Hello all.
I am getting ready to start selling in Florida. I've heard of several different ways to approach licensing for taxing purposes... I live in County restrictions and was told to purchase an occupational license (now called a "buisness tax receipt") which would allow me to attend any art fair ONLY in Seminole County, FL. However, I will be traveling a lot to different art shows throughout Florida. How do you approach this? do you purchase a buisness tax receipt for each city/county you go to??
Any advice is appreciated.
Thank you!
Replies
I have a similar question. I am Canadian and I live in Canada. I am trying to register for a show in Orlando in July but they are asking me for my sellers permit number.
For some reason I can't find any information on this subject online.
Where do i get that permit? On the Florida revenue website, it asks for the state your business is registered.
Thanks!
Kim
Call the FLA DOR at the number listed on the website and speak with someone. Some things are just tough to work out online, and the FLA DOR site is not, sadly, very user friendly. I have found them to be quite friendly over the phone, however.
Thank you all. Very usefull information!
If you only do a couple shows in Florida per year, chances are the show will give you a form that you can use to report sales tax directly and pay with a check. If you do more than a few, and sell to Floridians from out of state as well, you should register for a sales tax license with the DOR and pay your taxes quarterly. They'll issue a coupon book that you use each time you send them collected sales taxes.
In the eight years I've been doing shows in Florida (I'm an out-of-state vendor) I've had a tax license, remit quarterly and have had no real issues doing so. I have not needed an occupational license as an out-of-state vendor as I don't reside in any of the counties.
When you sell from out-of-state, you still need to collect the base rate for Florida and remit it to the DOR at specified intervals. This is because you have "nexus" in that state, ie, you sell from a physical retail location at some point during the year (an art show). If you never physically did a show in Florida, you wouldn't have to collect the sales tax. This is generally true for most states that you are a non-resident. If you physically do a show in the state, you have to collect and remit the tax.
I should add that even if you're out of state, when you sell in-state, you collect the additional discretionary tax for the county/city. Shows will let you know what rate you should use.
Excellent response, Jim...thanks for posting it!
I took so long to edit my reply above that the webserver gakked on my changes. Let me try again:
Teofana: Since I'm a FL resident and also not an accountant, I'm a bad person to ask about requirements for out of staters :-) : You should call the FL dept of revenue (there's an 800 number on the website) and ask them about how you pay the state sales tax. I think, but am not certain, that you will still file the same DR-50 form as in-state residents. Call, and they'll tell you.
Maxine: Shows take the sales tax and reporting requirements seriously, as they should. Most shows will state on their application that artists are responsible for sales tax reporting. Some will go farther, and provide you with a link to the state tax authority or a phone number to call. Some will include a state tax form in their acceptance packet.
Some states (for example, NJ) require out-of-staters to register, then report sales activity and pay taxes (if due) regularly, even if the artist visits the state only for one show. (To cease that requirement, the business must declare that it's no longer doing business in the state. Usually there's a declaration form for that purpose on the back of the tax license you're sent when you register.)
Other states (like PA and MD) issue a "temporary vendor license" for a set period of time, often 30 or 60 days. This gets you registered with the state so you can do several shows on the same license. When you're done, you submit your sales report and taxes collected, and then you're done until the next time you visit. There's no ongoing reporting requirement.
As for having to get a separate occupational license for each county you do business with, I've only had to do that once in 5 years on the circuit. (It was a highly irritating requirement imposed by show organizers that frankly, didn't know what they were doing.) I've never promoted a show, so my guess here could be wrong: But my guess is that among the fees the promoters pay is an umbrella "occupational license fee" that covers all the exhibiting artists.
Best advice I can give you is: 1) Call and ask; 2) Keep good records of sales in each state; 3) Follow their rules to avoid spending extra money on late filing fees and penalties; 4) Check any uncertainties with the state in question, and with your accountant.
Florida's late fee is $50. Reports are due the 20th of the month following the reporting cycle.
This is really useful information. But what if you are resident of another state - I live in Alabama, and I want to sell at a Florida market? What kind of licence do you need to have?
As I know, for the art/crafts markets here in AL you need to have a county issued permit for the event, unless you have a merchant permit. Still, if your permit is for another county, you will need to buy one.
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