Call for Artists, Making Money at Juried Art Fairs, Craft Shows and Festivals
I have been doing the Golden Fine Arts for over 10 years and always paid my sales tax at the end of the show. It was never a big deal and no city licensing was required. The only problem I ever encountered was one year I was told to go to the wrong place to pay by a volunteer. Now because some artists have skipped town with out paying, paperwork for a temporary license and a $50 deposit needs to be paid up front before the show. And to add insult to injury, the town Tax Auditor refers to participants in this upscale show as 'VENDORS". Thanks to all you schmucks who don't pay the sales tax.
It always seem like it is a few who ruin it for the rest of us.
Paying the $50 upfront deposit has been part of the Denver Cherry Creek Art Festival since the beginning. The smaller shows must be waking up.
?? There isn't a $50.00 upfront deposit required at Cherry Creek. Just pay for a State and City license and pay the sales tax before the last day of the month.
What is the $50 deposit applied towards? I wonder if it is applied towards the license fees and if it is also applied towards any taxes would it be deducted from any taxes that you pay after a show?
Most licenses can be obtained prior to a show online...however taxes cannot be calculated until after you finish the last day of a show...
Colorado has strict regulations regarding sales tax. I've done shows in numerous states, and Colorado tops the list of tax tax tax and it gripes me. Alabama is similar. Florida on the other hand is a piece of cake. Funny thing, Tennessee sent me a tax due statement after not filing, and I didn't even have a tax license for the state. They got my info from Chattanooga's 4Bridges show where I had to cancel due to my wife nearly dying in Macon, GA the week prior to the show. I called the tax autority in Tenn. and they immediately erased the charge. But still, I had to take action and spend time doing it because the show informed the authority that we would be there. A license wasn't required to do the show, either.
I don't know, Richard. I don't think you can blame the artists. Just like Connie mentioned, other shows in the area already charge the fees.
There are many artists commenting on seveal blogs about how a show, or shows were so down in terms of sales... and even of some shows where they zeroed out completely. If you have to pay an additional $50 tax deposit and then zero out it would be interresting to see how willing and how quickly a city or state would refund any amounts due from the deposit.
States will pay it back in a timely manner. We've had refunds given and all were given within a few weeks of notifying them we needed it. The problem is there's still work to do to get the refund, and that's tedious as Connie states below.
Sales tax, as we all know, is different state by state. We live in Michigan and had our state sales tax on file, mostly I believe you can sale through most Michigan events with no one asking for sales tax. At Ann Arbor though usually the tax collectors show up and they want payment now (unless you have their state sales tax license as we did).
New York State and New Jersey can be onerous. Be careful there.
Illinois pretty straightforward. Ohio - easy and fair. Some states want payment after each show and the best ones only request a yearly filing. Keeping it straight is important and tedious. Does anyone have a system they use?
My system is to pay the sales tax within a week of leaving an event if I wasn't returning to the state for the rest of the tour or year. For Florida I paid semi-annual since they allowed me to be a seasonal vendor with that twice-a-year status. Some states don't require a permit if the vendor will be their only once or twice a year. I like that. It can be a pain to keep up with this stuff. But it's necessary. So keep a calendar and when you sign up for a state, write the DEADLINE TO FILE in your calendar so you'll remind yourself to do it.
I personally like it when they collect the sales tax at the end of each show. Doing it this way completes the entire process for that show. It is not something I have to deal with when I need to focus all of my time and thoughts on all that I have to do to prepare for the next show.
Some cities such as New Orleans are a pain in the ass. I got an occupational license from New Orleans (couldn't do it online and had to drive 70 miles just to get it) and I only do one or 2 shows there during the year...BUT every single month they send me a form to complete even when I do no shows that month. You would think annually od semi-annually would make more sense (it does make more sense but they don't do it)...
Government? Making sense?