.

    What else can one say?

    Dangerous idiots….

  6. #710906
    On June 1st, 2009 at 11:50 am, Paul Revere said:

    During some recent restaurant-industry audits, the city has claimed separate sales tax on frying oil, claiming that the oil is a separate product because it is not absorbed into the product.

    So the nanny state is again caught in a lie. Didn’t they make fast food restaurants change oil because of the transfats? Either it’s absorbed or it’s not.

  7. #710917
    On June 1st, 2009 at 11:55 am, DagneyT said:

    Denver, like much of Colorado, has been Californicated! Very sad.

  8. #710922
    On June 1st, 2009 at 12:03 pm, James Felix said:

    …What’s next, he argues? “Are they going to start charging sales tax on potato peelings? Uneaten chicken bones? The water that’s used to boil pasta? Clam shells?

    Please, don’t give them ideas.

  9. #710924
    On June 1st, 2009 at 12:04 pm, puhiawa said:

    Desparation often lets us separate the idiots from mere fools.

  10. #710928
    On June 1st, 2009 at 12:05 pm, James Felix said:

    Anyone else remember the live-action Popeye movie starring Robin Williams? The taxman in that film was supposed to be an over the top parody, but he’s sadly looking more and more real every day.

  11. #710930
    On June 1st, 2009 at 12:06 pm, b-cat said:

    On June 1st, 2009 at 12:04 pm, puhiawa said:
    Desparation often lets us separate the idiots from mere fools.

    Then elect them.

  12. #710932
    On June 1st, 2009 at 12:07 pm, RTater said:

    We got the government for which we voted.

  13. #710934
    On June 1st, 2009 at 12:08 pm, b-cat said:

    On June 1st, 2009 at 12:05 pm, James Felix said:

    LOL, Popeye being prophetic, how I hate the 21st century.

  14. #710936
    On June 1st, 2009 at 12:08 pm, Ragspierre said:

    http://townhall.com/cartoons/2009/06/01/3

    The only rational response…

  15. #710944
    On June 1st, 2009 at 12:16 pm, b-cat said:

    Try telling that to a cardiologist who wants you to cut down on French fries.

    That is why one should never give in to the statists’ demands. They will have it both ways.

  16. #710952
    On June 1st, 2009 at 12:21 pm, rambler said:

    How about taxing contributions given to the democrat party. I’d support that.

  17. #710956
    On June 1st, 2009 at 12:22 pm, walterc said:

    If they get away with this, expect every other entity in the nation with a sales tax to follow along.

  18. #710960
    On June 1st, 2009 at 12:25 pm, Freddy said:

    I wonder if it ever occurred to them that taxing FOOD is exactly what gets governments overthrown?

  19. #710962
    On June 1st, 2009 at 12:29 pm, denver republican said:
  20. #710976
    On June 1st, 2009 at 12:37 pm, spaceycakes said:

    “Are they going to start charging sales tax on potato peelings? Uneaten chicken bones? The water that’s used to boil pasta? Clam shells?

    In a word, ‘yes’.
    Wait ’til they tax you on the waste you let out in the toilet.
    Welfare recipients, slum-dwellers and those in Malibu/Beverly Hills will be exempt.

  21. #710981
    On June 1st, 2009 at 12:39 pm, b-cat said:

    Wait ’til they tax you on the waste you let out in the toilet.

    They already do here, in Charlottesville, VA. Its built into the water bill.

  22. #710982
    On June 1st, 2009 at 12:40 pm, Hangfire said:

    On June 1st, 2009 at 12:05 pm, James Felix said:
    Anyone else remember the live-action Popeye movie starring Robin Williams? The taxman in that film was supposed to be an over the top parody, but he’s sadly looking more and more real every day.

    Shhh. I wouldn’t go around telling a lot of people you’ve seen Popeye.

  23. #710993
    On June 1st, 2009 at 12:47 pm, no2pcbs1 said:

    when it comes to taking taxpayer money, liberals can be down right thieves.

  24. #710994
    On June 1st, 2009 at 12:47 pm, Danceswithdachshunds said:

    I only wish they’d make this tax very high to give restaurant owners no other choice but to move just outside the city limits.

    Real conservatives do not tax food at ALL regardless of how/where it is sold because it is taxing a basic act of living.

    What’s next from these lib elitists? How about a sales tax on rent or doctor visits or tuition or ___? There’s just no limit to what liberals can tax.

  25. #710996
    On June 1st, 2009 at 12:48 pm, GaryG said:

    I’ve been saying for a while now, they will start taxing how many times you use the sidewalk and how far you walked. Next will come how many breaths you take a day and a surcharge for athletes who breathe more and faster.

    By rotten crooks who are desperate to preserve their lifestyles, by stealing from the people.

