Expert: Shasta McLaughlin - 9/24/2010

Question
Hi Shasta,

I am interested in selling prints of my artwork.  My question to you is about sales tax.  If I am going to sell at an art show and possibly a web site, do I need to collect sales tax?

Thanks

Anthony  

Answer
Dear Anthony,

If you need to collect sales tax depends on the tax laws of your city, county and state.

Many craft show promoters will have you fill out a tax form and collect taxes right at the show.

It's always a good idea to ask the show promoter if collecting sales tax is required and what forms are necessary.  The promoter will probably know if they are obeying all the laws that apply.  I would be wary of working with them if they seemed unsure or shady.  They should at least find out and let you know if they don't already know for sure.

Call the city and county offices where you will be making sales and ask about their tax rates and required permits (often know as special use permits) and licenses you will need to do business in their area.  Tell them what you are planning on selling as that usually makes a difference.

You will only need to call your state offices once to know what is required but will want to call the state offices of other states when considering sales in their areas as well.  Don't forget to ask about requirements for online sales tax collection.

Doing your research and collecting taxes from the customer now will prevent you from paying them and steep fines later.

I hope that this has been helpful.


Shasta McLaughlin
The Extravaganza Craft Productions
http://www.extravaganzacrafts.com