Say it ain't so! GB to start collecting sales tax

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JT-AR-MG42

JT-AR-MG42

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I got an e-mail from GunBroker today informing me that starting April 1st they would
begin collecting sales tax for 36 different States on completed auctions.
How do you think this will affect sales?

JT
 
If you have revenue over a certain amount, you are required to collect it for the purchasing state, report it and pay it. Some small retailers are still not collecting sales tax, but regardless, you were supposed to self pay for years, which few ever did.

What it will probably do is breath some new life into local gun dealers that have had a sales tax disadvantage on pricing for years. Or you can move to a state like Delaware where there is NO sales tax.

Bob
 
rkittine said:
If you have revenue over a certain amount, you are required to collect it for the purchasing state, report it and pay it. Some small retailers are still not collecting sales tax, but regardless, you were supposed to self pay for years, which few ever did.

What it will probably do is breath some new life into local gun dealers that have had a sales tax disadvantage on pricing for years. Or you can move to a state like Delaware where there is NO sales tax.

Bob
Click to expand...

All good points. I wish more states were like Delaware; the income tax is a better way to raise revenue, IMO.
 
And Amazon is collecting sales tax. It's the wave of the future; local and state governments want that income and have been whining about it being unfair to the brick & mortar places who have to collect sales tax.

So they order the dot-coms to serve up some tax cheese to go with the whine ......:confused: :scrutiny:
 
The buyer pays, not the seller. Sooooooooooo, being a former buyer, I'll look elsewhere.

Bill
 
From gunbroker:

Since the Wayfair Supreme Court decision, states have been allowed to force sellers to collect sales tax for items sold into a state even if the seller has no physical presence in that state. Additionally, some states have enacted so called Marketplace Facilitator (MPF) laws in an effort to force marketplaces that perform the remittance of sales tax on behalf of the marketplace’s sellers.

These laws shift the sales tax collection and remittance obligations from the individual seller to the Marketplace Facilitator.

The GunBroker.com MPF States

On April 1, 2021, GunBroker.com will be adding to the list of MPF states. In addition to the original 8 states (in Red and Bold) GunBroker.com will collect and remit sales tax for an additional 36 states based on the address where the item is delivered (Ship To address).

Complete list:
Alabama
Arizona
Arkansas
California
Colorado
Connecticut
District of Columbia
Georgia
Hawaii
Illinois
Idaho
Indiana
Iowa
Kentucky
Louisiana

Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Nebraska
Nevada
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma

Pennsylvania
Puerto Rico
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming

All sellers, even individuals that are not businesses, are required to collect sales tax to meet the regulations. GunBroker.com will assist you with the calculation, collection and remittance of the sales tax due.

GunBroker.com will calculate the sales tax required and add it to the order during the checkout process. The tax calculation will be based on the Ship To address on the order. This is the location of the Buyer not the location of the Seller.

The calculation will include sales tax for the item plus any additional taxes imposed by that state on other things such as shipping or handling. Simply collect the order total payable due from the buyer.
Checkout process makes all this work easier. Learn more:

The joy of no tax mailorder is ending on April fools day unfortunately its no joke and tax reporting may be used to track and record firearm and ammo sales to both buyer and seller.
 
vintovka said:
On April 1, 2021, GunBroker.com will be adding to the list of MPF states. In addition to the original 8 states (in Red and Bold) GunBroker.com will collect and remit sales tax for an additional 36 states based on the address where the item is delivered (Ship To address).
Click to expand...

Thanks for finding that.
I do think it will have the effect of lowering bids (to various States tax percentage) on the more common guns anyway.

