Where Does the Sales Tax Go? Spoiler Alert: Not into Our Pockets.

Where Does the Sales Tax Go? Spoiler Alert: Not into Our Pockets.

 Ah, sales tax… that little extra line on your receipt that makes your total just a smidge higher than you expected. Some people believe that small business owners (like us here at Personal Space Creations) get to skip off to the bank with that tax money like it’s part of our profit. Spoiler alert: We don’t. Not even close.

Let’s break it down in simple terms—without the accounting jargon and with just enough sass to keep things interesting.

What is Sales Tax, Really?
Sales tax is money that the state (and sometimes local governments) require businesses to collect on their behalf. We’re basically acting as middlemen. Think of us as the friendly neighborhood tax collectors…without the fancy suits or government pensions.

When you buy something from our shop—whether it’s a custom coffee mug, a handmade charcuterie board, or that perfect snarky gift—we ring up the sale, calculate the correct sales tax, and add it to your total.

Where Does Your Sales Tax Payment Go?
At the end of each month (or quarter, depending on the business size and state rules), we take every single penny of that collected sales tax and send it off to the Tennessee Department of Revenue.

We don’t get to keep it.
We don’t get a commission.
We don’t get a coupon code for turning it in on time (although wouldn’t that be nice?).

If we don’t submit it, we get fined. Heavily.
If we’re late? More fines.
If we forget? The state gets cranky.

What Would Happen If We Did Keep It?
Short answer: We’d be in big, expensive trouble. Long answer: It’s illegal. Not the kind of “oops, slap on the wrist” illegal—the kind that leads to audits, penalties, and possible criminal charges.

Why Are We Sharing This?
Because we believe in transparency and trust. And because, frankly, we’d much rather spend our time making beautiful, personalized gifts than dealing with tax drama.

So next time you see that little sales tax line on your receipt, know this: It’s going exactly where it’s supposed to—straight to the state.

And every dollar you spend with us (before tax) stays right here, helping us keep the lights on, restock supplies, and maybe even splurge on a fancy new label printer.

Thanks for shopping local—and thanks for understanding how this whole sales tax thing actually works!

Back to blog

Leave a comment

Please note, comments need to be approved before they are published.