The Recreation Committee was to meet with the Town Council on September 11th at 5:00 pm. However, the only council member who came to the meeting was Mayor Helen Miller with no other councilors attending. Likewise a couple of committee persons likewise could not attend.
The major dilemma of the Recreation department revolves around the concession stand which the Recreation Committee is barred from using. The excuse given related to something our CPA Ken Daniels stated about taxes having to be paid. Although Ms. Nikki Williams, the Chairman of the Committee, feels a non-profit should not have to pay sales tax, there is a method to the IRS ruling which requires sales tax has to be paid whether or not one is a non-profit or not.
As an example, let’s say the Town of White Springs received merchandise and food items which they could sell at the same low cost as Dollar General, except that the Town did not have to pay sales tax so as a result their products were more reasonable than Dollar General’s/ Now Dollar General has the same items that they are selling but Dollar General is not a non-profit and as a result must pay the 7% sales tax. That means, the Town of White Springs in this example has an advantage for lower costs than the Dollar General Store because no taxes will be charged the public by the Town. That means the Public would prefer buying their products from the Town of White Springs and save seven percent. That is the reason the IRS and State Legislators placed the rules of law regarding restaurants, concessions and the like. I know sales tax is not a consideration in this area and many who have kiosks at our festivals do not even think twice about it, but it is the Law. It is not difficult to do and when I sold artwork in Marion County, I too had to fill out the tax information and submit money to the State.
So charge enough to include the tax amount and round the item to the nearest dollar. And when your booklet gets filled out, just backtrack mathematically of the amount at the event which was sold and pay the State the money. Also it may be paid on line. It is not a big deal. Let’s say your sods costs $0.50 a can and you sell it for $1.00. You would owe the IRS 7% of that $1.00 or $0.07. You still are making a profit of $0.43 per soda and many non-profits are profitable. Of course you will place in the bulk sales of the event and deduct from your profit the seven percent which will be recorded and sent to the State monthly.
However, I do agree that it is imperative that the Recreation Committee be allowed to utilize the concession Stand as they are part of this Town and serve the public as if they were officials of the Town. It should not be that hard for our accounting department to handle the Sales Tax booklet or handle the matter on line. In fact I am certain quick books has such a program, just like amending rates in the enterprise account.
By the way, 19-11 is the resolution made to accept the operating budget so that it may be provided to the state prior to its deadline of September 30th. A 1.8 (.018) percent increase has been approved for the Enterprise (sewer and water) fund. This increase in rate is based upon 2,000 gallons and represents the increase in cost of living index. It was stated that we have a lack of allocation methodology and have never had a method as to how we charge for things whether it is the Local Option Fuel Taxes or the Enterprise Fund. This has been tabled for the Workshop which will be held on Wednesday, September 18th (Next Week).