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Posted By: dogon Gun Broker Starts Collecting Sales tax 1-1-21 - 12/06/20 04:02 PM
Big changes coming our way if you're buying or selling on Gunbroker.

These changes will potentially have many down stream consequences for online guns sales.

Say thank you big brother! Read it & weep!

https://support.gunbroker.com/hc/en-us/a...-Tax-Collection
no biggie...we don laou no evil such as sales tax here in nh...
Quote:
What if I am a private seller and not a business?

Even as a private seller, you will have to collect and remit sales tax on your items. When the buyer completes the checkout process the appropriate tax will be calculated for the order. This tax will be paid to you as part of the payment you receive. In a manner similar to how you pay your GunBroker.com fees, GunBroker.com will bill and collect the sales tax amount from you. GunBroker.com, because of marketplace facilitator legislation, is required to report and remit the tax to the individual states for the transactions on the site.
Thanks for the heads up.
I just sent in my information. lets see how this goes.
I see a clusterf**k in my future if someone wants to return a gun...
Once again the vendors/FFLs seem to be going beyond what the law actually requires. Even in California, purchases from private parties are not subject to sales tax at point of purchase. CA residents are required to pay "use tax" on these purchases, but that is done as part of the annual state income tax filing. eBay has been charging sales tax for years on purchases from private parties, even though they are not required to do so. Easier for them, not necessarily good for us. Screwed again.
Goodbye Gunbroker.
amazon collects sales tax from buyers, based on tax of destination state...

figure gb will do the same, cept they will collect tax from sellers instead of buyers...

so, awl gb sellers have to do is to include appropriate sales tax along with shipping costs in their final invoice to buyers...

ware it could get fuzzy, is auditing gb to confirm that tax actually wound up in appropriate state coffers...


Good news for Guns International IMO
Originally Posted By: Gr8day
Good news for Guns International IMO


Until the AG from the buyer's State hits them with a lawsuit to collect on all sales for the last year?...Geo

Probably applies to our for sale forum here on Doubdlegunshop as well...Geo
Originally Posted By: Geo. Newbern
Originally Posted By: Gr8day
Good news for Guns International IMO


Until the AG from the buyer's State hits them with a lawsuit to collect on all sales for the last year?...Geo

Probably applies to our for sale forum here on Doubdlegunshop as well...Geo


George,

I retired as a CPA last month and based on my understanding of Guns International's marketing model I don't believe they have to collect sales tax because they are not involved as an intermediary in the sale. GI charges a fee to list the gun for sale whether or not the gun sells, charges no additional fee if the gun sells and the payment is directly between the buyer and the selling dealer.

If my understanding of GI's relationship to the sale is correct if they are responsible to collect sales tax then a newspaper is also responsible for sales through their classified ads.

Sales here are not subject to sales tax except directly to any seller who exceeds the number of transactions or dollar amount established by the various state implementation laws and thereby creates nexus.

https://www.gunsinternational.com/sell-guns-online/membership-fees.cfm
Amazon has a good page with links to all the states rules. This started rolling out about 1-2 years ago giant companies like ebay and amazon being the first forced to collect.

https://www.amazon.com/gp/help/customer/display.html?nodeId=202211260
I was shocked when eBay charged my buyer sales tax on a fly rod I sold a few months ago. The big sellers on eBay had been charging sales tax for a while; now, it seems all transactions are subject to it regardless of whether the seller is just unloading personal items.
Flychamps, I'm not a real lawyer anymore just and old retired one and I ain't looking up nothing about taxes for free. So you are probably right in your advice above.

The States have been working on internet sales tax for years. I think it is a pity...Geo
It would be interesting to see how they document a specific transaction and payment to the state. Gil
what would also be interesting is if internet sales brokers like gb and gi, would just simply refuse to collect sales tax on behalf of any state...and definitely not on any tea transactions...

due to the last election, civil rebellion is in the air...

why not tax rebellion, as well?
Unless things changed again when I was not paying attention, the SCOTUS case that allowed sales tax mandates on internet sales had an exception for certain vendors. Pretty sure it is still the case that vendors who ship less than $10K per year into any state do not have to collect sales tax for that state. Example: a vendor who ships less than $10K per year into Oregon does not have to collect sales tax for Oregon. Same vendor shipping more than $10K into California does have to collect sales tax and remit to CA. The big aggregators and sell-through operators like Amazon and eBay developed software for their vendors to track all the different state and local tax rules as a service to their sellers. They are probably applying that service across the board, without regard to dollar volume, because they have no way to track that volume though multiple sales channels. Anyone able to clarify?
You are correct that SCOTUS accepted the concept of a de minimis number of transactions or dollar amounts but did not specify what would qualify for de minimis - only that SD's $100,000 or 200 transactions met their standard.

The real abomination here is that the US Congress has not passed a law that would make filing these multiple state returns less of a burden for smaller business' that do not have a physical presence (nexus) in a state. Each state has their own filing requirements, forms and items taxed and the rates taxed, which makes filing a nightmare for small business ' filing in multiple states where they do not have a physical present.

The "marketplace facilitators" like Ebay and Gunbroker are considered the seller and must aggregate all transactions. They're stuck and we're screwed.
jes simply refuse to pay da damn tax...

we did hit befo, we can do hit agin...
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