[BobC]

Originally Posted by Topnotchsy

Thanks everyone for the replies.

I have sold cards on eBay myself and through PWCC, but at this point much of my collection is memorabilia and eBay is tricky for items like that. Auctions often don't get the eyeballs and BIN's can sit forever. (I know because I've been able to buy some really nice items on eBay for far below auction house prices...)

When it comes to selling at the auction houses it sounds like the key thing is to negotiate in advance, particularly if an item is in high demand and/or does not require much work (it is already authenticated and is a relatively standard item...)

Can someone explain (or point me in the direction) of what a resale permit is? Is it something that as a collector who also sometimes sells items can reasonably get? If I understood correctly resellers don't pay sales tax. Is that correct?

Thanks

You are probably referring to what is maybe more commonly known as a tax exemption certificate. Pretty much every state in the U.S. has a sales/use tax on their books, which charges a tax based on the selling price of certain items. The sales/use tax is normally only charged to the final buyer/consumer of the product. Like when a car dealership sells a car to a consumer, then and only then is sales tax charged on the final sales price. No sales tax is charged on all the parts the car manufacturer bought to include in the assembly of the car, nor is the dealer selling the car charged sales tax when they originally acquired it from the car manufacturer for resale. Most states require the party selling an item to someone who is exempt from paying sales tax to obtain a signed sales tax exemption certificate from the party purchasing the item to document that they are not liable to pay sales tax on what was purchased because it is part of a manufacturing process or because they are a wholesale re-seller and not the final consumer. If not for this exemption, the cost of items we buy would be ridiculously higher because of all the sales tax being charged on every step in the process of making and re-selling of products. So to answer your question, no, re-sellers normally do not pay sales tax on items they purchase for resale.

BobC