For those who sell: Tax ID

Info for those of you who sell your beautiful creations...

I was talking to a lady yesterday who sells her handmade jewelry at
craft shows and flea markets. She told me that she gets a lot of her
supplies at wholesale prices with her Tax ID number. She paid
$45/year for a "flea market sellers Tax ID" in Tennessee. Apparently,
you can get this at many flea markets. Some of you may be able to use
this....would be nice to buy at wholesale prices.

April, there are many forms of this--it varies from state to state. You can get
a permanent or temporary version in some states--if you are doing a one time
show/retail market venue in a state not your residence, for instance, you can
get the temporary version that allows you to do business at that show or for a
period of time (summer season, etc) and pay sales taxes to that state. My own
state, Colorado, charges $25 per year for a Tax ID number--and this requires me
to file sales tax info even if no retail sales are made. And this DOES get you
the ability to buy wholesale when minimums of the vendor are also met.
Sarajane

Sarajane's Polymer Clay Gallery
http://www.polyclay.com

view my auctions at:
http://www.polyclay.com/Collage/auction.htm

from the mtas database
http://www.mtas.utk.edu/knowledgebas...A?OpenDocument

"Pursuant to T.C.A. Section 67-6-220 "All dealers, not otherwise registered
pursuant to this chapter, who sell at flea markets shall register and pay
tax in one (1) of the following manners:
(1)(A) Persons engaging in the business of making retail sales at flea
markets may register and pay an annual registration fee of forty-five
dollars ($45). This registration shall be credited against that person's
actual annual sales tax liability. This registration shall be valid at any
location in the state during the period for which it is issued. (B) Should
any dealers tax liability exceed forty-five dollars ($45) then such dealer
shall file an annual return...(3)(c)(1) The flea market operator shall be
responsible for ensuring that all dealers operating at the operator's flea
market are properly registered with the department."

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"April" wrote in message
...
Info for those of you who sell your beautiful creations...

I was talking to a lady yesterday who sells her handmade jewelry at
craft shows and flea markets. She told me that she gets a lot of her
supplies at wholesale prices with her Tax ID number. She paid
$45/year for a "flea market sellers Tax ID" in Tennessee. Apparently,
you can get this at many flea markets. Some of you may be able to use
this....would be nice to buy at wholesale prices.

April wrote:

On Mon, 15 Sep 2003 13:59:37 GMT, Karin Cernik
wrote:

I imagine the laws are different by state, but I can't imagine having to
pay for your tax id number. You just file the paperwork with the state,
and there it is. Of course, then you can't hide your sales under the
covers anymore, they expect to receive their sales tax on a regular
basis (in Kansas, it depends on how much you make), and their income tax
on your profits, but you'd be doing that anyway, right??

Karin

Karin,

I don't sell my beadwork...I only do it for pleasure. But I thought
the information on Tax ID #s might be useful for some of those in the
group who do sell. It's a lot more complicated than I thought it was!
It's a good thing I'm NOT in business...I'd probably have to sell my
soul to the IRS! ;-)



I completely understand... :-)

In Kansas (again, states probably vary), you must pay sales tax on items
that you buy for personal use (when you buy wholesale, you don't pay
sales tax, since typically you are buying component parts to make into
something that you are going to sell, and you pay the sales tax on the
finished product. This is different, I believe, than the European VAT,
which I think is charged every step of the way.) So if you buy things
wholesale, and don't sell the resulting jewelry, or if you buy tools or
office supplies, the state still wants their tax. I doubt they collect
it very often, but it is there. :-)

It's been interesting to read about the 'special' id for flea markets.
I didn't know such a thing existed. I can see where it might simplify
things for people that are just wanting to do a limited amount of
selling.

Karin

Here in Alaska they just upped the fee for a business license from $50 to
$200 for 2 years. And of course you can always operate DBA using just your
name. That's the only requirement here because we have no state tax. The
Tax ID# then would be the federal tax ID, which could be your SSN.

Tina


"April" wrote in message
...
Info for those of you who sell your beautiful creations...

I was talking to a lady yesterday who sells her handmade jewelry at
craft shows and flea markets. She told me that she gets a lot of her
supplies at wholesale prices with her Tax ID number. She paid
$45/year for a "flea market sellers Tax ID" in Tennessee. Apparently,
you can get this at many flea markets. Some of you may be able to use
this....would be nice to buy at wholesale prices.

As Sarajane said, this varies in every state.

Here in Tennessee the "Flea Market" registration is just a way to avoid
having to file sales tax reports. The $45 is a credit against the sales tax
you owe, and you don't have to file any reports unless your sales tax
liability exceeds $45 in a year. I don't know if you get a "tax number"
with that or if you can use that registration in a certificate of resale.
(And you can do a $5 daily registration IIRC, or a monthly, or quarterly
registration.)

If you're in most parts of Tennessee, before you start selling stuff, you're
supposed to have a county (and city) business license, which does cost. If
you get a regular (as opposed to a flea market) state sales tax id, you have
to file sales tax returns, whether or not you sell anything, which is a
large pain.

Elise

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This is a post-only address.
Send replies to e_lewis AT bellsouth DOT net
(with the obvious corrections)
"Sjpolyclay" wrote in message
...
Calling it a "tax ID number" may be confusing some people, as it is not
called
that in every state, and other things are called that too....a tax ID #
can be
your employer ID number in some instances, but that's different in
different
places as well.
For information in YOUR state, call/contact the State Department of
Revenue and
ask what you need in the way of a license to make retail and wholesale
sales in
your area. I have to have a Sales Tax License in CO. When I lived in CA,
we had
a Resale License. In Ohio, I had a License as well---this is not free of
charge
in any of the states I have resided in, but it IS low cost (10--50
dollars,
average) and you can make up the difference on your first
wholesale-for-resale
purchases.
Sarajane

Sarajane's Polymer Clay Gallery
http://www.polyclay.com

view my auctions at:
http://www.polyclay.com/Collage/auction.htm