Taxware, a provider of transaction tax calculation and compliance solutions, has released its annual list of the "Top 10 Most Unusual U.S. Sales Tax Laws for 2006."

The company's team of domestic and international tax experts compiles the listings as part of monitoring sales tax rules around the globe.

Among those that made the list:

  • West Virginia checked in at No. 10, thanks to a special tax the state applies on sparklers and other novelties.
  • Kentucky placed No. 9 with its hefty sales tax on thoroughbred stud fees.
  • At No. 6, was Wisconsin, where cloth diapers are exempt from sales tax, but buyers of disposable diapers still pay the taxman.
  • California ranked No. 5, for its sales tax policy exempting fresh fruit -- except for apples purchased through vending machines, which are still taxable on 33 percent of the price.
  • Pennsylvania came in at No. 1, for taxing air -- or rather, the air dispensed through the coin-operated vacuum vending machines normally found at car washes.

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