New Heritage State Sales Tax

[conor912]

Sorry if this was already discussed...but I just noticed this on their site:

For Sports Collectibles: Effective September 1st, Heritage Auctions is required by state law to charge applicable sales tax on any items in this category delivered to addresses in the following states: Colorado, Massachusetts, Michigan, Oklahoma, Rhode Island, Washington. Exemptions include dealers with valid sales tax numbers who are purchasing for resale and who furnish us with a properly completed resale certificate, for the states listed above. See paragraph #25 in our Terms and Conditions for more information.

NOTE: Please visit our other categories regarding other states with applicable sales tax.

[bxb]

Thanks for sharing, I missed that.

I will lower my bids accordingly.

[perezfan]

As a resident of Washington, I will also be lowering my bid amounts by 10%.

It is already tough to win anything in Heritage. This will make it quite a bit more difficult.

[rainier2004]

Are other AHs following suit on this?

Im in MI and no new laws have passed on this issue since a couple years ago, so is REA, LOTG and others doing this as well? HA just kind of slipped it in there on some lots, not all though.

[BobC]

There have been other threads that touched upon this sales tax issue in the past. It probably doesn't have anything to do with new taxes being passed in any of these states. What likely occurred is that Heritage opened an office or started paying someone in those states, giving them nexus in those states now to have to start billing and collecting sales tax.

Or, those states are modifying their sales tax nexus rules to more or less copy those of South Dakota from the recent Supreme Court ruling in the South Dakota case against Wayfair. This just came out a few months ago., back in June I believe. In fact, I know for certain that Michigan already went ahead and modified their sales tax nexus requirement to more or less agree with the South Dakota rules, effective 10/1/18. Not sure of the reason for the other states listed, but for someone as big as Heritage, it will most likely end up being subject to collecting sales tax is pretty much every state that has a sales tax, sooner than later.

[Leon]

My guess is that in the next 5'ish years there might be sales tax collected by all auction houses shipping everywhere.