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State specific licensing and tax info

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Here's Michigan's Regs. No sales tax, no license, no fees. The sales tax license is free, but only po is taxed, not bulk items.

Philo

So would I need a sales Tax ID if I am only selling Bulk?

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So would I need a sales Tax ID if I am only selling Bulk?

Well today I spoke with a very nice lady today, at The Michigan Department of Treasury, If you are selling Bulk Candy you DO need a Sales Tax License but you are exempt from all sales tax... kind of funny but I guess its their way of knowing your business and its representation. When you get the forms every so often for taxes... uhh .... you simply fill in 0 and send it for I believe 36 cents now..Postage

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Can anyone help me with this. Looking for licensing and fees for my area but am confused about the underline part. thanks.

E.5 Vending Machine

Fee set by local health dept.

A self-service device offered for public use that, upon activation by a coin, token, card, key, or paper currency, dispenses unit servicing of food or beverages without the necessity of replenishing the device between each vending operation. Vending machine does not include any of the following:

A device that dispenses only bottled or canned soft drinks; other packaged nonperishable foods or beverages; or bulk ball gum, nuts, and panned candies.

A water-dispensing machine that is registered by the Michigan Dept. of Agriculture.

Do I need to get inspected by the health inspector?

On the same page it reads this..

Do I require a plan review prior to licensing?

Fixed establishments, mobile units, vending machine locations or special transitory food units, if new, require a plan review prior to licensing. Plan reviews can be requested through the local county health department. Temporary Food Service licenses require an on-site inspection by local county health departments once the establishment is ready to operate so applications should be made at least 30 days prior to the event. Local county health departments will issue the actual operating permit at the time of inspection.

Page Links:

http://www.michigan.gov/mda/0,1607,7-125-1569_16958_16977-174008--,00.html

http://www.michigan.gov/documents/MDA_FS_license_application_master_81396_7.pdf

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Guest ontheballvending

This information is priceless.  Everyone needs to read this soon.    Be Prepared.

Thank you very much for this information.  Keep em coming.

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INDIANA

INFORMATION BULLETIN #45

SALES TAX

DECEMBER 2002

(Replaces Information Bulletin #45 dated December, 1991)

DISCLAIMER: Informational bulletins are intended to provide nontechnical

assistance to the general public. Every attempt is made to

provide information that is consistent with the appropriate

statutes, rules and court decisions. Any information that is not

consistent with the law, regulations or court decisions is not

binding on either the Department or the taxpayer. Therefore,

the information provided herein should serve only as a

foundation for further investigation and study of the current

law and procedures related to the subject matter covered

herein.

SUBJECT: Vending Machines and Other Food Holding Units

REFERENCE: IC 6-2.5-5-20

I. Vending Machine Sales

A vending machine is a mechanical device that dispenses items for either

money or tokens. As a general rule, sales tax must be collected on sales

made from a vending machine, including sales of food (fruit, sandwiches, etc.)

and beverages.

Because of the nature of vending machine sales, the sales tax due cannot be

separately stated on a receipt. A person responsible for collecting sales tax

on vending machine sales must post a sign on the vending machine stating

that sales tax is included in the price.

If no sign is posted, the Department will assume that the price of the item

does not include tax. Thus, the Department will expect the responsible person

to remit sales tax on the gross sales from the machine.

If a sign is posted on the machine, the gross receipts subject to tax will be

calculated. The gross receipts subject to tax equals the taxable gross receipts

from vending machine sales divided by one (1) plus the tax rate.

EXAMPLE:

Vendor A owns and operates fifteen (15) vending machines. Vendor A does

not have signs stating that the tax is included in the price of the items on five

(5) machines, but does have signs on ten (10) machines. The total taxable

sales from each machine is two hundred ($200.00) per month. Because

Vendor A does not post signs on five (5) of the machines, the Department will

assume that Vendor A collected tax on the total gross receipts of the five (5)

machines. For the remaining ten machines, the amount subject to tax is equal

to $2,000 divided by one plus the current tax rate. To calculate the tax due,

the gross sales subject to tax must be multiplied by the current tax rate.

