Visit the Special Event License web page for more information. A licensed organizer must maintain records regarding all taxes remitted to the organizer for each participating seller. The records must include:. Special Event Sales Tax. Quick Links. Apply for a Special Event License. How To File Online. Special Event Sales Tax Information. About Special Event Sales Tax. Special Event Organizers.
Frequently Asked Questions. What is a special event? Can I include my special event sales tax with the rest of my business' sales tax? How do I get a special event license? However, some online auction houses are considered marketplace facilitators, and therefore the retailer of the items you sell, and will collect and report the tax on those sales. You will be required to hold a seller's permit and report the tax if the online auction house is not considered a marketplace facilitator.
Crafts You are required to have a permit if you are selling, even temporarily, new or handcrafted items or used items you purchased for the purpose of reselling to others. As a seller at swap meets, flea markets and special events, you are required to provide specific information to the operator of the event. If You Need Help If at any time you need assistance with topics included in this guide — or with topics not included — feel free to contact us by telephone or email.
The sale of fireworks and Christmas trees. Your online sales of merchandise are generally taxable in California even when you sell through online auction houses such as eBay. You are required to have a permit if you are selling, even temporarily, new or handcrafted items or used items you purchased for the purpose of reselling to others. The vendor must, however, continue to separately state the tax from the sales price at the time of sale to the purchaser.
If the vendor absorbs all or any part of the tax on the sale, the vendor shall pay the tax with the return that covers the period in which the vendor makes the sale. The amount of tax due is determined by the sale price in relation to the statutorily imposed brackets. The amount of tax increases one cent from one bracket to the next with 6 cents due on each exact dollar.
This means that when the tax calculation results in an amount between two whole pennies, the tax is rounded off. The tax computation must be carried to the third decimal place, and the tax then must be rounded to a whole cent using a method that rounds up to the next cent whenever the third decimal place is greater than four, and rounds down whenever the third decimal place is less than or equal to four.
You must report the tax you charged on sales of alcoholic beverages separately from the tax imposed on sales of other items. The revised sales and use tax return will also have separate lines for reporting tax on purchases at each rate as well. This includes sales of beer, distilled spirits, and wine, as well as any beverage or cocktail that may contain a mixture of both alcoholic and non-alcoholic components, including an alcoholic mixed drink, a frozen alcoholic cocktail, an alcoholic coffee drink, and a gelatin shot containing an alcoholic beverage.
Effect on purchases by exempt organizations: Maryland sales and use tax exemptions apply to all purchases for use by the exempt organization, regardless of the applicable tax rate. For sales made between July 1, and June 30, , if your sales include alcoholic beverages as well as other items, you must apportion the charge for the mandatory gratuity between the two categories.
To make direct wine shipments to Maryland residents, the law requires that a wine manufacturer be issued a direct wine shipper permit and the manufacturer comply with existing tax laws, including the requirement to collect sales and use tax.
If the manufacturer imposes a separately stated shipping charge, that amount will not be subject to tax. An inbound freight charge is part of taxable price. If the inbound freight charge is imposed on the sale of an alcoholic beverage, then the vendor must collect tax on the price that includes the inbound freight charge, whether separately stated or not. If the basket includes non-taxable merchandise as well, and you allocate the sales price among the three categories of merchandise alcoholic beverages, taxable merchandise, non-taxable merchandise , then you may exclude the non-taxable items from the taxable price.
The caterer must then report and pay the tax to the Comptroller by the required due date. You must apportion your sales price between the taxable price of the alcoholic beverages and the taxable price of the food and non-alcoholic beverages and charge the tax accordingly.
That depends. This will depend on whether the charge for entry is truly an "admission" charge as opposed to being a charge for the sale of the wine. On the other hand, if everyone has to pay the admission in order to gain entry into the venue, regardless of whether they participate in the tastings or not, then the sales and use tax does not apply to the sale of admission tickets. However, depending on the jurisdiction, the gross receipts from the sale of the tickets may be subject to the admissions and amusements tax.
