Many people turn their hobbies into a business operation. Not so much to make a living or make big profits, but more to help offset the costs of the hobby. Whenever you go to one of those community fairs, the vendors at the respective booths are mostly folks selling a product that is direct outcome of their hobby. The bands that play on stage, they make some money, but never enough to offset the cost of instruments, gear and transportation. But they enjoy entertaining folks and they hope someday they’ll get discovered.
Revenue tax is assessed against all business operations by the local Commissioner of the Revenue. A business license triggers the tax. It is an annual tax and is paid in increments or on an annual basis depending on your business volume and industry. In some states, the revenue tax is a function of the franchise fee (tax) paid when renewing the entity’s legal documents.