You only need a tax ID if selling taxable stuff, not food.

Does that go for every state? Thanks.

Your social security number can be used for a tax ID if needed. Best bet is to check with the market on what is involved, mine has a website with lots of info.

Check with your state and county and the specific market you want to sell at.

I can cite rules for Phoenix AZ, which doesn;'t halp you much.

I would first check with whatever market you are interested in. Some allow anyone to sell, others require an application and screen those.

Mike

In Indiana you do not need a tax ID unless you are using a business checking account. You need a retail merchant certificate if you are selling taxable items. In Indiana food is not taxable.

Some farmers markets are very small with little or no rules, others are a major business with lots of rules. Also the same for fees, some have none, others have large daily fees.

I started out with less than 1/4 acre, and I was one that had alot of ground. We had vendors with just a large backyard garden, 100 sq ft.

Good luck with your venture, just check everything out and if the market that you think you want isn't right for you, check out another one.

Marla

In Kansas you need a tax number, but most markets will give you a "Special Events" tax number. Food in Kansas is taxed. If you sell by weight, then you will need a certified scales too.

At my hometown market, I am one of the biggest, if not biggest vendors. In another town, I am 4 or 5th biggest. We have some vendors who bring 5-10 pounds of tomatoes and a few zucchini and cucumbers. Very small time.

They tax food?!

Yes, welcome to Kansas!

Its taxed in Colorado also, lower rate though.

Taxed at 1% in Illinois. Everything else is 6.25%. Means that you have to not only keep track of your sales but of the type of sales (plants vs. vegies). We always just figure it as part of the price to keep changemaking simple.

Tom

Indiana, only fast food is tax, thank goodness. I do add the sales tax for my plants into the price, also to keep things simple. We also don't have to pay sales tax on prescriptions, but do have to pay tax on over-the-counter medicine.

Marla

Wow!! Even in New York state, food isn't taxed! I just assumed that it was the same everywhere!

8.25% sales tax at the markets I sell at. Everything sold is taxable at the markets. We just include tax on everything and keep the change simple.

Jay

Here in Alabama, a market farmer must apply for a Grower's Permit and complete a Vendor's Application through the local Extensions Office in whatever county he/she wishes to sell from. With a Grower's Permit, the farmer is not required to pay state sales tax on the income generated through the sell of produce that he/she has grown. Anything things else sold (baked goods, canned goods, craft items, etc) requires the farmer to pay sales tax.

I used to think, the states that didn't have state income tax usually had higher sales tax. Making money off of tourists more than residents. Now, I think all of the states are trying anything they can to get more money.

I always include sales tax in my price on taxable items, then figure it out at home. It makes it much easier and faster at the market.

At least Indiana doesn't require the Grower's Permit like Alabama. YET, that will be next.

Of course, we still have farmers markets that have NO rules for accurate scales, clean kitchens or anything else. Nobody charges sales tax, even on taxable items. It makes it hard to compete price wise with them.

Marla

I remember back in the day when I lived in Mississippi, food was taxed at the same rate as everything else. I couldn't believe it since here in Indiana they don't do that.
I do the same as Marla, I keep track of the plants, include the sales tax in the price, then take it out at the house. You have to keep good records.