A question I get asked a lot is “Do I have to collect sales tax at every craft show I attend?”
The answer is YES!
Every state where I attend an art or craft show requires that I collect sales tax, and then pay the tax to the state. Each state has it’s own rules, some require that you get a sales tax number to collect the tax, and others simply send you a form and you report how much gross sales you had, and then you pay the appropriate sales tax. If a particular state requires that you get a sales tax number, they may require you to file quarterly or semi-annual sales reports, even if you did not have any sales for that particular time period. This can be a daunting task especially if you do a lot of shows in many different states. If you have any questions about this, check with the promoter of the show, and they will be able to answer your questions about collecting taxes. Many promoters give the attendees names to the state so they can make sure that taxes are being collected!
It is not worth the fine if you get caught, so do the right thing and collect the tax and pay it!