Firearm Compliance FEE

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vintovka

vintovka

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From Gunbroker just now:

On 7/26/2021 GunBroker.com will be assessing a compliance fee. The fee will be assessed on the purchase price of the item only and will be added to the order total paid by the buyer. The compliance fee will be collected by the seller and remitted to GunBroker.com through the seller fee ledger. The fee will appear as a separate line item on the seller statement.

Example:
Compliance-Fee-Screenshot.jpg
What is the Compliance Fee?

The Compliance Fee is a fee assessed by GunBroker.com and added to the price of the Item at the time of purchase. The U.S. states have been very active in passing new laws applicable to GunBroker.com, including in the areas of taxation, privacy and firearms. These laws have increased the compliance costs of GunBroker.com substantially.

Thank you,

The Team at GunBroker.com
 
I am confused. Is the compliance fee in lieu of state sales tax? If not, then what does it cover? And how will GB handle the situation regarding states where the FFL who receives a gun is required to charge sales tax before the buyer gets the gun?
 
Another slice that they can add on, so they do. If they make it sound like something official, resistance is reduced and they may avoid taxation on the new revenue stream, at least for awhile. Online businesses chose not to collect sales tax when they had a choice, cheerfully making many buyers tax evaders if not criminals, while offering low prices to take business from bricks and mortar. Now that they have discovered they can't get away with it, they tack on bogus charges that were always included in the local business prices.
 
It costs money to comply with the sales tax laws, each state has its own policies, and you have to have a sales tax permit for which some states charge a fee or a deposit. Some large companies hire firms to run all this for them.
 
This is really bad for sellers and buyers alike. I am letting them know what i think of this BS. I encourage everyone to do same. If we do nothing they will up the fee!!!!!
 
tarosean said:
Pretty sure every state has a use tax.
We have ourselves to blame not the companies.
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That would be so if not for human nature. Human nature is why sellers are obligated/expected to collect the tax and remit. They have the proof of purchase, and they can add the tax to the sale price. But, if they don't collect the tax, their total is lower and they are likelier to make the sale. The use tax is largely unenforceable and everyone knows it. What good is an unenforceable law?

Stop and think how things would be if humans could be relied upon to do the right thing. Instead we have laws and people who break them, unwittingly or intentionally every day.
 
Apparently some of you don't understand the concept of an audit, which every state taxing authority has the right to perform. If you don't collect the sales tax from the buyer, that's fine. You will pay it, and you can expect to be audited again real soon. We all have enjoyed the tax free internet shopping for many years but that has now come to an end. Deal with it.
 
Does anyone’s local gun store charge a compliance fee to cover the cost of collecting sales tax? I didn’t think so.

Florida’s sales tax system is 6% collected and the retailer gets to keep a small amount of that to cover the compliance costs. I guess that’s not enough for GB.

If we don’t like it, we don’t have to use Gunbroker.
 
jag22 said:
Apparently some of you don't understand the concept of an audit, which every state taxing authority has the right to perform. If you don't collect the sales tax from the buyer, that's fine. You will pay it, and you can expect to be audited again real soon. We all have enjoyed the tax free internet shopping for many years but that has now come to an end. Deal with it.
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Yes black and grey markets will love it. In big cities unlicensed non tax paying street vendors seem to do well. I think much of the stuff is hijacked off trucks. Other means of dealing with it is to stop buying taxed goods.
 
From what I can tell the compliance fee has nothing to do with sales tax... It's because a handful of states are increasingly looking into new ways to make buying and selling guns more difficult. The new fee should be leveled on buyers and sellers in these specific states.
 
John_R said:
Does anyone’s local gun store charge a compliance fee to cover the cost of collecting sales tax? I didn’t think so.

Florida’s sales tax system is 6% collected and the retailer gets to keep a small amount of that to cover the compliance costs. I guess that’s not enough for GB.

If we don’t like it, we don’t have to use Gunbroker.
Click to expand...

Brick and mortar stores in Florida aren't trying to collect sales tax from all 50 states and be versed in the differing regulations of each state well enough to be in compliance.
 
GNP said:
Brick and mortar stores in Florida aren't trying to collect sales tax from all 50 states and be versed in the differing regulations of each state well enough to be in compliance.
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Uh..........how do you know?:scrutiny:
I know of three Florida retailers that do.
Since the South Dakota vs Wayfair decision, many states require out of state retailers collect sales tax on purchases shipped to their state. Any retailer who isn't "versed" may find himself in hot water from a place he's never been.

That said, many states have a threshold that does not require collecting by the retailer until his sales to that state meet the threshold. Texas, for example, its less than $500,000 in the preceding twelve months. Meaning if you sell $499,000 worth of guns to Texans you dont need a TX sales tax permit or need to collect and remit the 8% to the Texas Comptroller. Hit $500,000? You owe.

I know of several internet retailers that could be on the hook for $$$$$ because they aren't charging/collecting/remitting as required. I emailed one of the most popular to warn them, they responded they only have to collect for Tennessee and Kentucky.o_O The need better tax lawyers in Kentucky.
 
dogtown tom said:
Uh..........how do you know?:scrutiny:
I know of three Florida retailers that do.
Since the South Dakota vs Wayfair decision, many states require out of state retailers collect sales tax on purchases shipped to their state. Any retailer who isn't "versed" may find himself in hot water from a place he's never been.

That said, many states have a threshold that does not require collecting by the retailer until his sales to that state meet the threshold. Texas, for example, its less than $500,000 in the preceding twelve months. Meaning if you sell $499,000 worth of guns to Texans you dont need a TX sales tax permit or need to collect and remit the 8% to the Texas Comptroller. Hit $500,000? You owe.

I know of several internet retailers that could be on the hook for $$$$$ because they aren't charging/collecting/remitting as required. I emailed one of the most popular to warn them, they responded they only have to collect for Tennessee and Kentucky.o_O The need better tax lawyers in Kentucky.
Click to expand...

I think you get my point, but even if not you make my point for me...shipping to all these different states, with the different requirements, fees, and deposits, takes time and documentation, and we all know what that means...more cost to the store. Generally you add costs to the seller, they're going to at least try to pass the costs to the customer.
 
They couldn't get Capone for murder and other crimes so they used Tax evasion.
 
GNP said:
I think you get my point, but even if not you make my point for me...shipping to all these different states, with the different requirements, fees, and deposits, takes time and documentation, and we all know what that means.
Click to expand...

I am guessing GBs new owners knew exactly what they were purchasing.
 
Bottom line... if we want to use Gunbroker... we'll be paying that fee. Remember that the folks who oppose gun sales in any form will always be looking for ways to make it difficult to run a profitable business - if it has anything to do with firearms. Now if they only felt the same way about people who commit crimes using guns...

The difference between profit and loss is pretty simple... the difference between being barely profitable and actually running a successful business is why most businesses don't have a long life. Me? I'd like to see Gunbroker succeed...
 
 
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