A recent article in Zacks explains why the answer isn’t a simple yes or no.
According to the article, “Game show prizes are subject to several different types of taxes, depending on where you live and where you participated in the game show.” But since game show prizes aren’t technically “sold” they aren’t usually subject to sales tax. They may, however, be subject to use tax and must therefore be reported.
While your business may never get to cash in on a windfall it’s important to remember how complicated consumer use tax can be, with various scenarios triggering a requirement for the tax.
Vertex Cloud enables you to calculate and report your consumer use tax, including for accruals, asset and goods management, inventory removal, and purchase orders. Even Bob Barker - and Drew Carey - couldn’t argue with that.