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Old 12-14-2006, 03:01 AM
buzzy
 
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Default Pitfalls of seeking sales tax exemption too soon

I'm a newbie, and maybe someone out there can provide some advice. I have done amateur phorography and am thinking of starting to prepare framed photos for ultimate sale. If this is to become profitable, I need to buy framing supplies, etc. at wholesale, so I was thinking of obtaining a Sales Use and Hotel Tax license so I could buy supplies at wholesale.

What I don't know is - if I end up not actually selling anything for a few years, am I letting myself in for trouble from some unknown quarter? Will the Commonwealth of Pennsylvania, for example, be expecting me to send in sales taxes on my (nonexistent) sales?

I can see the state having a concern that just anyone could get a (free) sales tax exemption and buy things at wholesale for personal use without paying sales tax. My common sense tells me that there may be a pitfall in this that I am unaware of. Any ideas?
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