We're organizing a local fair in our community here in Idaho. I'm trying to gain an understanding for the tax filing requirements. Do the sellers collect sales tax or do we? Also, some of the sellers stated that they aren't sure they have to collect sales tax as they are only here for the fair. What are our responsibilities as organizers?

The requirements are extensive for promoters of a sponsored event as is the case with this Fair. The promoter of an event with two or more vendors that sell or exchange goods or services must collect a completed Form ST-124 from each vendor. These forms must be sent to the Idaho state tax commission within 10 days of the event. Failure to distribute and collect these forms from the vendors can result in a $25 penalty per vendor. Essentially, these forms will be completed by the vendor to indicate whether or not the goods or services provided are subject to sales tax in Idaho. It is also their responsibility to collect sales tax should they be offering a taxable good or service. This can create some problems for vendors from another state as they may not be well informed on the key sales tax laws relevant to their business. It would be prudent for the promoter to direct them to the Idaho tax commission with any questions.