Making any baked goods from your house that you are going to sell has a law that you need to know about in New York State. If you qualify, you can save some serious money.

If you are selling your items at farmer's markets in New York State, to fairs or flea markets here is something that you should know to get yourself tax exempt. According to the New York State website:

If you plan to make foods such as certain baked goods, jellies, or snack mixes, you may qualify for a Home Processor Exemption. This will allow you to prepare food in your home kitchen for wholesale or retail sale at agricultural farm venues and you're going to be tax exempt.

  • All items are for marketing products at wholesale and/or retail, including agricultural venues such as farms, farm stands, farmers markets, green markets, craft fairs and flea markets, via home delivery, or via the internet.

  • All items must be sold within New York State and must be pre-packaged in the home and properly labeled. Packaging of food items at an agricultural event (craft fair, farmers' market, etc.) is not permitted.

Be sure to consult with your local zoning officials for approval before commencing any home-based business and DO NOT just assume that you are going to be tax exempt. The State goes on to say that there are some requirements vary depending on the type of foods you plan to make and how you plan to sell them and they are very specific such as the labels that need to be on product and you can see those here.

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