Home Baking- Sales Tax In Arizona Help!!

Business By laylabean Updated 18 Sep 2015 , 5:39pm by Webake2gether

laylabean Posted 15 Sep 2015 , 5:24pm
post #1 of 4

Hi, I recently joined the home baking certification program here in Arizona. Through this program, I'm allowed to legally sell confectionary goods from my home without needing a business license. We only need the certification to operate. Will I need to charge sales tax on my orders? I don't have a EIN since everything flows through my SSN as a sole proprietorship. Arizona doesn't charge tax on most food items but some do- there's a Transaction Privilege Tax. But since I'm not required to have a license to sell my goods, am I exempt for charging (and therefore paying) sales tax? It's nearly impossible to get answers from the state on this. The home baking division here is unique to most of the food laws I've been reading since we're not licensed. Just curious if anyone else here is in AZ in the home baking business, or if their state is similar, how to conduct this. Any help is appreciated.

3 replies
mellee2012 Posted 15 Sep 2015 , 8:07pm
post #2 of 4

 I am not in AZ, but do work for the Department of Revenue in FL.  I found this on a web search.  It is a starting point.  I will keep looking and see what I can find.


https://www.azdor.gov/Portals/0/Brochure/575.pdf

laylabean Posted 18 Sep 2015 , 2:27am
post #3 of 4

Thanks mellee2012 

I saw that in my research.  It mentions that Confectionary goods aren't taxable.  I'm assuming that cake and cupcakes fall into that category :)  Especially since they're not consumed on my premises (my house).  However I've had some contradicting advice, which just ends up scaring me that I'm doing something wrong.   The baking program here is run by the Health Department, and it's hard to get professional business advice from their "help" line.

I lived in FL for 25 years... great state. 

Thanks for the advice! 


Webake2gether Posted 18 Sep 2015 , 5:39pm
post #4 of 4

I don't really have any information but thought it was interesting how different each state is regarding taxes. I pay 1% sales tax here in Illinois. I have an accountant now and I called him and double checked to make sure I was paying the necessary taxes bc it is very confusing and I don't want mistake on my taxes lol. I fall under a category here that allows for the 1% but it was confusing so I understand what your going through!! How awesome that you are able to do that in Arizona through the health department. Good luck to you!!!

Quote by @%username% on %date%

%body%