Call for Artists, Making Money at Juried Art Fairs, Craft Shows and Festivals
Anyone else concerned about this legislation that's making it's way through Congress? Reporting taxes for all online sales? For the last few years we've had 25-50 sales a year that are outside of the normal states where we participate in shows and already have the licenses and know what we need to do for sales tax reporting. This legislation concerns me, I can't imagine the time and effort it's going to take to deal with those occasional sales to states that we ship 1 or 2 items a year to.
I know several artists in our area have sent emails to our state senators, message seems to be falling on deaf ears. Return message just indicate that once again politicians really aren't listening to artists and sole proprietorships.
Anyone else contacted their senators or congressmen? Any better responses?
There will be an exemption for business with less than a certain dollar amount of sales per year. The last I heard, this cut off would be $1 million a year, but I don't know what the final threshold will be in the legislation.
Also, from what I understand, you would pay the sales tax to the state you were selling from, not the state you are selling to. But as stated before us artists will most likely fall under the threshold for having to worry about it.
The big stink about the whole legislation is the fact that the seller would have to remit the tax to the state where the buyer is.
I've read there are over 4,000 different entities we would have to figure out. In New York alone, each county has their own sales tax in addition to the 7% state sales tax. Here in Vermont, the sales tax is 6%. But 3 towns have an additional 1% added on. And we would have to collect 7% for people living in those towns.
There is a good chance that the million dollar threshold will stand, but there's a greater chance the House will kill it altogether.
If neither happens, internet marketing by small and micro businesses like us will cease to exist.
That could mean bye bye Ebay.