Farmers markets in Ohio continue to grow in number, and the types of vendors and products offered by those vendors have greatly diversified over the years. Along with this growth come new questions about vendor’s licenses and the collection of sales taxes.
Many market vendors may know that traditional market items like fresh fruits and vegetables do not require a vendor’s license or the collection of sales tax. But what about beverages, cottage foods, plants and flowers, ready to eat foods, soaps, crafts, and similar items that contribute to the success of today’s farmers markets? Fortunately, learning about Ohio’s vendor’s license and sales tax requirements doesn’t have to be a taxing experience.
In our fresh off the press law bulletin, titled “Vendor’s Licenses and Sales Taxes at Ohio Farmers Markets,” we dive into a number of questions that farmers market vendors frequently ask us. Specifically, we address questions such as:
- Do vendors at a farmers market need a vendor’s license?
- What items do not require the collection of sales tax?
- What items do require the collection of sales tax?
- How do I obtain a vendor’s license in Ohio?
- Is a vendor’s license the same as a retail food establishment license?
- What if I want to sell products in other states?
- Can vendors include sales tax in the price of the product?
While this law bulletin covers vendor’s licenses and sales taxes fairly in depth, there is always more to learn. The law bulletin also provides a number of links to helpful resources from the Ohio Department of Taxation and neighboring states, along with a number of references to Ohio law.
Click HERE to view our latest law bulletin.
With spring in full swing and summer just around the corner, many producers may be considering selling produce, meats, cottage foods and baked goods directly to consumers at the farm property. A question we often hear from farmers thinking about these types of farm food sales is, “do I need some type of license or inspection to sell food from the farm?” The answer to this question depends upon the type of food offered for sale:
- Sales of foods such as fresh produce or cottage foods do not require a license.
- Sales of certain types of baked goods require a home bakery license.
- Sales of multiple types of foods or higher risk foods require a farm market registration or a retail food establishment (RFE) license.
- The home bakery license, farm market registration, and RFE license involve inspections of the production or sales area.
It is important for a producer to carefully assess the food sales situation and comply with the appropriate licensing or registration requirements. To do so, a producer should identify the type and number of food products he or she will sell and whether the food poses low or high food safety risk.
Our new Law Bulletin, Selling Foods at the Farm: When Do You Need a License? will help producers assess their situations and determine their needs for appropriate licensing, registration, or inspections. Read the bulletin on http://farmoffice.osu.edu, here.