State gets tougher on farm, fair taxes

[dkf]

A chaotic scene broke out last month at the Kailua Open Market when tax agents clamped down on so-called "cash economy" businesses, leading to cancellation of the 36th annual Mayor's Craft and Country Fair Saturday and prompting state tax officials to meet with vendors this afternoon at Makiki Park.

The crackdown by the state Tax Department's year-old Special Enforcement Unit comes as dozens of vendors and small businesses across the islands have begun holding holiday craft fairs in homes, parking lots and large halls. The tighter enforcement requires sellers to show proof of general excise tax licenses, keep records of sales and provide sales receipts to tax agents to comply with Hawaii law.

....

On Oct. 28, a nearby flower vendor at the Kailua Open Market "came running over to me, frantic, saying, 'Get your paperwork ready, get your paperwork ready. The tax guy is here,'" Twigg said. "He just got cited for $675 for not having proper paper work."

When one of the agents came to their stall, the Twiggs showed proof they had a GET license but could not produce receipts and were issued a $670 citation, Twigg said.

http://www.staradvertiser.com/news/20101117_State_gets_tougher_on_farm_fair_taxes.html

[EC]

1. We have to pay sales taxes here for anything sold at

Craft Fairs... what's the big deal? I thought all fairs were run like we run them here...sales receipts and a central accounting that we have to report our sales to along with filling out tax forms...

[dkf]

2. Yoikes!

Sounds like we are very informal here. I'm not sure all these vendors do this for a living so it may weed out the more casual vendor.