II. Vending Machine Sales Not Subject to Sales Tax

Sales of tangible personal property for eight cents ($.08) or less are not

subject to sales tax. Vending machine sales of items for eight cents ($.08) or

less are thus not taxable.

Certain vending machine sales could qualify as exempt sales because of the

tax exempt status of the persons or organizations who make the sales. For

example, if an elementary school sells food through a vending machine, the

food sales could qualify as exempt school meals. There is a specific

exemption from sales tax for school meals. Vending machine sales of food by

an elementary or secondary school are exempt from sales tax regardless of

who makes the sales as long as the sales are only made to students or school

employees. (See Sales Tax Information Bulletin #32)

A state operated correctional facility or city/county jail could make exempt

sales from a vending machine if the vending machine sales were limited to

detainees and employees. The sale by the correctional facility or jail is exempt

because selling food or other items to detainees furthers the governmental

purpose of the facility or jail. Vending machine sales to employees furthers a

governmental purpose because keeping staff on-site contributes to the

efficient operation of the facility.

Items sold by the State of Indiana, the federal government or any Indiana

political subdivision must be purchased for resale by the exempt entity and the

exempt entity must actually sell the item. Vending machine sales from a

machine located in a jail or on a federal installation that are made by a person

other than the jail or the federal government are taxable.

III. Purchases of Vending Machines

Generally, the purchase of a vending machine is taxable. A vending machine

that actually produces a product for resale is not taxable because the vending

machine is directly used in manufacturing. A vending machine would also be

exempt if purchased by schools to serve school meals, a jail to provide

service to detainees or the federal government.

IV. Other Food Holding Units

Sales from any device or equipment other than a vending machine, such as

honor boxes, follow the general rules for any sales of property. Tax should be

collected on taxable food items, such as candy and confectionery, sold from

a cardboard honor box. Tax should also be collected on items, such as fruit

and cookies, because it is for immediate consumption.

The method used for determining tax on vending machine sales may also be

used to determine the amount subject to tax on sales from honor boxes or

similar devices. Honor boxes must have a sign indicating that tax is included

to avoid the requirement to remit tax on the gross taxable sales from honor

boxes.

http://www.in.gov/dor/reference/files/sib45.pdf

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Many states have recognized the special needs and problems of our industry and have enacted exemptions or reduced charges for sales through bulk vending machines. Since bulk vending represents less than 1% of the entire vending industry, most legislators have been sympathetic and helpful. For example, New York, Texas and Kentucky exempt all sales at 50¢ or less. California has a 25¢ exemption.

Attached is a list of states that have enacted exemptions or reduced charges...

This is wonderful news, I have been going over everything I can get my hands on so to speak to find out the requirements for NY

THANKS

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I've been looking in NH and can't actually find any requirements. It appears it maybe handled at a town level.

Ray

Edited by Team Mass

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I went through the list and saw that Washington is not in there. I am having a real hard time finding tax information.

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I went through the list and saw that Washington is not in there. I am having a real hard time finding tax information.

I assumed you meant WA the state and not D.C.........

If so, here's some info I found online:

Tax info

Good page to find out if you need to pay sales tax on vending sales.

You can also register for sales tax reporting through the links here.

Licensing info

Click on the "Get a Business License guide online" link and key in "vending".

Should get all kinds of good info there.

Go to the homepage to the website I've linked to above.

It should give you lots of help for your start-up.

Good luck.

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Link for Illinois appears to be broken. Would like a link for Illinois been a bit busy and hard to find on my own.

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Did you ever find out the license requirements or tax requirements for illinois? I have searched vendiscuss and cannot find a link that states exactly what illinois requirements are

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Alabama - To do business as a bulk vendor, legally, the requirements are as follows;

  • State tax ID & State business license
  • County tax ID & County business license
  • Some cities want you to have licensing, so those would need to be checked individually but I have been informed by some other long time bulk vendors from the area, that it is very rare for a city to enforce licensing laws on bulk vendors.

