AKICILJ: Sales tax

[carbonel]

If I sell something in Wisconsin that in Wisconsin is taxable, but in Minnesota (where I am rezident) is not, do I need to collect sales tax?

If so, where would said sales tax be paid to.

I'm selling my handspun yarn at Wiscon, but in Minnesota, clothing (and by extension, yarn) is not taxable.

Comments

[guppiecat]

Tax is derived from the receiver, so if you exchange goods in Wisconsin, it's taxable.

Tax is paid to the county the sale took place in. Each county has a website that can be very hard to find. Once you fill out the paperwork and pay the tax, you have to fill out the paperwork and pay the tax every quarter thereafter. Even if you sell $0, you have to fill out the paperwork for $0 and file it. (You don't need to write a check for $0.)

You could also just ignore the issue like most people do.

[timill]

http://www.revenue.wi.gov/eserv/index.html#bus may well help.

[(Anonymous)]

If you don't have a resale license (and if none is required by the Wiscon for you to sell your yarn) then no one will ever know. If you have a license and the con requires a copy, then it may be on record that you were a vendor in Wisconsin. Wisconsin still may never notice, but technically you would owe Wisconsin for anything sold.

One reply here says you would owe the county you were in. Technically, yes, that is true, but you always pay the state, NOT the county (none of the counties I've ever sold in have forms separate from the state,) every time. (Wisconsin may be different.) The form I fill out is different for each state but the check is always made to the state but some make you allocate the county on the form and how much you made in that county and then they allocate whatever tiny percent of state sales taxes goes to that county. Some cities also require a special temp. license and I pay them separately whatever they require (some require a license fee, others give the license for free but require a tax allocation on a special non-state form for that city,) but that is for a city, not a county.

If you are not truly in business and it's just a hobby with cash under-the-table sales only I would not worry about it. If you don't have a business resale license for Wisconsin, I'd lose zero sleep over it.