  26. #710997
    On June 1st, 2009 at 12:49 pm, Rogue Cheddar said:

    On June 1st, 2009 at 12:08 pm, b-cat said:
    On June 1st, 2009 at 12:05 pm, James Felix said:
    LOL, Popeye being prophetic, how I hate the 21st century.

    “Wow! It’s a new day Olive! Igigigigig!”

  27. #711026
    On June 1st, 2009 at 1:10 pm, JHSII said:

    RTater #12

    We got the government for which we voted.

    Hey!! I didn’t vote for this government!!

  28. #711033
    On June 1st, 2009 at 1:23 pm, Danceswithdachshunds said:

    Hangfire said: Shhh. I wouldn’t go around telling a lot of people you’ve seen Popeye.

    The Tax Man: Well, first of all, there’s 17¢ new-in-town tax, and there’s 45¢ rowboat-under-the-wharf tax, and one dollar leaving-your-junk-lying-around-the-wharf tax, so all together, you owe the Commodore $1.87.

    Popeye: Uh, who’s this Commodore?

    The Tax Man: Is that the nature of a question? There’s a nickel question tax.

  29. #711039
    On June 1st, 2009 at 1:30 pm, RTater said:

    JHSII #27 – That’s why I used the word we, and not the word you.

    You’d think that the track record for democrat-majority cities and democrat-majority States would be enough to get people to stop voting for democrats.

    You would be wrong.

  30. #711051
    On June 1st, 2009 at 1:44 pm, kudafa said:

    This is another example of morons running the show. I believe it was N.Y. City where the perfectly stupid idea of taxing soft drinks with suger will raise revenues & somehow, through a process not known to science or any objective evidence, help reduce obesity. We have arrived at the point where even food can be divided into P.C. and Not P.C. Being Not P.C. makes that product, manufacturer, & end user a target for taxation & other punishments.

  31. #711075
    On June 1st, 2009 at 2:07 pm, JonB said:

    RTater: Liberals have reached a critical mass in the voting public (meaning just the people who vote). They have more people who are living off the government who vote, than the conservatives have who work for a living and vote. This number is of course skewed, as always, by the number of dead who vote, the number of illegals who vote, and the duplicate votes. Unless there is a major upheaval of some sort, the Dems have the votes sealed up for the next century.

  32. #711104
    On June 1st, 2009 at 2:24 pm, AlohaGuy said:

    …What’s next, he argues? “Are they going to start charging sales tax on potato peelings? Uneaten chicken bones? The water that’s used to boil pasta? Clam shells?

    Yes, and the steam in “steamed vegetables”.

    I believe that when you use fire to cook, oxygen from the air is used and has not been taxed. An oxygen tax is in order here.

  33. #711106
    On June 1st, 2009 at 2:25 pm, AlohaGuy said:

    When you have a beer, it’s taxed, but when you pee, you have only paid tax on the water in the sewage, not the urine. Don’t make me describe the opportunity to tax solid waste…

  34. #711115
    On June 1st, 2009 at 2:28 pm, spaceycakes said:

    Don’t make me describe the opportunity to tax solid waste…

    AlohaGuy–that would mean…*horrors!*…you tax Barney Frank???

  35. #711118
    On June 1st, 2009 at 2:31 pm, hawkeye54 said:

    when it comes to taking taxpayer money, liberals can be ARE down right thieves.

    Given the desperation for raising reveune, the libs will try to tax everything they can think of if they can get away with it.

  36. #711119
    On June 1st, 2009 at 2:32 pm, hawkeye54 said:

    AlohaGuy–that would mean…*horrors!*…you tax Barney Frank???

    Nah, he’s a member of CONgress, therefore, exempt.

  37. #711126
    On June 1st, 2009 at 2:40 pm, LOBOMAN said:

    On June 1st, 2009 at 12:21 pm, rambler said:
    “How about taxing contributions given to the democrat party. I’d support that.”

    Best idea I’ve seen in a long time……. Something like a idiot tax :)

  38. #711140
    On June 1st, 2009 at 2:54 pm, On-my-soap-box said:

    On June 1st, 2009 at 12:05 pm, James Felix said:
    Anyone else remember the live-action Popeye movie starring Robin Williams? The taxman in that film was supposed to be an over the top parody, but he’s sadly looking more and more real every day.

    That’ll be a $1 “I watched Popeye movie” tax.

    Crist put another $1 per pack tax on smokes here in Floriduh.

    Up next? That’ll be a $1 tax on that $1 tax you owe on your income tax.

  39. #711149
    On June 1st, 2009 at 3:03 pm, Teddy Kennedy said:

    Errah, by that logic they can charge us tax on engine oil or earthworm in our yards . . . . why not a cap and trade system for the hot air generated by local state and federal politicians. We go broke paying their tax and it would put an end to all this uselessness.

  40. #711153
    On June 1st, 2009 at 3:05 pm, Teddy Kennedy said:

    Errah #34 LOL!!!!!!!

