For those who sell: Tax ID

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

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from the mtas database

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

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

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