Jump to content
caserri

State specific licensing and tax info

Recommended Posts

Alpine,  the seller is nuts to suggest that you don't need liability insurance, especially since it's pretty affordable and based on your gross sales.  If you don't have insurance then you're leaving yourself open to lawsuits in the event anyone injures themselves on your machine, gets shocked, tips if over onto them, etc.  If you aren't protected with liability insurance I wouldn't put my faith in any LLC or corporate veil to save you.

 

For the licensing issues, check with you state department of revenue regarding sales tax and business licenses.  You might also need a local license or two depending on how they do things in the Beaver State.

Share this post


Link to post
Share on other sites

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.

 

 

Does the requirement for a TPT license apply to ALL vending machines (like Vendesign for candy only) in Arizona? Or is the TPT needed for snack or beverage vending only? Do you have any links or places online to read up on this information? I have searched but couldn't find anything. Thanks

Share this post


Link to post
Share on other sites

In Arizona, any sales generated from selling a product or service are subject to sales tax.  You can read through the Dept. of Revenue site  for exemptions available to certain classes of tax returns but I've never seen one that exclusively exempted any sales from any vending unless the sale qualifies for the "food for home consumption" exemption.  To use that exemption, the exempted sales must be made in a location where it can be presumed that consumption of the product would not take place and that the sale could be treated the same as if it was being taken home from a grocery store before being eaten. 

 

I have personally experienced the law being interpreted to extend even to a parking curb in the parking lot where someone could sit and eat the food, but that was an extreme use of the law by one city and was soon changed.  However, the burden of proof that consumption doesn't take place on premises is on the vendor.  If there is any seating available then the exemption won't apply, so that rules out restaurants, breakrooms, laundromats, etc.  If your machine were in a public place with no seating then you could probably use the exemption. 

 

Each city can offer different exemptions in their own way and many have no exemption for "food for home consumption" because they tax food sales.  Any vending of products or foods fall under the Retail classification.  If you sold bulk toys of any kind there would be no exemption.  One other example of a non-exemption is of a machine that produces the product it sells, such as a coffee machine or cotton candy machine.    

Share this post


Link to post
Share on other sites

Move to a state that doesnt punish poeple for making money.

Hahaha, what state DOESN'T?

 

I just finished applying for my business license today after spending many hours/days researching all of the requirements. I'll share what I know.  Some of the items mentioned in this post may give some insights in requirements to explore with any other states, such as: can you register in 1 city and operate in other cities?, federal ID #, your state's charity guidelines, requirements for employees, state sales tax, unemployment insurance, etc.  I'll also share a free ebook about setting up your business entity applicable to any state if you scroll down to the 2nd para. after the codes listed below.

UTAH requires a business license for any activity that involves profit or gain. (This even includes being an independent contractor or MLM sales, etc.). The business license application is filed through the city of the business location. Usually a vending machine business would be considered operated out of the home unless there was a separate business location.

Most cities honor the business license of other cities, but some do not. Such as, I heard that Park City requires a business license to do any business there. (I haven't verified this rumor.)

(Operating without a business license can result in a Class D misdemeanor punishable by either a $1500 fine or 6 months in jail.)

 

First, I wouldn't be surprised if that was true of the "elite" that is Park City. 

Only a misdemeanor?   Hell, I'm not even going to worry about being legal now.   $1,500?  Sounds like a CLASSIC case of "easier to ask for forgiveness than permission."  I'll do anything I can behind the mess that is our governments back, I mean really, how many people actually get caught vending without a license?  My guess is not many.

Share this post


Link to post
Share on other sites

It only takes 1 competitor

Good point.  Guess I'd know who's machines to destroy and sabotage when I got out of jail though ;)

Share this post


Link to post
Share on other sites

Gwen, A ruling by the SC DofR in 1991 says that you must pay the sales tax at purchase and lisc is required. Search SC Department of Revenue-bulk vending. This is all that I could find. Mitch

Currently off the SC Dep of Revenue website it states:

 

Vending machines are not licensed by the Department of Revenue. To see the DOR Vending Machine Policy, see Policy and / or Publications. The county of city in which your business is located may require a license. Check with your county or city.

Share this post


Link to post
Share on other sites

Anyone ever find anything on Oregon? I know I wouldn't have to collect sales tax (we don't have any) but not sure on the other legal stuff and not really sure where to look. TIA if you know!!

