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Nebraska: Craft Fairs and Sales Tax

  • Mar 21, 2014 | Gail Cole

 Decorative mushroom pincushions? Subject to sales tax at Nebraska craft fairs.

Perusing art shows and craft fairs is a favorite past time for many Americans. Those willing to travel will find a fair almost every weekend of the summer, and many other times of year as well. Some craft fairs garner statewide attention, like the Sunapee Craft Fair in New Hampshire. The reputation of others, such as the Oregon Country Fair, expands well beyond state borders.

While fairs and art shows happen throughout the year, the majority of events take place spring through fall. Nebraska’s first fair of the season is this weekend: Omaha’s Spring Arts and Crafts Fair. Next weekend Lincoln hosts the Mother of All Garage Sales, and the first weekend of April brings even more events. It’s no wonder the Nebraska Department of Revenue recently released information regarding the collection of sales tax at craft fairs and similar events.

In a nutshell, sellers are required to collect sales tax on sales of taxable merchandise sold at craft fairs, art shows, and similar events. The department reminds that even if what you do feels like a hobby rather than a business, if you sell taxable merchandise in Nebraska, you must collect and remit sales tax.

Out-of-state vendors

Fairs and festivals often attract vendors from outside the state and these sellers are also required to collect and remit Nebraska sales tax on sales made in Nebraska. A Nebraska sales tax permit is required. Only vendors selling only exempt items (fruits, vegetables or bakery items) are not required to register for a sales tax permit or collect and remit sales tax.

The Nebraska Department of Revenue does not allow most vendors to “advertise or imply in any way that the sales tax, or any part of the sales tax, will be assumed or absorbed by the seller or that the sales tax will not be added to the selling price.” An exception may be made for admissions or concession sales of food.

Keeping track of sales tax rates in all craft fair locations is a big job. Geolocation can help. Check it out.

photo credit: Orin Zebest via photopin cc

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.