If the customer is not purchasing the growler, there is no sales tax on a previously purchased refillable container. You are considered to be the consumer of the food and drinks that you provide and you must pay any applicable sales and use tax on your cost of the food and beverage.
The gross receipts on your ticket sales may be subject to the admissions and amusement tax depending on where you are located. However, when calculating if a business meets the 10 percent threshold for a substantial grocery or market business, you may not include sales of single servings, heated or prepared food or sales to be consumed on the premises. A caterer serving food at a customer's premises must collect the tax on the food sold. A caterer must collect the tax in this situation even if the caterer also conducts a substantial grocery or market business.
Sales of food to patients in a hospital when the food charges are included in the regular room rate are exempt. Sales of food and beverages on vehicles operating in interstate commerce are exempt.
In addition, the tax does not apply to a sale of crabs for consumption off the premises where sold. Sales of seafood to be consumed off the premises where sold are also exempt if the seafood is not prepared for immediate consumption. For sales and use tax purposes, soft drinks, bottled water, alcoholic beverages, candy and confectionery are not "food.
Neither water nor ice is food, although they may be treated as food when sold as components of food. The tax does not apply to eligible food purchased with federal food stamps.
Food stamp eligible food encompasses everything that is considered food for sales and use tax purposes, plus soft drinks, candy, confectionery, water, ice and otherwise taxable and prepared foods. If a customer purchases both taxable and nontaxable food stamp eligible food with a combination of food stamps and cash, credit card or debit card, the vendor must apply the food stamps to the eligible taxable items first, and then any remaining food stamps to the eligible nontaxable items.
After application of the food stamps, the balance of the eligible taxable items paid for with cash, credit card, or debit card is subject to tax. Your sales and use tax registration number is an eight-digit number that has been assigned to your business. You'll find your registration number on each sales and use tax return we send you and on your sales and use tax license. You must clearly document the reason for all tax-exempt sales. Otherwise you will be held responsible for uncollected tax, plus penalty and interest.
You should establish procedures to obtain valid resale certificates at the point of sale, and review your files periodically for accuracy and completeness. You should keep resale certificates on file as part of your business records.
You must be able to match your sales records with the appropriate resale certificates for audit purposes. Retailers licensed and remitting taxes in other states may apply to the Maryland Comptroller's Office for a refund.
However, an out-of-state vendor who has been issued a temporary permit to collect the Maryland tax may use the number on that permit to make tax-free purchases for resale at the show for which the permit was issued. Temporary permits bear six-digit numbers and are issued by the comptroller's Special Events Section. If you frequently deal with the same supplier, you may provide that supplier with a blanket resale certificate stating that all purchases are for resale.
Then all you have to do is give the supplier your sales and use tax registration number. Exemption certificates are issued by the Comptroller of Maryland to qualifying nonprofit organizations and government agencies to make purchases for their own use. The exemption certificate is a wallet-sized card bearing the holder's eight-digit exemption number. Certificates issued to nonprofit organizations have a specific expiration date, presently September 30, for religious, educational and charitable organizations, cemeteries, credit unions, and volunteer fire companies or rescue squads and September 30, for certain veterans organizations and their auxiliaries and units.
Certificates issued to government agencies have no expiration date. Organizations and government agencies presenting exemption certificates are exempt from the sales and use tax on purchases of materials and supplies to carry out their work. On the other hand, a resale certificate allows a person to make tax-free purchases for resale, not for use.
Although there is no specific form for a resale certificate, it must include a signed statement that the purchase is intended for resale, the purchaser's name and address, and the purchaser's Maryland sales and use tax registration number.
In a typical transaction, you would sell merchandise to a vendor who is not registered to collect Maryland sales and use tax. The unregistered vendor asks you to deliver the merchandise to a customer in Maryland. In this case, you must: Require the vendor to obtain a Maryland sales and use tax license and provide a valid resale certificate; OR Charge the vendor the tax based on the amount of the sale. You are responsible for collecting or documenting the tax on your sale to the vendor.