Share this post


Link to post
Share on other sites

Hope I didn't miss a post/duplicate a post but I am starting a vending business in Illinois (not near Chicago) and this is what I've found so far...  Still working on finding out how sales tax will work here.

Sole Proprietorship is the style I am setting up.

1. Register (DBA) with each county that will have a machine.  $5 fee for the counties around me.  Must submit a publication notice in a paper for 3 weeks in each county, its going to run about $90-120 for each county.

2. Illinois Department of Revenue form REG-1, Illinois Business Registration Application. Talks about a fee but I cant find how much it is.  This will give you a Illinois Business Tax Number (IBT)

3. Illinois Department of Revenue form STS-80, Request for Vending Machine Decals.  No fee but you must have a decal for each machine.

If I am missing anything or anyone has anything to add or clarify let me know,

Nic

Voltage Vending

Share this post


Link to post
Share on other sites

Looking for some help understanding Ohio's Sales Tax on food.  Food purchased for "off-premise" consumption is Tax-Exempt.  Sales Tax, however, is to be charged for "on-premise" consumption.  So my question is: Where does Vending fall in all of this?  If someone buys something out of a vending machine or honor snack box, is it taxable or not?  The vendor can't monitor whether the customer at the item right there, or took it with them to another location, right?  Is this wording of the Food Salas Tax for restaurants and caterers?  Or do vending companies in Ohio have to pay sales tax on all sales?  Then comes the confusion of the different rates in each county.  Does a vending company have to track each location's sales separately for sales tax purposes?  Any insight from Ohio vendor's would be MUCH APPRECIATED  :) 

Share this post


Link to post
Share on other sites
58 minutes ago, flintflash said:

Looking for some help understanding Ohio's Sales Tax on food.  Food purchased for "off-premise" consumption is Tax-Exempt.  Sales Tax, however, is to be charged for "on-premise" consumption.  So my question is: Where does Vending fall in all of this?  If someone buys something out of a vending machine or honor snack box, is it taxable or not?  The vendor can't monitor whether the customer at the item right there, or took it with them to another location, right?  Is this wording of the Food Salas Tax for restaurants and caterers?  Or do vending companies in Ohio have to pay sales tax on all sales?  Then comes the confusion of the different rates in each county.  Does a vending company have to track each location's sales separately for sales tax purposes?  Any insight from Ohio vendor's would be MUCH APPRECIATED  :) 

What part of Ohio are you in? I don't have an answer, but I'm a fellow Buckeye as well. 

Share this post


Link to post
Share on other sites

Looking to do something in the Sylvania area.

Share this post


Link to post
Share on other sites

KANSAS
Step 1. What type of business do you want to start?

Food Establishment. Any operation that offers food directly to the end consumer is considered a Food Establishment. Common examples are grocery stores, convenience stores, restaurants, school food service operations, bakeries, mobile food operations, bars, taverns, and delicatessens. Any place where food is served or prepared for sale or service on the premises or elsewhere. Any other eating or drinking establishment or operation where food is served or provided for the public with or without charge falls under the Food Establishment umbrella.

Food vending machines.  In Kansas, food vending machines are defined as any self-service device, which, upon payment, dispenses unit servings of food, either in bulk or in packages. Such device shall not necessitate replenishing between each vending operation. Food vending machine companies are defined as “any person in the business of operating and servicing food vending machines.”

Food vending machines are exempt from licensing as long as three requirements are met. First, the facility that services the machine is licensed as a food establishment, or if located in another state, licensed according to the laws of such state. Second, the food vending machine company/operator of the food vending machine must maintain a current record of the location of each food vending machine it operates or services. The records must be made available to Food Safety Program staff on request. Third, each food vending machine must conspicuously display the food vending machine company/operator’s name and phone number.

 

Any vending machine that only dispenses canned or bottled soft drinks or prepackaged food that does not require temperature control for safety is not subject to these requirements.

 


last part would be most important for most vending in ks
 

Share this post


Link to post
Share on other sites

Anyone have information on claw machines in Wisconsin? I know there is a provision in the gambling statute deeming them legal but can't find information regarding registration of machines, license, and annual fees etc.

Share this post


Link to post
Share on other sites

Does anyone have information on the laws for Georgia?  I have seen people on here stating they have hundreds of machines in North and South Georgia so I am hoping someone can at least point us in the right direction. 

I am looking to start out in bulk vending in Georgia, but the information I have been able to find is so convoluted.  I have seen some information saying that candy isn't taxed, and other information saying anything coming out of a vending machine is taxed, regardless of what it is.  

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×