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Sales tax to be collected on 36 states soon
shootuadeal
Member Posts: 5,301 ✭✭✭✭
A useful gunbroker.com email. Sellers, remember to be collecting the sales tax on your sales, you will be paying it regardless of whether you collect it or not.
Comments
For you private sellers that aren't sure how to handle this with your sales, Don't worry, it's real easy. Just collect the total due on your "view order" page and the rest happens automatically.
Yep, the instructions at the bottom of the list you posted seem pretty cut and dried. I'm sure this will create great angst among many occasional sellers though, but I don't see why. Thanks for posting.
Ahh yes, all states will be on the tax wagon soon enough. Some how I don't feel to warm and fuzzy about it though.
When at the gun shows, we always used to tell people: "We don't charge sales tax. We collect it."
I was mostly posting to raise awareness so that they remember to charge for it as I have a prediction for you, since you are a mod now you can start preparing for it haha.
In Early April there will be a run on these forms of people that didn't know about it, didn't charge for it and will be coming here to whine about it. My guess is the first ones will show up about April 5th.
Sellers don't need to charge for it, GB does it automatically in the invoice. As a seller, if the buyer doesn't include it in the payment, I won't ship the product. Sellers will be charged for it whether the buyer pays it or not.
Yes, But you know what you are doing. Many of the new people lately on here don't know how it all works and will tell the buyer to send payment for the item and whatever for shipping without even looking at the "order page". They won't notice until later that GB took the taxes off their credit card as well as the selling fees.
If I sell a gun or a tool to my neighbor there is no sales tax, it is a private sale. Why should private sales between individuals be taxed. I understand cars and some other equipment is subject to sales tax even when used but normal everyday untitled items are not taxed. I even can see transfer fees being taxed but not the item. The FFL is a business so we pay taxes.
What is the difference now? Sales tax was collected when the item was a new retail purchase. Why tax a set of reloading dies, gun rug, used reloading brass or whatnot again?
I miss a lot in this life but this seems to be "unfair".
Oh, wait, sorry, life ain't fair, the only things certain in life are death and taxes. Taxes are out of control, and a huge burden upon "WE THE PEOPLE".
Solution: contact seller for payment. No GB checkout.
Thats the problem with paypal on Ebay. They use the blanket approach and tax everything. My state does not tax sales between private parties.
The powers that be have been trying to tax garage sales in Michigan for years.
It doesn't work that way. Sellers are charged the final value fee, plus any sales tax due, depending on where the buyer lives. The instant checkout just allows some buyers to use a credit card to pay on line, taxes are still paid by the seller even if you pay them directly with a check or money order. No payments go thru gunbroker directly.
This is why I posted, to get everyone on the same page. Just like Toad said above, it is not optional. The seller WILL BE CHARGED SALES TAX WHETHER OR NOT HE CHARGES THE BUYER FOR IT OR NOT! The taxes owed will be taken out of his chosen method of payment just the same as his seller fees.
Many sellers will not even be aware of this until they notice on their credit card statement that there was an extra $35 or whatever taken from gunbroker on their $500 item IN ADDITION TO SELLING FEES. That is why I make the prediction of them coming here to complain, should start about early April haha.
Now that is a real stupid idea
Not really, it is Michigan after all. Well actually, stupid and Michigan do go had in hand so I may be a bit off kilter.
yep old flea bay its automatic you buy it you pay taxes on the invoice added by them
think of the billions of dollars windfall states are getting to help the needy the government has been drooling for years over internet sales to get there fingers' in the pot one of the perks for a long time no tax . some one posted a few weeks ago no matter if your just a individual if you sell your business now . pay up and shut up
Local FFL's will get more business.
BPost has made an important point:
Private sales between individuals should be exempt providing states have such laws. If not so GB is wrong.
Sellers should be able to ID as private individual's and GB should be aware of each state law regarding private sales if such
are tax free or they donating to state governments rather than paying taxes.
Many sellers on GB are private individuals who are collectors and not incorporated, not LLC, or Sole Proprietors .
Right now, Gunbroker collects and remits sales tax on sales to a handful of states. I collect and remit sales tax on my Texas sales. Soon Gunbroker will be collecting tax for more states, including Texas. I currently have an account with the State Comptroller and I pay my taxes quarterly.