JT
 
vintovka said:
The joy of no tax mail order is ending on April fools day unfortunately its no joke and tax reporting may be used to track and record firearm and ammo sales to both buyer and seller.
Click to expand...
Another good reason to ditch them. Sent them an email to delete my account As I refuse to pay tax on an on line sale. I'll buy local if I have to pay the tax and keep the money local. To Vin and most everyone on Gun Boards, I miss conversing with you guys and a BIG shout out to all my buds on the TN/GA forum.
 
vintovka said:
The joy of no tax mailorder is ending on April fools day unfortunately its no joke and tax reporting may be used to track and record firearm and ammo sales to both buyer and
seller.
Click to expand...

You were always supposed to pay your use taxes on online purchases.
 
The trend toward listing on forum "traders" will be interesting. Seems some have forgotten that This country was based on overturning unfair taxation.
 
Well it was nice while it lasted.There will still be some deals and hard to find items online but times are changing. I bought my last 3 firearms from my 2 favorite locals. By the time I paid tax and transfer fees I came out about the same. Not to mention supporting the local business. They can also get me what I want if it's available and I can check it out before buying. I also have the ability to tell them what I am looking for and if they get one I get a call...
 
Several thoughts on this:
1. Since I collect the sort of items no longer made, I cannot just go down to my 'local' and buy a First World War rifle used by the nation of Pottsylvania at my whim. So the internet and the attendant folderol is one of my primary means of purchase.
2. The taxes collected are the sales tax of the purchaser's state. If such tax offends one - vitovka mentions 'unfair taxation' - one should address one's own state. I am not an unquestioning supporter of sales taxation, but I feel the sales tax - and income tax - I pay serves me better where I know live than where I used to live. Aside from that, it is a charge legally imposed upon the purchaser.
3. Avoiding paying taxes imposed is being a tax cheat. See your state government to change it.

Gun owner claim and generally are responsible and respectable persons. Obeying the law - with the possible exception of violating one's deeply and honestly held morality - is not responsible or respectable.
 
In Ca I’ve been having tax collected at the FFL when I do the transfer paperwork for quite a while. It’s one of those things I factor into the total cost (Along with shipping, transfer fees, etc.) when I set my bid.

I think everyone agrees that we don’t like paying gobs of taxes, but since one tax or another is the law in every State we call home it’s up to the voters there to change how tax is paid and on what.

Stay safe.
 
In Washington state we pay sales tax (about 10%, but we have no stae income tax) on gun purchases from online businesses. The tax is usually collected by the receiving FFL. There is no sales tax due if the gun is purchased from an individual or in a trade. So I wonder how Gunbroker is not going to collect tax if the auctioned gun is by a private individual and not a dealer?
 
Redcoat3340 said:
In Washington state we pay sales tax (about 10%, but we have no stae income tax) on gun purchases from online businesses. The tax is usually collected by the receiving FFL. There is no sales tax due if the gun is purchased from an individual or in a trade. So I wonder how Gunbroker is not going to collect tax if the auctioned gun is by a private individual and not a dealer?
Click to expand...

They will likely just be blanketed..
It would like be impossible for them to determine states that have different taxes per county, etc. Etc.
 
If GunBroker is following the laws of the states, I would rather they continue to do that than have a list of 36+ states to which its sellers are not permitted to ship. At least that still leaves the choice to buy up to me.
 
I'm in AZ. Bought one on gunbroker yesterday, before the April 1 date, so no tax.
It may have a good effect for local shops. For me, I always calculate the price, the tax and the shipping before I grab something online. If I have to pay all that, may as well get it locally.
 
Redcoat3340 said:
In Washington state we pay sales tax (about 10%, but we have no stae income tax) on gun purchases from online businesses. The tax is usually collected by the receiving FFL. There is no sales tax due if the gun is purchased from an individual or in a trade. So I wonder how Gunbroker is not going to collect tax if the auctioned gun is by a private individual and not a dealer?
Click to expand...
I live in Washington and sales tax is collected by the receiving FFL on all gun sales, whether the seller is a private individual or business. Out of state purchases are shipped to my FFL and I must pay not only the transfer fee, but sales tax on the invoice amount as well.
 
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