Well, it's not new exactly. The state Department of Revenue has simply decided that pumpkins should be subject to the state sales tax. That tax exempts food items, but the state has determined that the pumpkin that's sitting on your front porch isn't really food (and who can really argue that?).
If you Iowans do want to eat your pumpkin, and you don't want to pay tax for it, all you have to do is fill out an "Iowa Sales Tax Exemption Certificate" form and submit it to the state -- which sounds truly frightening.