Sales tax for garden gate egg sales?

[Major_in_MS]

I called and asked the Mississippi department of revenue whether I was supposed to collect sales tax on any eggs over my own consumption from my backyard flock that I sell. They told me that yes, I am expected to collect and pay sales tax. They then told me that since I don't have a place of business, but instead I'm operating out of my home that I have to put up a $500.00 cash bond and I would get that back if I ever stopped selling eggs. I told them I probably would not be selling more that 5 dozen eggs a week at $2.00 per dozen. So with an annual sales of only $520.00, at 7% sales tax that was less than 40 dollars tax revenue per year. She is checking to see if I can get an exception to the bond requirement.

Does anybody have experience with sales tax in MS? I sure could use some guidance.

 

[groundpecker]

You should have never contacted anyone about sales tax on just the few eggs you could sell. When it comes to sales tax, there is never an easy route to take. Now if you wanted to start a major egg producing business, then it is wise to contact someone about taxes.

 

[mississippifarmboy]

I'm a business owner in Mississippi..... Have been for 30 + years.



I'd call them back and say you changed your mind about selling eggs.

It's a crazy world.... but those guys at the tax office are sticklers for every little thing, even tiny sales. Technically you would need to collect tax at a yard sale too... but I betcha it's never happened.

 

[Major_in_MS]

Ok, the lady called me back to let me know that I am not required to collect sales tax if I am selling my own produce. She told me where to look on their website to read the exemption code. I copied it below and highlighted the text that might apply to me.





Quote: