Fees when buying at an AH

[jrmartin]

I'm thinking of picking up a card from the auction that ends at Heritage tonight. So if I have this correct aside from the 20% buyers premium I would have to pay a shipping fee of $28.65 (the item is over $1000 with premium) plus an additional shipping fee of $5.95? Am I also responsible for sales tax even if I do not live in the same state? Basically after AH premium, shipping costs and sales tax I would be paying about 30% on top of the bid price. Does this sound correct or am I missing something?

[Snapolit1]

Originally Posted by jrmartin

I'm thinking of picking up a card from the auction that ends at Heritage tonight. So if I have this correct aside from the 20% buyers premium I would have to pay a shipping fee of $28.65 (the item is over $1000 with premium) plus an additional shipping fee of $5.95? Am I also responsible for sales tax even if I do not live in the same state? Basically after AH premium, shipping costs and sales tax I would be paying about 30% on top of the bid price. Does this sound correct or am I missing something?

And if you pay by credit card some AHs will tack on yet more percentage points. Don't recall Heritage.

Heritage charges those shipping rates because your little card may be packaged inside three other boxes and may come in a box large enough to hold a few bowling balls. May have to wade through 10,000 foam peanuts too. And scads of bubble wrap. These dudes could mail you 5000 eggs out of their carton and nothing would break.

As to taxes, if you live in same state as AH I think you get dinged, otherwise no.

If I buy a high ticket item from one of the large NJ based Ahs, I get hit with everything in sight. Who knows. . .could be close to 40%.

[Sean]

Heritage has offices in many states. If you live in a state in which they have an office, you will be charged the applicable sales tax.

[sushihotwings]

I forgot they had offices in many states. Does anyone have a list or link to what states Heritage has offices in?

[Peter_Spaeth]

Originally Posted by Sean

Heritage has offices in many states. If you live in a state in which they have an office, you will be charged the applicable sales tax.

And if not you are supposed to pay your state use tax, right?

[Sean]

Originally Posted by Peter_Spaeth

And if not you are supposed to pay your state use tax, right?

Sorry Peter, but I am neither an attorney nor an accountant, so I will not opine on your assertion.

[Rhotchkiss]

In my experience, you do not pay sales tax (or use tax) if you are not in a state where the auction has a physical presence.

[darwinbulldog]

For Heritage you have to pay sales tax in 3 states IIRC -- Texas, Florida, and I forget. Something north of the Mason-Dixon line I believe. Not my most helpful post, but just the best my memory can do these days.

[calvindog]

Originally Posted by darwinbulldog

For Heritage you have to pay sales tax in 3 states IIRC -- Texas, Florida, and I forget. Something north of the Mason-Dixon line I believe. Not my most helpful post, but just the best my memory can do these days.

New York.

[Sean]

Originally Posted by darwinbulldog

For Heritage you have to pay sales tax in 3 states IIRC -- Texas, Florida, and I forget. Something north of the Mason-Dixon line I believe. Not my most helpful post, but just the best my memory can do these days.

We pay the tax here in California as well.

[PiratesWS1979]

Don't forget Illinois! I've tried to forget but darn it, they just keep reminding me.

[bobbyw8469]

Bottom line...expect to pay thru the roof tonight. Congrats.

[darwinbulldog]

So it's the five largest states then? Pennsylvania, you better watch out.

[Edwolf1963]

Originally Posted by darwinbulldog

So it's the five largest states then? Pennsylvania, you better watch out.

I think they list somewhere on their site which states they have a presence in

[BobC]

Originally Posted by Rhotchkiss

In my experience, you do not pay sales tax (or use tax) if you are not in a state where the auction has a physical presence.

I am an accountant and if the auction house does not have what is known as a physical or business nexus in a particular state whereby they have to charge you sales tax, you as the buyer are generally required to still pay the applicable tax, except it is then referred to as a "use" tax. If you look up the laws in pretty much every state, it is not known as just a "sales" tax, it is mostly listed and known as "sales & use" taxes. The fact that the state doesn't come knocking on your door to collect the "use" tax doesn't mean you technically don't owe it.

[jrmartin]

Originally Posted by BobC

I am an accountant and if the auction house does not have what is known as a physical or business nexus in a particular state whereby they have to charge you sales tax, you as the buyer are generally required to still pay the applicable tax, except it is then referred to as a "use" tax. If you look up the laws in pretty much every state, it is not known as just a "sales" tax, it is mostly listed and known as "sales & use" taxes. The fact that the state doesn't come knocking on your door to collect the "use" tax doesn't mean you technically don't owe it.

How does that work for other goods purchased online such as from amazon?

[ValKehl]

You might be able to save the shipping charge by asking the auction house to allow you to pick up your winning at a show that will soon be taking place, such as the upcoming National at Chicago. I have been able to do this several times in the past, and in fact, I'll be picking up a card in Chicago that I won in the recent Goodwin auction.

[BobC]

Originally Posted by jrmartin

How does that work for other goods purchased online such as from amazon?

It normally doesn't matter what it is that you purchase, or who it is you purchase it from. In a state that has sales & use taxes, if you purchase anything that would normally be subject to sales tax if the seller was required to collect it, but they don't, you as the buyer would then technically be required to voluntarily pay the use tax to your state yourself. And that is not just for individuals, it includes companies and businesses also.

[tjb1952tjb]

Originally Posted by Sean

We pay the tax here in California as well.

What tax don't we pay???