I don't believe for a minute that the police are driving around looking for unlicensed lemonade stands or PTA fundraisers. However, they will respond to complaints from busybodies. That activity of busybodies is the source of silly laws as well as their selective enforcement.
I once had a dumptruck dump a load of topsoil on my front yard so that I could fill some raised bed gardens. Within 10 minutes of the truck leaving, the busiest busybody of the neighborhood stopped by to inform me that "construction debris" was not allowed to remain on lots ("illegal" even - LOL) in the neighborhood. By luck I had a copy of the covenants within reach and showed him that I had 6 months to remove it. I also pointed out that I had both a wheelbarrow and gardenway cart and plenty of shovels if he'd like to help.
I don't know for sure in this case, but I do know legislators get complaints from storefront vendors about fundraisers and internet sales not collecting taxes and not having expenses, leases, paid employees, yadda yadda, and they respond to those complaints. Its actually a common theme at town hall type local meetings with legislators.



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