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chevy57red

Want to sell at a craft show... but...

chevy57red
12 years ago

Have been in contact with a gal that is helping set up a craft sale next summer near our hometown in MN. As I was reading the qualifications.. dang.. they want a person to fill out a state form which in MN is called ST199. Means that they want you to have a state license to sell, which means they want you to add on sales tax.. I do not know if i want to go to that extent. Is the first time I have heard of any craft sale in MN do that..and that is on top of a hefty charge of $35 for the booth rent!!

Any opinions?

Comments (6)

  • concretenprimroses
    12 years ago

    I went to a family wedding in Minneapolis 6 or 7 yrs ago and then up to the Boundary waters for kayaking. What a beautiful state you live in!

    $35 wouldn't be high for a well attended show if you did it around here, unless its a tiny space. Perhaps you could share with a friend. Does the license cost any thing? If not it might be ok. You can add the sales tax to your item cost, then at the end pay it on your total.

    The complication is that I think MN has both state and city sales taxes so it depends on where the sale is. And some states require you to show the buyer the price before sales tax, rather than just saying it is included in the price.

    I am in NH but if I ever sell in VT where the tax is 6% I would round up my price to an even number and then divide it by 1.06 to give me the amount of the tax.

    I wrote a rather complicated post on the subject which I have put the link to below. If you decide to do it and send me the info on what the tax is, whether your state requires you to show the buyer the price before taxes, and the prices YOU want to take home after taxes, I'd be glad to send you exact recommendations. Gotta put these dormant math skills to use!

    Good luck. What would you sell?

    Kathy

    Here is a link that might be useful: My complicated post about sales taxes.

  • jeannespines
    12 years ago

    Here in IA at craft shows you need a 'tax permit' ...I think you can buy just a temporary one ...I've had a permanent one for yrs. Yes, the state wants their share, too! ;-) $35 is probably avg here also...depends on the craft show ...all day, half a day, two days.

    And if I don't sell anything (not do craft shows) ...I still have to send in a form once a yr to the state. I also commented on Flowers post w/some thoughts. Good luck! Jeanne S.

  • toomuchglass
    12 years ago

    Some shows require a sellers permit - I guess they think they'll get all the "pro's" . In WI -- if you sell under $600 a year , it's considered a hobby . A seller's permit is great to have though . You can pick out a business name and buy wholesale ,plus, and you don't have to pay sales tax when you buy supplies. At the end of the year , we fill out a one page tax form . Sales minus expenses = what you owe. If you don't sell alot - the amount owed is hardly anything.

  • oldgraymare
    12 years ago

    My sister sells at craft shows in the Twin city area, She said Some operators do require a ST19, but she falls under the "occasional" seller! I found this on the MN web site

    Operators of selling events
    Before an operator of a county fair, craft show, art fair, flea market, trade show, or similar selling event can rent space to a person to sell at the event, the operator must have written documentation from the seller that they hold a valid sales tax registration, or a written statement from the seller that no taxable items are being sold. Form ST19, Operator Certificate of Compliance, is available for this purpose. You can find this form on our website at www.taxes.state.mn.us.
    Anyone who pays consideration of any kind to sell at such an event is considered to be in business and must collect sales tax on all retail sales of taxable items unless it falls under the "occasional sales" provision.
    Occasional sales provisions applicable at flea markets and similar events.
    The law allows a seller at a flea market or other similar event to qualify for the isolated and occasional sales exemption if all of the following are met:
    � The seller participates in only one event per calendar year that lasts no more than three days;
    � The seller makes sales of $500 or less during the calendar year; and
    � The seller provides a written statement to that effect, and includes the seller�s name, address, and telephone number.
    An organizer can accept a written statement from sellers who make isolated or occasional sales indicating that they meet the above-mentioned criteria. The isolated and occasional sales provision for businesses does not apply at these events.

    Hope that helps!

  • chevy57red
    Original Author
    12 years ago

    Thanks everyone..
    I have a good idea now of what is expected.. and it is sad that when the little guy wants to make a couple of dollars.. the gov decides they need a chunk of change..
    I only do maybe 1 or 2 very small sales and have only made a few dollars.. so am not getting rich!! In fact.. if I don't start selling a few things.. I will have my daughters shed full of glass!!

    Sheila

  • pennyhal
    12 years ago

    I'm in California. I have to have a State license. Once a year I pay online a 7 3/4% sales tax on what I have sold during the year. I also have to pay a city tax on anything I sell over a $1000 a year. Some shows require that I pay an entry fee...usually $35-$150...and some also require that I pay an additional 10% of what I sell. That is why you either see a lot of stuff from Mexico or China very cheap, or things that are hand crafted that are expensive.

    This will be the first year we will be selling an item that we have gotten from China in addtion to our hand crafted things. We have to sell something to make ends meet. Some shows monitor vendors and tell us upfront if they will allow resale of items. And that is ok as long as they make everyone follow the rule. I hate it when we only sell our handcrafted items and people are selling cheap stuff from out of the country.

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