[Mid] [Merchants] Pennsic tax stuff

Hey out there! Any other Pennsic vendors receive the latest letter from Cindy
Cooper-Tracy where it indicates the PA tax laws have changed?

YOWSER, what a nightmare!

Now we each have to apply for our own transient vendor permits with the PA
Dept. of Revenue. There is a multi-page form, and some important information
we will need is missing...

I have already fired off a fax to Cindy, with another copy of the same letter
going to the PA Dept. of Revenue, New Castle office.

What we now have to do is apply for our own tax license. What Cindy did not
provide is the "licensed promoter number" that is asked for on the form.
Without this number, vendors have to submit a $500 (yes, five hundred) deposit
with this application.

This is in the "Transient Vendor" section of the ap, on the second page. What
it appears to me to be is an attempt for transient vendors to sell only with
licensed promoters...and as far as I know, Cooper's Lake has never been
licensed...so this very important piece of information is missing. Even if
they _are_ licensed, that information was not included in the packet I
received.

In addition, even transient vendors who sell for only Pennsic have to file PA
taxes twice a year. Not just the one time, by the end of August, as in past
years. Now the taxes we collect at Pennsic in August must be paid by February
20, 1998.

ALSO. MONIES COLLECTED AS SALES TAX CANNOT LEAVE THE STATE OF PENNSYLVANIA
UNTIL THEY ARE PAID TO THE DEPT. OF REVENUE. This means vendors will need to
establish bank accounts in Pennsylvania and will have to be sure to get that
money into the bank before they leave for home. HOW this will be done is
anyone's guess.

This information is off page three of the application.

I am forming contingency plans to accomodate this, and have thought of ideas
to suggest, including having a tax collector come onsite in person to handle
the taxes on Saturday before we have to stop selling. Chances of the state
doing this for us are probably very slim, so we will need to put our heads
together and come up with some creative ways of handling this, after the
initial screamfest of "WHAT'S GOING ON!!!!" that is bound to happen.

While this is very very important news for all Pennsic vendors, it is
ultimately important to realize several points:

This is NOT the Coopers' fault. It is not a way for them to milk the merchants
or SCA people unduly. These are state tax guidelines.

Technically, all transient vendors are required to file taxes in every state
in which they have sales, not just their own state. It is within the rights
and best interests of each state to enforce the rules as they feel they must
to ensure that they get their money. Regardless of whether or not we agree
with the efficiency of this bureaucratic paperwork nightmare, we have to live
with it.

DON'T yell at Cindy Cooper-Tracy. Think for a minute of being in her shoes, of
having to tell 500+ vendors this information. Yell at your SO for awhile, and
then write a letter to Cindy and ask her questions. Politely.

DON'T yell at the PA tax authorities. Be nice to the tax people. They are
bigger than we are. Go ahead and ask questions, but be nice.

Crying that moving Pennsic from Cooper's Lake would solve this problem is
WRONG. No matter where we go, we can be subjected to the same kind of tax
guidelines. The more legitimate the SCA gets, the more we will have to conform
to government rules and regulations. It is a price we must pay, and we are
long overdue for this. It's surprising, but not unexpected, or it shouldn't
be.

Yes, this can be tough on many of us. Who has a spare $500 floating around? I
sure don't...

When I get home tonight, I will post to this forum the questions I asked Cindy
and the PA Dept. of Revenue so you may see what has been already asked. When I
get answers, I will share them with you and cite the source of my response.

Please share this information on other forums as you like. I'm sure this will
be plenty of fuel for the fire.

ONE MORE POINT: Figure on it taking 6 weeks to get your sales tax license. It
may take less time, but don't count on it. If you apply now and get your tax
license before June 30, you will have to file a PA tax return, even though you
will not be selling until August! That first half tax return must be filed by
sometime in August, I think the 20th. Even if you fill a card with zeroes, you
must file, just like for your federal income taxes.

Take deep breaths and STAY CALM. Things will work out.

Siobhan
From: "judith a kirk" <LBTJAK1%WADPT5@ADMIN.WMICH.EDU>
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Received on Thu May 29 11:11:51 1997