Quote:
Originally Posted by bobbyw8469
I just found out that Hunt Auctions is now charging sales tax on baseball cards. Now how does THAT work??? Wasn't the sales tax collected at the time of original purchase?? Does that mean that used product will ALWAYS have a tax every time you sell it?
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Hunt is not just charging sales tax on baseball cards, it is charging it on everything, depending on what state the seller they are shipping items to lives in. It is an indirect result of the 2018 SCOTUS case, South Dakota vs. Wayfair, where states have now been able to set specific standards for when online sellers are now obligated to collect and remit sales tax on items sold in states they otherwise have no physical presence in.
And unfortunately, yes, sales tax is also collectible on used items that are sold, even if again and again and again, as nauseum. Sales taxes are mostly collected on retail sales of tangible personal property. Auctions are just another form of retail sales. Nowhere do any sales tax laws I've ever seen give an exemption from sales tax just because the item being sold has been used. Sorry.
If you happen to be a retail dealer/seller of such items yourself, in a bona fide business, you can apply for a retail sales tax exemption and supply a copy of that form to Hunt, or any other auction house you might be looking to purchase items from (and that includes Ebay), and they will not charge you sales tax on any of your purchases because you are only buying them to resell them. Sales tax is only to be collected on the sales to the ultimate user of an item, not on someone buying merely to resell, or incorporate the item being purchased into something else to eventually be sold to an actual final user/consumer.