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The Magic Cafe Forum Index » » Tricky business » » Sales tax (0 Likes) Printer Friendly Version

trickychaz
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West Virginia
549 Posts

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Apparently you have to pay sales tax on your shows in West Virginia. Anyone else run into this?
Carducci
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Denver
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Quote:
On 2010-02-02 16:53, trickychaz wrote:
Apparently you have to pay sales tax on your shows in West Virginia.


Yes and no... Under WV tax law, you are considered an entertainer/artist and, as such, exempt from collecting and submitting sales tax if you're paid less than $3k for an event.

Disclaimer: I'm a magician, and not an accountant or tax attorney, but this is my summary of West Virginia Senate Bill 324, passed in 1997.
trickychaz
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West Virginia
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Quote:
On 2010-02-02 18:26, Carducci wrote:
Quote:
On 2010-02-02 16:53, trickychaz wrote:
Apparently you have to pay sales tax on your shows in West Virginia.


Yes and no... Under WV tax law, you are considered an entertainer/artist and, as such, exempt from collecting and submitting sales tax if you're paid less than $3k for an event.

Disclaimer: I'm a magician, and not an accountant or tax attorney, but this is my summary of West Virginia Senate Bill 324, passed in 1997.

Thanks Carducci
Blair Marshall
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Inner circle
Montreal, Canada
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It is always best to contact an accountant, or tax office in your area to ensure you are following the rules of your state/province. ie. interpretation of an event? is it a contract? is it a perfomance? is it a series of performances? If you are booked by a restaurant on an open contract and it runs several months (or years as was my case), is this considered "an event" or "a booking"?

Always best to check with the tax office, they may even have other information materials relating to running the business as an entertainer. I know we do here.

Blair
Skip Way
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The North Carolina legislature is now discussing a "sales tax" on services and labor such as entertainment, plumbing, auto repair, home repair, day care and so on. Naturally, lawyers and doctors are exempt...imagine that! I've avoided retail sales to stay clear of the sales tax bureaucracy. Ah well.
How you leave others feeling after an Experience with you becomes your Trademark.

Magic Youth Raleigh - RaleighMagicClub.org
JordanB
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dallas, tx
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From my experience, many states that impose a sales tax usually have some kind of exemption for "professional services". They usually define these in narrow terms in the legislation, but it usually includes doctors, lawyers, and CPA's.

For the West Virigina Law, see West Virigina Code Sec.11-15-9(40)

Here's a link:
http://www.legis.state.wv.us/WVCODE/Chap......=9#15#15

Edit: If your state is considering imposing a tax, be sure to write, call, and visit with your state representatives. See if you can get an exemption for performing artists. Get local magic club members and performers to do the same.
trickychaz
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West Virginia
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Just filed my business liscence today. I am not exempt from paying sales tax as a magician unless the organziation is sales tax exempt. In which case I have to request their tax exempt form and keep in on file in my office. Each invoice has to show a. tax included b. price + sales tax

I have to file the sales tax quarterly, and if it is late, there are a ton of fees attached! I also had to file a liscence with the city office to run an office from my home. I am allowed 100 square feet of office space and it specifically has to be used for office.
Al Angello
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Eternal Order
Collegeville, Pa. USA
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When I had my Pennsylvania tax number the tax man knew about many of my shows and asked me how many items I sold at each show. I sent them back their tax number, and they gave me back my privacy. I am quite happy with this arrangment.
Al Angello The Comic Juggler/Magician
http://www.juggleral.com
http://home.comcast.net/~juggleral/
"Footprints on your ceiling are almost gone"
nucinud
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New York, New York
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Every state has different rules about sales tax
"We are what we pretend to be" Kurt Vonnegut, jr.



Now U C It Now U Don't

Harry Mandel

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leapinglizards
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Chaz... you might wish to check this out. Publication from your state, specifically about expemption for performers:

http://www.state.wv.us/taxrev/taxdoc/tsd400.pdf
Leaping Lizards!!! Who knew it was possible.
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