Sales Tax @ Shows...

[andrealh1975]

When you do shows, how many of you price your items to "include" sales tax and how many just charge whatever the price is and add tax that way? For instance, if someone buys an $8 jar from me, I want to figure out is it better to just charge $8.50 and say tax is included or charge them the actual $8.00 and add the exact tax at the end. Now that I think about it, is that considered tax fraud?

[sudsnwicks]

I read somewhere that it is better to quote prices before tax.

(1) Sales tax varies from county to county within the same state. If you do craft shows in different towns, tax rates may differ, and it's a hassle having to reprice everything each time.

(2) The before tax prices are lower and feel cheaper to the customer. Once they have brought the item to you to pay, and you give them the final price with tax, they are already committed and aren't likely to change their mind at this point even when they're given a higher amount.

[Fern-Marie]

I don't think that it matters which way you do it but I would go with the higher amount and say nothing about taxes, myself.

When I go to shows, ppl are never charged the item plus tax...just a specific amount.

So, I would go with the $8.50 or whatever your final amount is that you have decided will cover any taxes you pay. It is more comfortable for the consumer, especially at shows where most vendors take in cash anyway.

[gerrie]

At shows I don't mention any thing about the tax, if someone asks then I tell them the tax is included in the price. Just makes it so much easier. At home parties I always let them know tax is included in the price.

I add enough to my prices to cover tax no matter what county I'm in. Sure, I may make a bit more or less depending on the tax rate in certain counties, but the hassle it saves me is worth it all, and it's never a big enough difference to even make me think about having seperate prices depending where I'm at.

[scentlady]

You can go either way as long as you keep records. I have done both but prefer to charge tax separately. I agree the lower price sounds better and I put plus tax on my prices so no one is surprised.

[Fern-Marie]

I never knew that the tax rates can vary by county. What an odd thing.

Here, 5% is the tax rate - the whole state. NH, ME, RI, I think CT...all have one set tax for sales.

That must make it incredibly difficult to set a price.

[Beth-VT]

It DOES matter how you do it.....if you get caught that is. You need to check with your Sec. of State's office or whomever to find out there requirements.

VT is a good example. We are NOT allowed to just roll it into our pricing w/o saying anything. If my pricing is adjusted to include sales tax, the original product price must be clearly posted for customers, and it must be it's own line item on any receipts.

So, my show prices are adjusted to include the "with tax" price (I round to the nearest quarter), but all my pricing signs state that tax is included, and I have a master price sheet at the checkout that is clearly visible stating product price without, and with the tax.

And yes, you need to be aware of varying tax rates within your own state and what you are required to collect. Townships can have different rates and you might have to collect more or less than you would at home.

[Di_in_AZ]

Beth is right, each state varies. I live in AZ and you can do it both ways, adding it in is called factoring and AZ actually gives you a chart with the number to multiply by to factor out the taxes; however, the guy who taught the tax seminar I attended said it varied by states and some states do not allow that.

[Scented]

FOr what it's worth, we see it both ways, but we tack it on at the end. Almost all the shows we were at included their sales tax forms in our packets.

[7Angela7]

Some shows here require that sales tax be charged, but sometimes they're not specific. I add it into the price, and have a sign that states sales tax is included in the price. Like Beth, I have a master list that shows the actual price, tax, then the price of the product (which matches the product price sign). For instance, a $10 container - the master list shows:

Container - $9.28

Tax - $0.72 (7.75%)

Total - $10.00

Every product that's sold is broken down like this, just in case anybody asks to see. My prices either end in quarter amounts or straight dollar amounts, so I only deal with bills & quarters. I find that this would be a lot simpler for me.

[andrealh1975]

Thanks all...Luckily MD only has one rate so I don't have to worry about the different county thing. I still don't know which I'll do, just wanted to see what others were doing. Thanks.