I run into that a lot. In fact, many of the NY Tax Agents who go
"undercover" at shows by bringing their child along also try to make
me forgo the collecting of tax. What I usually do is point out that
it is the LAW that I must collect tax. Not only would I be subject
to arrest for failure to collect sales tax, but THEY could also be
arrested as well if a tax agent was nearby watching the sale take
place. That usually ends any discussion with 99% of the customers
and the sale is concluded with them paying the sales tax. It HAS
happened to me twice that of the 1% who still balk at paying the
sales tax, that it was a tax agent. As far as I am concerned, if
that final 1% refuses to buy without paying sales tax, their sale is
not worth it and I just refuse their offer. To be that desperate for
that low balled sale makes me feel degraded and I won’t let my
product be cheapened as such.
Judy Shaw