Sales Tax -- need advice... anyone else in KS?

CenterStageLori

We are so confused about sales tax! Our business is in Kansas and we have e-mailed the proper state agencies and the replies are less than helpful:rolleyes

We understand that we need to charge sales tax on things we sell straight out of our studio -- sitting fees, photo jewelry and the like. But what about Smugmug print sales? Do you mark up your photos to accomodate sales tax? Do you turn in sales tax on your Smugmug sales? It's all very confusing and we want to do the right thing but are having trouble getting anyone to just come out and say what the right thing is!

Help!

brandofamily

I'm not an accountant...I go see mine next saturday... but my understanding is that you pay tax on goods you sell (pics, jewelry) not services.
Smugmug does collect sales tax on picture sales. Check out the order (cart) page...

Andy

CenterStageLori wrote:

We are so confused about sales tax! Our business is in Kansas and we have e-mailed the proper state agencies and the replies are less than helpful

We understand that we need to charge sales tax on things we sell straight out of our studio -- sitting fees, photo jewelry and the like. But what about Smugmug print sales? Do you mark up your photos to accomodate sales tax? Do you turn in sales tax on your Smugmug sales? It's all very confusing and we want to do the right thing but are having trouble getting anyone to just come out and say what the right thing is!

Help!

No state sales taxes are due by you, we are the seller and we charge/collect sales taxes on sales made by buyers from the state of California.

Scott_Quier

CenterStageLori wrote:

We understand that we need to charge sales tax on things we sell straight out of our studio -- sitting fees, photo jewelry and the like.

Help!

Wow, that's rough. In VA, sales tax is levied on value of transfered goods, not services. So, when I charge a sitting fee, I charge for my services as a photographer, to press the button. I just happen to have a place where I find it convient to do the shutter presses.

When I offer albums, then I will have to start doing the sales tax thing. Yeah, I'm really looking forward to that!

CenterStageLori

Thanks, guys! It looks like we won't have to worry about out sales here, then.

And I agree that it seems odd that we have to charge tax on sitting fees, but that's how we are interpreting the regulations they are quoting us -- although they are a bit difficult to deciper.

Scott_Quier

CenterStageLori wrote:

Thanks, guys! It looks like we won't have to worry about out sales here, then.

And I agree that it seems odd that we have to charge tax on sitting fees, but that's how we are interpreting the regulations they are quoting us -- although they are a bit difficult to deciper.

Here's some unsolicited advice, prompted by your last sentence. Find a qualified CPA (I not one!!), build a relationship, starting with getting answers to the above implied question. It could very well be that you are incorrectly interpreting the state tax code. The time and money you invest in getting qualified advice will pay for itself in very short order.

CenterStageLori

True. I think that's a good idea, too. Thanks!

Art Scott

CenterStageLori wrote:

We are so confused about sales tax! Our business is in Kansas and we have e-mailed the proper state agencies and the replies are less than helpful

We understand that we need to charge sales tax on things we sell straight out of our studio -- sitting fees, photo jewelry and the like. But what about Smugmug print sales? Do you mark up your photos to accomodate sales tax? Do you turn in sales tax on your Smugmug sales? It's all very confusing and we want to do the right thing but are having trouble getting anyone to just come out and say what the right thing is!

Help!

Lori,
when I first started my first photo enity business in the very late '70s there was not a sales tax on anything that was not physical.....so if I booked a wedding and GAVE the B/G a GIFT of the proofs then there was no need to determine how much of my fee was to go toward the proof given to B/G....then in the early '80s that all changed and we had to charge tax for everything related to our work....Ks was one of the first to be on the charge tax for mail / internet based sales no mattter where the customer was....so far that has not been passed....

If you go the farmers markets and look a the prices most signs stated stae sales tax included in price and the city of wichita is screaming that they want to make vendors charge the state and city sales taxes.....this will just cut down on art fairs and the farmeres markets in the end.....

CenterStageLori

Thank you, Art!