  • State tax for bulk sales is 3%
  • County tax for bulk sales is variable by county but I know Baldwin county is 3%

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I cannot find a thing about permits or licenses for bulk vending in Georgia!!! Does anyone here have any info or can at least point my in the right direction??

Thanks

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Same as simple southern. I am looking to get started in GA, and am unable to find much information.

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I searched this thread and couldn't find any information on North Carolina. Does anyone know where to find the regulatory requirements for NC? The state website is about as clear as mud...

 

Thanks!!

Jennifer

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NEVADA

In Nevada, at the state level you need a business license from the Secretary of State and to register with the Department of Taxation.

The business license fee is $200 per year, however if you are running a home-based business as a sole proprietor and net less than 66 2/3 percent of the average annual wage from the previous calendar year, you are exempt:

http://www.nvsos.gov/index.aspx?page=273#383 

You still need to submit the application which has an area for the exemption code.  You can file online here:

http://www.nvsos.gov/index.aspx?page=267

Register with the Department of Taxation at https://www.nevadatax.nv.gov/web/.  If you are only selling food, you only need a consumer use permit, no fee.  "Food sold through vending machines", "soda", and "candy" are specifically exempt from sales tax as per the Nevada Taxability Matrix here: 

http://tax.state.nv.us/documents/SST%20-%20Nevada's%20Taxability%20Matrix%20as%20of%20July%202009%20new.pdf

If you are selling toys or other "non-food" items, you'll need to pay sales tax (8.10%) and get a sales tax permit.  Fee is $15 plus a minimum $100 security deposit.

CLARK COUNTY

Fictitious Firm Name - $20 - http://www.accessclarkcounty.com/depts/clerk/pages/ffn.aspx

County Business License - http://www.accessclarkcounty.com/depts/business_license/pages/index.aspx

$45 application fee and $200 initial license fee, may be pro-rated based on when in their cycle you apply.  Renewable semi-annually, fee is based on gross sales according to the schedule here:

http://search.municode.com/html/16214/level2/T6_C6.12.html#T6_C6.12_6.12.995

If you are running from home you'll need current planning to sign off on the applciation.  You'll also need to visit or call the Nevada Dairy Commission to get an exemption letter stating you don't need a dairy license, unless of course you'll be selling iced cream or milk products.  Just start on the business license page and you can print out a checklist of everything you'll need.

 

 

Okay, I am so new to this site, but I have wanted a vending machine since I was about 4. I am 28 years old now and inheirted some money.  I would love to invent in a vending machine.  So, I live in Clark County.  Does that mean I have to do both, the NV Section and the clark county section?  The vending machine I am buying will have a credit card reader and will sell chips, pastries, pretzels, etc. I know I need a sales tax permit but do I need a business liscense as well? Do I claim all my earnings with the IRS on my taxes and do I have to pay fee's to visa/mastercard for having the card reader put on my vending machine.  It's only 450 to add the card reader but most people don't carry cash in my town.  So I figured with the credit card reader, I could maximize my profits.  Like I said, I am new to the site and a new vending machine owner and don't want to jump into something head first.  I am trying to do my research and get all the facts before I spend $4600 on my dream. 

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Getting a new machine is a big mistake

I can get a used refurbished set of soda and snack for about 2000 in my area( SoCal)

Btw, what machines are you looking at?

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Ok... This is my first post here.

I'm looking in to starting a vending business in Arizona. But I'm having a hard time finding legal info for my state. Any help would be greatly appreciated.

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What specifically do you need to know?  Arizona requires you to hold a Transaction Privilege Tax (TPT) license with which you will file your state sales tax returns.  The Arizona State Dept. of Revenue is the source for that.  Each city you operate in will also require the same.  At a minimum you will need a city tax license for the city you are based in.  The state returns will account for any county taxes.  You will also want to register your business trade name with the Secretary of State's office.

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Thanks for the response. This is all new to me. I appreciate your help.

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