We were in Somerset NJ doing the Sugarloaf Craft Festival this past weekend (yes, yes, all the news was the storm -- people did come -- but not to buy -- it was painful for us).
The first day of the show - right when it opened, there were 'suits and skirt' walking around with a notebook. At first I thought it was a company that was trying to sell product. Later on I found out that it was the NJ Tax 'Police' - going to people who hadn't filled out their tax forms - demanding that if an exhibiter didn't hand over $200 in the upcomng 1/2 hour, all products would be confiscated. They went to our neighbor who sells hand-knitted baby clothing. Clothing is exempt from tax in NJ - but she had 6 dolls - selling at $20 -- tax on each $1.40 -- she told them that if she sold one a show, she was lucky - it just wasn't worth filing for $1.40 but if that's what they required she would put the dolls away. Another in the next aisle -- ran to the ATM -- we hadn't opened -- just minutes possibly -- they were there the entie morning - looking and charting. Luckily, Jay had filed -- sometimes he forgets because of his A.D.D. (and yes, he's on meds so this is as good as it's gonna get) -- even when I remind 100 times 'have you ...' -- so I felt fortunate that this time he had.
So take filling out tax forms seriously. NJ was serious. And who knows what other states sends 'suits and skirt' out to find those 'naughty' who hadn't filed yet..
Comments
Thanks for this post. I hope everyone is reading this post. Get your tax licenses folks, or you may be sorry down the line. Each state has its own system, but do not neglect this. I know people who have ignored this and can never go back to certain states or they'll face big penalties. The state's don't care how much money you make, even filing a $0 income report requires a report. We filed quarterly in MA for years because every now and then we did a show in that state. New York is like a bulldog, be careful there. NJ, as noted, ditto. Ohio requires them but the process is easy, nearly enlightened.
Most shows are pretty good about letting you know about state and even local tax requirements in the show literature. Though I can remember a third-rate show I did along Florida's Palm Coast a few years back that let us know only upon arrival that we had to walk over to the city tax office (conveniently located in the same shopping center as the show) to register for a one-event business license ($25). That should have been my first clue the show would bomb. It did--but at least I made enough to cover the license fee!
On this same note, if you do any business in Savannah (or at least the Riverfront events) be sure you have your Savannah Business License. They DO check!
I just did a small show in Tx and the local constable was there with a clipboard checking to see who was legal and who wasnt.. lucky for us we had just gotten our tax license and were able to show it. I did the same show last year and noone was checking to see who had it or who didnt. I would think there should be a better way for those who only do one or two shows a yearbut most states dont have one.. Ohio used to have a system where you could buy a temporary tax permit if you were doing less than 5 shows a year. You paid 5 bucks for it, filled it out had it at the show and after the show paid your money in 10 days. No quarterly or annual reports to mess with. It was quick and easy but I found out they stopped doing it
I have posted about this for years. I've been to shows in New Jersey where they threatened to confiscate inventory and vehicles unless the artist could come up with cash to cover non reported quarters. When I lived in New York and then Delaware, I completely stopped doing New Jersey shows because of this. And this goes back well over twenty years that the tax police have been doing this.
Larry Berman
http://BermanGraphics.com
412-401-8100