  41. #711171
    On June 1st, 2009 at 3:14 pm, Regulus said:

    Taxing our culinary “vices” is the first half of the equation.

    The other half comes when we get socialized medicine and its system of rationing: if you’re overweight, for example, don’t expect any sympathy at the hospital if you find yourself suffering from heart disease or diabetes. Instead, you’ll be presented with a background investigation form:

    Do you now or have you ever:
    - Eaten fast food?
    - Drank alcohol?
    - Eaten pizza?
    - Drank soda?
    - Eaten red meat?

    If you answered “yes” to any of the above, then COVERAGE DENIED!

    Are you now or have you ever been:
    - A cigarette smoker?
    - A non-vegetarian?
    - An alcoholic?

    If you answered “yes” to any of the above, then COVERAGE DENIED!

    If the answers to all of the above are “no,” then get in line right after the pregnant woman waiting 10 months for prenatal care…

  42. #711176
    On June 1st, 2009 at 3:16 pm, John Deaux said:

    On June 1st, 2009 at 2:54 pm, On-my-soap-box said:

    Crist put another $1 per pack tax on smokes here in Floriduh.

    And yet Crist thinks he has a shot at the open Senate seat. After he sucked up to Obama for a share of the stimulus pie, he’ll never see my check mark next to his name.

  43. #711185
    On June 1st, 2009 at 3:20 pm, Mark La Roi said:

    What a mess we’ve gotten ourselves into. This Russian blogger that Drudge linked is sounding mroe and more prescient: http://english.pravda.ru/opinion/columnists/107459-0/

  44. #711243
    On June 1st, 2009 at 3:41 pm, AlohaGuy said:

    #43 – oh great….and the Chinese laughed at Geithner. Both correct…

  45. #711248
    On June 1st, 2009 at 3:43 pm, On-my-soap-box said:

    JD,

    Ditto. He may get elected because he is leaning waaaaaaayyyyyyy left. More taxes – he is a shoe-in for the liberal vote. I look at our Republicans in Florida and have to shake my head. LOTE voting is becoming so tiresome.

    How’s that baby doing?

  46. #711278
    On June 1st, 2009 at 4:06 pm, Papa Louie said:

    “…the city has claimed separate sales tax on frying oil, claiming that the oil is a separate product because it is not absorbed into the product.”

    Whether the oil is absorbed into the product or not doesn’t matter. The cost of the oil along with all other costs of making the product are factored into the final price; otherwise, they would lose money and go out of business. Sales taxes are charged on the final purchase price, so the full cost of the oil is already being taxed.

    The same thing happens with items like napkins and cups. These items are not consumed by the customer, but their costs are factored into the final price and are taxed along with the food.

    Maybe Denver customers should sue to recover some of their sales taxes. Since labor is already taxed through income tax, there should be no sales tax on the cost of labor that is factored into the price of the product. That is another form of double taxation.

  47. #711325
    On June 1st, 2009 at 5:07 pm, NeoFan said:

    Maybe the City and County of Denver will begin paying the homeless for urinating and defecating on the City streets because they are adding “Product” to the downtown area and not taking away from it?

  48. #711336
    On June 1st, 2009 at 5:27 pm, ScottyDog said:

    Isnt this why we came to America and left the UK?

    Sounds to me like it is time to refresh the tree of Liberty.

  49. #711349
    On June 1st, 2009 at 5:59 pm, rightwingrocker said:

    Well what exactly do we expect after all the stupid taxes WE have allowed in this country? If you hand a lunatic a loaded gun and tell him to shoot you with it, do you think he’s going to just walk away?

    RWR
    http://www.rightwingrocker.com

  50. #711424
    On June 1st, 2009 at 8:20 pm, torabora said:

    Let’s tax taxes!!!

    Then let’s start collecting next years taxes this year!

    And we can tax the future taxes too.

  51. #711456
    On June 1st, 2009 at 9:44 pm, AlohaGuy said:

    Let’s tax taxes!!!

    Here in Hawaii they do. It’s an excise tax, not a sales tax, and the money you collect to pay the tax is also taxed.

  52. #711476
    On June 1st, 2009 at 10:22 pm, Socratease said:

    Tell that tax collector he can have his cooking oil tax after he’s chowed down on a basket of fries cooked in used motor oil.

  53. #711560
    On June 1st, 2009 at 11:45 pm, jangar said:

    When did the elevation of NYC become 5280 feet?

  54. #711706
    On June 2nd, 2009 at 9:39 am, tiredofit08 said:

    On June 1st, 2009 at 12:39 pm, b-cat said:

    Wait ’til they tax you on the waste you let out in the toilet.

    They already do here, in Charlottesville, VA. Its built into the water bill.

    it’s called a sewer charge in OK…you flush a whole lot your sewer charge goes up according to your water usage…

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