Book Authors and Sales Tax


Book Authors and Sales Tax

By Natalie Bright

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Members of the Texas High Plains Writers enjoyed an informative talk by accountant Dan Brown with ———at the May meeting in Amarillo.

One of the questions that we talked about, which we didn’t have time to fully discuss, involved collecting and paying sales tax for your book sales. Below I’ve listed a few blogs and websites with great information which will help clarify this very confusing issue.

SALES TAX

Ø Note that if you’re selling your self-published book through a dealer at a trade show, or an Internet retail entity such as Amazon.com or bn.com or a publishing service acting as a retail entity (such as Blurb or Lulu.com), the retail entity making the sale is responsible for collecting sales tax. “Sales Tax Facts for Book Authors” at publishing.about.com

Ø You may think that you are paying the appropriate sales tax because you pay the tax to the printing company when you purchase the book. But that tax is only for your purchase price, not the actual selling price. So unless you sell the book at your cost, you will have a sales tax obligation. “Sales Tax Responsibility for Authors” at writeyourlife.net

Ø Reimbursement for books sold through Amazon is considered a royalty and is not subject to sales tax. However, if you sell books through your website, at a book signing, or after a public speaking engagement, sales tax should be included if those books are sold within your state. “Sales Tax Responsibility for Authors” at writeyourlife.net

Ø There are exceptions: 1. selling to someone other than the end user. Generally, states only tax sales on the final user, so if you are selling your books to a bookstore or retail store for resale, you do not charge them sales tax. [NOTE: Most retail outlets expect the ability to add a 50-60% markup above your price. If you quote them a price too high, they may not be able to carry your book in their store.]

2. Selling to a nonprofit organization. In some states, nonprofit organizations are able to obtain sales tax exemption. These organizations should provide you a copy of their sales tax exemption certificate from their state.
3. Selling to out-of-state customers. Usually, you must collect sales tax from customers that live in your state.
Ø The best thing about publishing your own book through Amazon Author Central is that you are not the seller of record. This means you are not responsible for collecting the sales tax on the books you publish. Blog.taxjar.com

Ø Nexus is having a presence in the state which indicates which state you should be submitting sales tax to. Your “nexus” is the state in which you reside and do your business, however every state is different.

Ø Let’s say you’re selling your own book and you spend the summer selling your book at festivals across five states. Some states consider making a single sale in the state to create sales tax “nexus”, while others do not. Many festivals, book stores, etc. will have a bookseller on hand to sell your books for you. This generally includes collecting the sales tax. In that case, you would be off the hook for collecting sales tax. blog.taxjar.com

SELLING BOOKS

Being an indie book author these days can be daunting, but take a deep breath and consider the big picture. The opportunities for reaching readers today is truly amazing. Take off your creative cap and slip into your owner/entrepreneur mode.

Here’s a few more things to consider:

  • · If there is a hosting retail store at the book festival you have a booth at, absolutely take advantage of their ability to handle your books for sale. Be aware that they probably have a zillion things to do for the event. You can be persistent yet professional, but make absolutely sure your books have been ordered. I know of authors who have shown up to events to find they have no books to sign because the order was never placed. Do you leave or should you stay and hand out swag? It’s a horrible situation.
  • · Every state is different. In Oklahoma for example, a representative of the Oklahoma state taxing authority might collect tax there at the book festival. A form will be provided for you to complete and sign.
  • · I sell books at my cost to clubs and organizations because I figure it’s the least I can do after they’ve fed me, paid a speakers fee, and then sat through my talk. I consider the invitation to be a great opportunity to build connections with readers. This kind of networking is invaluable, plus I don’t have to collect sales tax.
  • · Seek out sponsorships for your books. There might be nonprofit organizations that will purchase a case of books for special events. Suggest that your book would make a great table decoration with one at each place setting. Ask for a copy of their tax exemption certificate and attach it to the invoice that you’ve prepared for them.

I hope this helps you. Business is done. Go write now, y’all!

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Hometown Promotions


Hometown Promotions

By Natalie Bright

There’s a line in a country song that goes, “everyone dies famous in a small town”.

How many of your neighbors, coworkers, or in-laws even know that you’re a writer?

Local Fame and Fortune

We have a renowned New York Times Bestselling author here, who’ve I’ve known since she first became published. She now has a huge fan base, both locally and internationally, and she’s worked hard for it.

In the 25 years that we’ve been friends, I’ve known her to do many, many local talks for free, even though she commands major fees around the country. She rarely turns down an invitation to speak at local library fundraisers, book club meetings, or organization lunches. She’s become extremely popular with the Red Hat groups. Her programs include a tidbit of the characters and settings of her stories yet to be published. She’s not only selling her current list, she’s introducing herself and creating a fan base for works in progress. Her Fan Club has grown by leaps and bounds. Usually 100-200+ people show up at her local book signings for new releases.

Sometimes neighbors can be your biggest supporters. When I started out as a nobody writer several years ago, I’ve tried to emulate that train of thought.

Put Yourself Out There. Should You Charge?

Kid Lit authors are highly encouraged to decline school visits unless the school pays a fee because it sets a precedent in the area. I come from that small town mentality where everyone pitches in when asked and volunteerism is the way of doing things.

Right after college, I volunteered at our local historical museum where I spoke to thousands of kids during spring field trips. Today, some of those same teachers ask me to visit their classrooms. I can drop my kids off at their schools around 7:30, make it to the gig to talk about writing, and be back to my day job desk by 10:00. The kids get an inexpensive pencil with my website or a bookmark with my picture and bio. A 2nd grader told me last week, “I don’t want you to leave.” Another one whispered, “I’m writing a story, too.” For me, it’s about connecting with kids.

