It's that time of year again when everyone starts to look for gifts and decorations.
For some shoppers, residential craft and bake sales can provide a welcome change to shopping at the big box stores, offering exclusive and affordable items. What many St. Albertans may not know however, is that seasonal craft sales in residential areas technically require a business licence.
"The minute that money is exchanging hands it would be a business," said Cheryle Wong, St. Albert business licence inspector. "Especially if you have people coming and going to your home. That's a business."
Wong said anyone planning to sell out of their home is first required to apply for a development permit through the city's planning and engineering department. Residents would also have to notify their neighbours and have them fill out a consent form provided by the city. Otherwise, they may receive complaints about the increases in traffic on their street, she said.
Once that form is completed, the planning and engineering department sends out building inspectors to clear the property for occupancy. After that, residents can apply for a business licence, she said.
In general, Wong said applications for business permits take between three and four weeks to be completed, and are available at a reduced cost of $53 between the months of September and December. The year-round licence fee is $127.30.
Benefit of the doubt
Barbara Krebs said she asked her neighbours before having a craft sale at her St. Albert home this past weekend. Most of them came out to shop, she said, and there were no concerns about traffic.
She added that she was unaware of the city's regulations for having a craft sale out of her home but they were downsizing and only called it a craft sale because of the time of the year.
"This was a garage sale but I didn't want to say garage sale because you can't be in the garage this time of the year," she said.
Wong said garage sales differ from craft sales as they only happen at a certain time of the year – the summer – and usually last for two days. They would, however, require a permit if people had them for more than three times in a row, she said.
She stressed though that the business licensing department usually doesn't go after people for having one craft sale. They would require them to buy a licence if they had numerous sales and possibly call before or after the first one, she said.
"A lot of times people don't know that they need a business licence and you sort of have to give them the benefit of the doubt," she said. "If we heard of someone having a craft sale out of their home and they only did it once, chances are we wouldn't be charging them."
Bake sales
These rules change though once the craft sale includes baked and other edible goods, she added.
According to Alberta Health Services, any individual operating a for-profit food business requires a food handling permit. These permits are issued following the inspection of the home through public health officials.
"If you are baking out of your home you have to have commercial ovens, for example, and you have to have proper ventilation," said Wong. "There is a whole list of requirements through Alberta Health because Alberta Health doesn't want you to sell products that could potentially create illness to a person."
Alberta Health also warns that it is illegal to sell or distribute home-prepared food at any venue other than a farmers' market or community organization event.
Home baking is permitted as part of a charitable bake sale. These sales are defined as the sale of low risk foods exclusively sold for the purpose of raising funds for a community group. Examples would include a fundraiser at a school or church.
More information on food handling permits and requirements can be found at health.alberta.ca. To contact St. Albert business licensing go to cultivatebusiness.ca/licensing or call 780-459-1618.
