Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
185.0000 CONSIGNEES AND LIENORS OF TANGIBLE PERSONAL PROPERTY FOR SALE—Regulation 1569
185.0004 Art Shows. An art association holds art shows at which 40 or 50 artists exhibit their work at individual booths. The association provides a central cashier to handle all credit card sales (but not cash sales). The association also pays the discount fee charged by its credit card processor. When a customer makes a credit card purchase, the artist completes a sales receipt writing "credit sale" on the receipt, and gives a copy to the customer. The customer takes the sales receipt to the central cashier who processes the credit card charge amount including "sales tax" from the information on the sales receipt. The cashier gives the customer a copy of the "credit receipt" and the customer returns with it to the artist's booth in order to obtain the item purchased. Each artist has his or her own seller's permit. After the show, the association sends checks to the artists for the amounts of their credit card sales after deducting commissions and other fees due the association.
Since the artists are making retail sales and transferring title and possession of the artwork to the customers, they must report the sales and pay the sale tax to the Board. The association, representing the artists in dealing with third persons by processing credit card sales and collecting sales tax reimbursement from credit card customers on behalf of the artists, must remit to the artists the sales tax reimbursement which it collected on credit card sales. 1/8/98. (M99–2).