Some craft show vendors have the sales tax built into the price so that they don’t lose that “yard sale” appeal. However, believe it or not, some states make this practice illegal because it gives an unfair advantage to the seller. If you want some specific advice about your situation, you can drop me an e-mail at my website. But the free advice is to contact your state revenue department with an anonymous question — You don’t need to tell them who you are. Once you have all the necessary information you can make the informed choice as what you need to do for your situation.

For a quick primer, check out this prior hobby post.

For more on related deductions, check out this post.

But kudos for Kelly for giving the right advice out here. Sales tax is *very* state specific. I’ve been working in the sales tax area for over 10 years and what works for one industry in one state, may not work in the same industry in another state. My advice to anyone intending to sell something on an ongoing basis — check with a local tax professional first. Telling the tax authority that you didn’t know that the 1,500 scarves you sold last year were taxable usually doesn’t relieve you of the obligation to collect the tax. However, if there is an obligation for you to collect the tax and you don’t, you will probably have to pay for it out of your own pocket.