There is a very informative thread in the forum right now all about consignment. The big question is this: If the consignment store owner collects and reports all applicable sales tax, what type of tax liability does the crafter have to report? Well, simply put, you do not have a retail tax liability. However, you still must report all earnings. Keep in mind that any tax advice you receive online should be talked about with a knowledgeable CPA. Tax laws change all the time and you are best protected when you hire a good accountant/tax advisor to handle the legalities2 when it comes to paying your taxes.