Quote:
Originally Posted by ricktmd
Great information from Bob. I do want to add that having a resale permit is for people running a business selling baseball cards or at least a part time dealer. In California (and likely other states) the last thing you would ever want is an audit from The State Board Of Equalization if you have been buying stuff with a permit for your own collection. The State Board of Equalization is unforgiving and their audits the most comprehensive. They may also share their information with the IRS or Franchise Tax Board. It is better just to pay the tax and the point of sale and factor that into your bidding. While I do agree it gives the dealer with a permit an edge in the bidding process the dealer with the resale permit has to charge/pay tax either at the point of purchase or when they sell the item. So theoretically it evens out in the end if the dealers abide by the sales tax laws
|
What Rick said.
Truth is, you don't want any state's sales tax division to come looking at you if possible. Some states can be worse than others, but all states are looking for revenue and if they suspect they can get some from you, they will try.
I have personally handled sales tax audits in both Ohio and New York state over the years, and advise many a client of sales and use tax rules and issues, including the completion of exemption certificates for single and multiple states. Sales tax rules and laws vary from state to state and believe me, an audit for sales tax in any state is not fun!!!