Sales Tax Dilemma: Navigating National Booth Events

[esavvymom]

Two questions-
I have done lots of booth events, but the one I am working tomorrow is a national level show (Southern Women's Show). Apparently, it can have visitors from all over, including other states sometimes.

(1) My first and biggest question is pertaining to the sales tax. The group I am doing the booth with strongly suggest just doing Direct Shipping only- and I'm all for that. But the sales tax is based on where the item SHIPS. I will have no way of knowing what sales tax levels may be. In my own 3-county area apparently it can vary! Not to mention other states.

What do I do? Our rate is 6.75%. Do I charge that and for those that are CC payments, if they don't know their tax rate, just tell them it may vary slightly if the tax is different? For those who pay cash, I suppose I can just eat that cost. Not much I can really do after the fact.


(2) And do you guys ever take checks at an event like that? It wouldn't be cash or carry- so no product would be lost as long as I cash checks right away. Depending on what time, I could even cash checks Sunday night! (my bank is 7 days/ 7am-7pm...LOVE that).

 

[pcsharon1]

I always take checks - even at vendor booths. I would simply charge the average tax rate and let them know that for credit cards it may be adjusted slightly and I always round it up to the nearest even dollar amount (which will help offset your costs if there is a tax error.) I typically don't get a lot of orders at a booth. I always let people know I accept them, but I don't do a lot of cash and carry sales either, even when I have enough items to sell. I go for the leads. I had a booth today and I sold three items cash and carry and got one order but I now have five booking leads. Well worth my time!

 

[pchockeymom]

You could do a google search of "sales tax by state" and print out the tax chart. I did this to see if there is one- found one! Add the state tax plus the highest local tax rate (they have a range as some locales have higher tax rates). Then I would use these rate for the people you meet. Show them what you have so they can see you're not just pulling a rabbit out of your "chef's" hat. If they use a c.c. you can tell them it may vary slightly if you're wrong about their particular local tax and if they write a check you can tell them that if there is a difference (it would only be lower if you're adding the highest local tax rate) you will add the difference to the Round Up for the food bank (which will go to the customer's food bank since that's where the order will be shipped to).

Hope this makes sense

 

[esavvymom]

Thanks for the tips/ideas.
Not sure if the "sales-tax by state" chart will work though. Just looking at MY state, it says 4.75. HAHA. not. Most are 6.75 to 7.0 in my 3-county area. That wouldn't be very helpful for me, if the variance can be that great. But along those lines, I looked and found a sales tax chart BY COUNTY for my state. That's much closer to what I will need I think. The rates line up with what I looked up last night on PC.Yes- I know usually sales are not the top-thing at this booth, but according to the ladies who have done it years past that I am working with, they said it is NOT uncommon to get quite a few sales at this event. And they are putting the Mother's Day & Father's Day specials on display as well. Just wanted to be prepared. I'm working the last shift of the event, but it's Sunday afternoon (and Mother/Daughter day at the event). Hoping for a good return on investment

 

[Sheila]

I've just been asking people if they know their sales tax rate for their zip code. Most do. If not, I look it up. I have the luxury of having my cell as a wireless hot spot and will already have the lap top connected to internet & ready to look. I haven't had anyone give me a bad quote yet, but I'd probably just do a Consultant Gift if it's more or Round Up if they owe less.