Twice a year Maryland holds special shopping events when the state sales tax on certain purchases is waived. These events help consumers stretch their dollar just a bit more, and help business owners generate more foot traffic. Shop Maryland Energy takes place in the month of February for qualified Energy Star products or a solar water heater. The tax-free period for these products begins on the Saturday immediately preceding the third Monday in February.
Accessory items, except for backpacks, are not included. Unlike previous tax-free periods, businesses selling other items not eligible for inclusion in the tax-free week can participate in Shop Maryland. Under regulations dubbed Sellers Privilege, other merchandise besides apparel and backpacks can be sold tax free but with the retailer paying the sales tax. Unlike in previous tax-free periods, businesses selling other items not eligible for inclusion in the tax-free week can participate in Shop Maryland.
Legislation passed in , dubbed Sellers Privilege, allows other merchandise besides apparel to be sold tax free but with the retailer absorbing the sales tax.
A vendor may assume or absorb all or any part of the sales and use tax on a retail sale and pay that tax on behalf of the buyer. The vendor must, however, continue to separately state the tax from the sales price at the time of the sale to the purchaser. By law, you are required to make your business records available for inspection by an auditor from the Comptroller's Office at any time during business hours.
The burden of proof is on you to demonstrate that you collected and paid the sales and use tax correctly. Your records must adequately distinguish taxable sales and purchases from non-taxable sales and purchases. If you do not have adequate records, the Comptroller's Office may compute a liability by projection from available records, by a survey of similar businesses or on any other reasonable basis. You must keep all records pertaining to sales and purchases for four years. You should keep the kinds of general business records that are appropriate for your type of business.
These general business records might include a general ledger, subsidiary ledgers, journal entries, bank statements, check stubs, and federal and state income tax returns. An auditor must be able to follow the flow of each transaction and match up all documents pertaining to that transaction. Documents or books of records that are incomplete, missing or illegible are not adequate records. You will also need to keep, where appropriate:.
Reproductions of records made in the regular course of business, as well as computerized records are permissible if you follow certain guidelines.
Out-of-State-Deliveries You are not required to collect tax on articles that you have delivered to an address outside the state of Maryland if you have no reason to believe the articles are intended for use in Maryland. Your records should clearly state that an item was delivered out-of-state. A few large corporations have Direct Payment Permits, which authorize them to pay the tax directly to the comptroller. If you make a sale to one of these corporations, you must record the Direct Payment Permit number with your records of the sale.
The Maryland sales and use tax does not apply to sales of machinery and equipment used in production activities, sales of tangible personal property for consumption in production activities, or sales of tangible personal property for resale or incorporation as a material or part of other tangible personal property produced for sale.
Exempt activities Tax-exempt production activities include: Assembling, manufacturing, processing, or refining tangible personal property for sale or resale except for processing food or beverages by a food vendor ; Generating electricity for sale or for use in production activity; Establishing or maintaining clean rooms or clean zones required by federal laws pertaining to manufacturing drugs, medical devices, or biologics; Producing, maintaining, and repairing production machinery or equipment; Laundering, maintaining or preparing textiles in providing the taxable service of commercial cleaning or laundering of textiles for a buyer engaged in a business that requires this service on a recurring basis of a commercial cleaning or laundering of the textiles; Providing for the safety of employees, including safety glasses, hard hats and breathing apparatus; or, Providing for quality control.
Servicing, maintaining, or repairing tangible personal property other than production machinery or equipment, or providing for the health and comfort of employees are not production activities. Tax-exempt items include: any tangible personal property used directly and predominantly in a production activity in any stage of operation on the production activity site - from handling raw materials or components to moving finished product; foundations to support other machinery and equipment or an item required to conform to air or water pollution laws and normally considered part of real property; safety equipment used in production activity; quality control machinery and equipment used in a production activity site; equipment and supplies used to remove finished goods on a production activity site; machinery used to produce bituminous concrete; and certain specified equipment used in aluminum production.
0コメント