How often will Gunbroker settle up? Do they have or do they need my account number, so I get proper credit? Will I have to keep my non-Gunbroker sales separate from my Gunbroker sales?
This is all confusing.
So what if you are an FFL/gunshop and are purchasing for resale?
I do purchase items for resale in my business and have a resale cert from my home state.
Will resale certificates be honored?
Just for clarification I am not in the gun business
Just tossing this out
That's about what sales tax is here in Arizona (city, state combo) and we have income tax too.
I'm a private collector, like most of y'all. This new sale "TAX" on GB is a game changer for most "BUYERS". New Colt Talo guns are going over 5/6K. What will be the average sale tax on these type of auctions??? Anywhere from$250/500??....there goes my Ammo money!!!!
Hi guys I’m new to the forum and am still unclear on tax collecting. I sold several items today and need some help.
it appears that GunBroker automatically prints out and invoice with the selling price as well as my flat rate shipping price, and total. I do not see any tax added or how I would go about adding the tax.
Does gun broker automatically send an invoice to the buyer, or do I need to do something to send it to the buyer?
if I don’t collect the tax I am concerned I will be eating all of these tax bills at the end of the month.
I have read all of the notes and emails but still not clear.
Would one of you help be with this concern? I would be most grateful.
Currently only 8 states are required to have the tax collected on. Those 8 states are highlighted in my original post. If the buyers of your auctions are from the states other than the ones highlighted in red you are good to go.
I sent a ticket into support to see if there is a resale provision. I occasionally will buy an item I think is going way cheap to resale so I am interested to know if it is possible.
I will report back if I get an answer.
Thanks for your fast response shootuadeal. That explains why no tax added to Invoice as no sales to any of those 8 states.
Can you tell me if I need to do something to send the invoice out or if it goes out automatically? Possibly it is prompted by something the buyer needs to do?
The buyer has access to the "order" same as you. Many buyers, especially new ones are lost and never see it so It is good form to send an email to the buyer stating the total due, where to send payment, how you want to receive the FFL, etc.
Gunbroker.com flows it nicely if they go through the checkout process but like I said, most don't go through it properly. There's many ways to transact things on here. Like I said, I recommend an email to the buyer explaining how you want payment and FFL, it should be easy after that.
If you have any other questions or anything just ask or send me a message and I'll do my best to answer.
Thank you. I greatly appreciate your help and time spent answering my questions.
Best Regards,
Phil
I got an answer to the buying for resale question...
How do the states get the sales tax from GB?
I would imagine GB will remit collected tax revenue to each state's department of revenue in a quarterly or monthly basis, just like any other company would do.
I reckon I will purchase from States not yet taxed. In the search engine it will bring up individual states.. type in what you are looking for.
select-fire it's where the buyer is located not the seller... or where you just being funny?
Wasn't met to be funny. That is now most likely my end of purchasing on GB unless I cannot find the article .
The only way I know of to avoid sales tax whether through gun broker, other online sites, or local retail is to not use them and do a private face to face sale between individuals and even that isn't legal in all states, thank goodness it is still OK in Texas... so far.
This will hurt the sellers more than the buyers. Most buyers calculate to see what they will be all in for, including shipping, cc fees and now sales tax. They then know what their maximum bid price would be to come up to the total amount they are willing to pay. So, theoretically, the seller will be the one paying the sales tax through a lower bid price.
Pretty sure you are liable for paying sales tax on items bought out state and shipped to where you live and it has been like that for ever.
Folks just have hever been audited or question about it.
I just got a invoice for sales tax from GB with me owing 60 plus dollars and it's been over a month since I sold anything. I look at sold orders, didn't see I COLLECTED ANY so its with me. I am going to have to sort this out before I anymore transactions. Gosh I hate this tax burden for GB and seller, buyers.
This is why I am doing my best to let everyone know. It started with the 8 states in January, so the majority of sales didn't get automatically collected. Now when it bumps up to 36 states most will be taxed. Prepare for it by knowing the process so you don't get stuck with the tax bill you should have collected from the buyer.
One more time for everyone...YOU have to collect the tax from the buyer.
It is just a way for the Govt to try and shut down the site for saying everything isn't going the way they want.