View Full Version : Tax question
briduhunt
02-24-2009, 12:34 PM
I would like to get your take on sales tax bring charged on Maple cotton candy. I understand that you sold over $30,000 in cotton candy alone. I understand that maple syrup and pure maple candy tax is not required but cotton candy is not 100% maple sugar. I do realize that you are not the tax department but I was wondering what you did for the State Fair.
Thanks for any input.
Bucket Head
03-02-2009, 09:14 PM
I am not a tax man, but as the law reads, cotton candy would be a taxable item.
"Pure" maple products are exempt.
Officials are currently fighting over the "candy" moniker on the molded sugar products (leaves). The producers know its a pure product, but because its labled "candy", the state wants it taxed.
Just another thing their tyring to get their greedy little hands on.
Steve
maple flats
03-03-2009, 09:10 PM
I never sell maple candy, I only sell it as pure molded maple sugar.
Bucket Head
03-03-2009, 10:17 PM
Do as Maple Flats does.
Or go a step further and drop the "molded" part.
A speaker at the VVS Seminar said he dropped that from his labels after a thousand "what do you mean, molded? Its moldy?" questions!
I know, I know, its hard to beleive. But after a while, nothing is unbelievable! You just have to shake your head.
Steve
mfchef54
03-04-2009, 02:19 PM
why not call it maple cotton sugar?
Haynes Forest Products
03-04-2009, 07:41 PM
When the government tried to control beef prices they used the standart cuts of meat and what happens. New cuts of meats appeard on the menu. I would add a simple nonsensical step call it something else and always include the word GARMET in the new name. I say a bottle of GORMET pankace syrup it has 25% maple syrup and added color flavoring and quagulent corn syrup and presto it was higher priced than the real stuff.
davey
03-04-2009, 08:19 PM
Brian-
to put it simply, the cotton candy is a blend of cane and maple sugars and as a result is not a "pure" product and is therefore taxable. To be legal you would need a tax Id. number and all of the associated paperwork and filing to go with it. If I remember from an earlier post, you were looking to sell at a craft show. do you have any friends who will also be selling there so you could maybe umbrella under their number? Then if needed, give them the appropriate amount of money if there were any concerns over "being caught"
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