The publishing business moves at a snail’s pace. I’m making every effort to keep my name out there as a writer, and all it takes is my time and a .39 cent pencil. I’ve never considered charging the schools in our district, where my friends teach and my children have been enrolled since kindergarten.

Sometimes New Opportunity Means Practice

A friend’s daughter asked me to talk in the Dallas area for a reading event. The inner-city school had very limited funds so I agreed to talk for free. I’ve never done a power point for 700 elementary kids, but it seemed like a great opportunity since I’d be in the area anyway for a conference. This teacher is a tech-whiz so she helped with audio-visual set-up in the gym. I did my program for the first 300+, she offered suggestions to improve the clarity of content, and it went even better for the next group. I have the confidence to do it again. Sometimes new opportunity affords you a practice run, and don’t be afraid to ask for help.

Explore Your Town

Here’s that small-town mindset again: your time is free and it costs you nothing to give it away. Everyone you know can open doors to new opportunity. I usually say yes to everything because it always leads to something else. I’m not talking about selling out as a professional, hard selling, or pounding a group over the head about buying your book. I’m talking about networking and connecting with people who live in your neighborhood.

Show up, give them more than they expected, thank them for their time, eat the free meal, and leave your postcard bio. Odds are someone will ask if you have any books with you. Odds are good you’ll get an invitation to come back, or you’ll be asked to speak to another group because of the contacts you made. Odds are even better that someone will look at your website, perhaps follow you on Twitter or Instagram. Don’t forget to send a hand-written thank you note to the person who invited you. They may not buy a book today, but they know your name.

Selling Books

Marketing and promotion is a marathon, and who has the most depth and understanding about your stories? You can relay that passion about your novels better than anybody else. As authors, WE UNDERSTAND it’s business and all about building a platform and selling books, but not everybody has to know that.

Nataliebright.com

 

 

Selling Books for 25 Years


Selling Books for 25 Years

by Natalie Bright

The Amarillo Downtown Library hosted a reception this month to celebrate Jodi Thomas’ 25 year career as a published author. With millions of books in print, numerous awards, and four RITA’s, the prestigious golden statue from the Romance Writer’s of America, this lady deserves a celebration. We also recognized ten years of  The Jodi Thomas Fan Club, which can boast of a membership that spans across the country.

Her fans in Amarillo were delighted to have an autographed copy of the newest historical, PROMISE ME TEXAS (Berkley), the 7th novel in her popular Whispering Mountain Series. Jodi shared news about her upcoming projects, reminding us that inspiration continues to come from the members of her fan club. She knows that we’re anxiously awaiting each and every one.

Autographings and Booksignings

She recalled how early in her career she’d pick an area of the state and cold call bookstores to schedule events. Her husband, Tom, would help load the car with kids and boxes of novels and they’d set out on a weekend road trip to sell books.  Her private dream was to make the New York Times Bestseller List some day. Meeting as many librarians and bookstore owners and people as she could, she never lost sight of her dreams. Many times these connections paid off resulting in invitations to speak at fundraisers, book clubs, and writer’s groups.  I’ve learned from Jodi that you can never have too many people in your network because you never know where those connections might lead. She advised me early on to start a contact list of these people and include them in every mailing.

Setting Goals

Jodi mentioned that her current goal is to write 25-30 pages a week. My jaw dropped. That’s about 7500 words! Every week! I’ve been friends with this lady for some time and I know her plate is loaded with grandkids, guiding college students as Writer-In-Residence, co-chairing a week long summer writing academy and newly elected RWA Board member.  She’s no different than the rest of us, except she’s got 39 novels under her belt.

It’s like one of her long time critique partners stated. DeWanna Pace observed that Jodi Thomas “had the same 24 hours as everyone else does who sets out on the writer’s journey and, yes, life got in the way many times. But she always found a way to shift her strategy and made it all work in the end. She never missed an opportunity to learn more, write more, network more, to help other writers, and meet each goal she set for herself.”

The Truth about Selling Books

Selling books is an endless marathon. Don’t kid yourself into thinking otherwise. A newly published author shared her excitement and told me that her book is with a smaller house so she’ll have to do all of the marketing herself. I’m happy for her. Every publishing credit is thrilling, but the ‘who’ in promotion is a misguided belief.

Bestselling authors do their own marketing too. It never ends. The writing, the advertising, the blogging, the speaking, the selling; successful authors do it all. This business is not for the faint of heart. It’s the hardest work you’ll ever do.

Selling More Books

I stayed after Jodi’s event to help clean up. We carefully wrapped the glorious RITA’s in bubble wrap and packed away mementos symbolizing a writing career that began with the first sale in 1988. We carried boxes of leftover books, pens, bags, and bookmarks to Jodi’s car. Before driving off, she asked me for the Fan Club poster I’d made, a 10-year picture collage of memories. She had a bookstore event the next day and thought it would look good next to her autographing table. I watched this amazing author, teacher, and a dear friend of some twenty years drive away. I suddenly realized that there hasn’t been a time that I’ve known her when her car wasn’t filled with boxes. She’s living the dream. Still selling. Still hauling books.

Go to www.jodithomas.com to learn more about Jodi Thomas, New York Times Bestselling author of contemporary and historical novels.

Happy book selling Wordsmith Six friends!

www.nataliebright.com