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Why are taxes frequently collected at fairs, festivals, flea markets, or craft shows?

Answer #401 -- ( Published 11/08/2005 09:37 AM | Updated 07/12/2017 10:39 AM )

Why are taxes frequently collected at fairs, festivals, flea markets, or craft shows?

Special events are a unique kind of business in which vendors sell items to the public at fairs, festivals, flea markets, or craft shows. Many times, the only fair and efficient way to collect the proper taxes is to have our collection agents personally register each vendor and collect taxes at the event. Our agents may collect taxes daily or at the end of an event to ensure that we have collected the tax due from out-of-state or transient merchants before an event has closed.

In addition, collecting tax at an event ensures that the tax is paid at the correct rate and that any local tax is returned to the correct unit of local government. The amount of tax due is based on the location of the event. The state sales tax, a portion of which is distributed to the municipality or county in which the event is located, is always due. In certain locations, other locally imposed taxes (e.g., mass transit and home rule tax) are also due. We collect both the state and local taxes and then return the local portions to the unit of local government where the sale was made.

Special events are a unique kind of business in which persons fro other communities or states sell items to the public at fairs, festivals, flea markets, or craft shows.  Many times, the only fair and efficient way to collect the proper taxes is to have our collection agents personally register each vendor and collect taxes at the event. 

Our agents may collect taxes daily or at the end of an event in order to ensure that we have collected the tax due from out-of-state or transient merchants before an event has closed.

In addition, collecting tax at an event ensures that the tax is paid at the correct rate and that any local tax is returned to the correct unit of local government.  The amount of tax due is based on the location of the event.  The state sales tax, which includes a local portion for the municipality or county in which the event is located, is always due.  In certain locations, other locally imposed taxes, (e.g., mass transit, county water commission, and home-rule tax) are also due.  We collect both the state and local taxes, then return the local portions to the unit of local government where the sale was made.

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