Are you an Unknowing Event Promoter?
According to the Idaho State Tax Commission any person or business who allows two or more people to offer products for sale or exchange or charges admission is considered an event promoter (see http://tax.idaho.gov/i-1037.cfm and http://tax.idaho.gov/pubs/EBR00643_06-08-2012.pdf for details). This includes church bazaars, swap meets, yard sales not held at a private home (including those held at churches and businesses), business open houses at which friends and family are allowed to sell products, wedding shows, trade shows, non-profit events that charge admission, and more, even if the profits will go to charity.
As an event promoter, you must notify the State Tax Commission and obtain a Form ST-124 for each person who will sell at your event. You complete the top portion of each form and have the vendors complete the remaining sections. You then collect the forms and mail them to the Tax Commission within 10 days of the start of your event. Each person selling a product will be required to display his/her sales tax permit at their table or booth. If they do not have a permit, a temporary one can be printed on the Tax Commission's website. Failure to distribute and return the ST-124s can result in a $25 per participant penalty.
Fortunately, you, the promoter, are not responsible for remitting collected tax on anything other than admission fees and products you or your business personally sell. Once you order the ST-124 forms, don't be surprised if someone from the Tax Commission shows up at your event. If merchants at your event provide information about a service only (hand out flyers or brochures), and are not selling a product, they do not need a sales tax permit, though it would be prudent to complete a form ST-124 and indicate on it that they do not sell products.
Who knew it could be so complicated to do your friends a favor by allowing them to make a little money selling their cookies at your event?
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