Re: sales tax at Moscow Renaissance Fair

["david sarff" <davesway@hotmail.com>]

I question the tax this way:
Is tax being collected on the goods that the nonprofit vendors sell prier to 
reselling them.
If so then ... The goods will be taxed twice.

Dave


>From: Marc <cram3813@uidaho.edu>
>To: vision2020@moscow.com
>Subject: Re: sales tax at Moscow Renaissance Fair
>Date: Sun, 09 Apr 2000 13:09:58 -0700
>
> >The problem is that the sales tax is charged on the total sales, not just
> >the profit.  If the group sells $2000 worth of food at the fair, but paid
> >$1000 for the ingredients, it has earned $1000 for its program.  But with
> >the 5% sales tax charged on its $2000 worth of sales ($100),it actually 
>has
> >earned only $900.
>
>If the business itself was paying the tax, I would agree.  This is not an
>income tax but a tax on sales.  The customer pays the tax.  The business is
>not charging the tax--the state is.  The business merely collects it for
>the state. (And are not compensated for doing so, I must add.)  It is not
>considered part of the profit in any way.  It just flows through the
>business.  Ultimately the consumer will see higher prices and the booths
>will make the same as before.
>
>Marc
>
>
>

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