I know that I don't have to charge (or pay to the state) tax on my baked goods. (I'm operating under the cottage food law.) I was contemplating running a promotion where I sell cake pops as a bouquet in a coffee mug. If I buy the mugs and pay the sales tax, do I need to charge sales tax and file it with the state? I'm not buying my boxes tax free, so would the mugs just be like my packaging or cake boards, as part of the supply cost? I haven't started the promotion, so if it is iffy, I won't. I've tried searching online, and I just don't understand what I'm even looking for, and I thought maybe someone here knew from experience. I'm in Texas, if that makes a difference. Thanks!
According to rule 3.314(b)(3) of the TX Administrative Code dealing with sales tax, tax is not due on a nonreturnable container if you sell the container filled with nontaxable product. You should also be able to qualify for an exemption from paying sales tax on the mugs yourself.
You'll probably want to confirm this with the state though, their tax assistance number is (800) 252-5555. If you have county or local sales taxes they may have different rules as well.
Thanks, Jason! That helps a lot!! I didn't even know where to start looking. I'll bookmark that site for future reference.