Sales Tax?

[pencil1974]

So I just got an email starting June 1, that Heritage will be charging Illinois (where I live) sales tax on their auctions. Is this happening across all auction houses and states? As that is adding close to 10% on top of the 20% most auction houses charge for their fee. I see myself not bidding as often as most items I typically by it would add hundreds to the total.

Just wanted to see if this was a universal change for everyone or if Illinois was just getting screwed. This sucks as I think this is where Leon is going to be selling his collection this summer and now I have to really think on what/if I want to bid.

Sorry if this has been discussed before.

Brad

[Jobu]

I am new to paying attention to auction houses and still have not won a lot though I have bid. I now live in Wisconsin and I can tell you that sales tax would have been part of my purchase had I won anything from BST Auctions (located in WI).

[Taxman]

Have it shipped to a trusted friend that lives in another state.

[vintagetoppsguy]

How does Heritage charge Illinois sales tax when they are based in Texas?

[4815162342]

http://en.wikipedia.org/wiki/Use_tax

[Taxman]

Individual to individual trades could fall under the "casual sale" transaction and thus sales/use tax would not be due.

[Bigb13]

Originally Posted by Taxman

Individual to individual trades could fall under the "casual sale" transaction and thus sales/use tax would not be due.

Do up know up to what amount is considered a casual sale?

[calvindog]

Lots of discussion about committing tax fraud on this thread, probably not the best thing to do on a public forum.

[Bigb13]

Originally Posted by Bigb13

Do up know up to what amount is considered a casual sale?

Does anyone know how high you can go and still be a causal sale from person to person?

[Sean1125]

.

[atx840]

I'm working on a fairly large trade with Johnny (who lives in NJ) and the card I'm sending him was recently won in REA (also in NJ). Canadian customs wanted to charge me $550 for taxes on the card and then for me to send it to Johnny would cost him another 7% NJ tax. On top of this another 7% on the cards he is sending me.

Even if REA sent it direct to Johnny or he picked it up they would still charge same state tax of 7%

Got to pay your taxes.

[CW]

Many states are now pushing online retailers to charge sales tax for their state. This is being heavily pushed to be imposed for all states.

Not to be a Debbie Downer, but if you live in Illinois you should've been paying a "use tax" on all goods purchased online.

http://tax.illinois.gov/individuals/faqs-use-tax.htm

You owe Illinois Use Tax if you purchase an item:

- for use or consumption in Illinois, from an out-of-state retailer who charges no Illinois Sales Tax or charges sales tax at a rate lower than the Illinois rate, and on which sales tax would normally be collected if you bought it from a retailer in Illinois.

Examples include: purchases from an internet site that does not charge Illinois Sales Tax, catalog purchases from an out-of-state retailer who does not charge Illinois Sales Tax; purchases through an out-of-state home shopping television network that does not charge Illinois Sales Tax; and items purchased while you were in another state from a retailer who charged sales tax at a lower rate than the Illinois rate or in a foreign country.

[dstudeba]

Heritage used to collect taxes in Texas, New York, and California because they have offices in those locations.

Looking at the rules from their National 2014 auction Rule 25 states that

"Lots delivered to you, or your representative in the States of Texas, California, New York or other states where the auction may be held, are subject to all applicable state and local taxes...."

However in their May 2015 Auction Rule 25 has been changed to

"Lots delivered to you, or your representative are subject to all applicable state and local taxes....

[Bliggity]

This happened to me yesterday for the first time on eBay. I bought a high-dollar item from a seller in Utah and it automatically added NC sales tax. Our legislature has been pushing this lately too. I was able to find the same item from a different eBay store that didn't add the sales tax, so I just bought it there instead. But it seems like the sales-tax train is picking up steam pretty quickly.

[pencil1974]

Yeah it sucks and I know its an evil that we all have to pay (at some point) but it just eats at the price when you are talking almost 30% added to what ever your final total is.

Now I know you can just say well bid less but then there is a competitive advantage for someone that does not have to pay the sales tax versus people that do (if that makes sense).

[Edwolf1963]

Curious if this is as a result of all states getting caught up on this and will be coming soon to an REA, Goodwin, Goldin, etc theater near you? Did anyone else get the Heritage letter for June 1st or just Illinois residents? Reason I ask is I haven't received any other AH notification of Sales Tax but HA. Did HA build a brick and mortar location here which is driving this now?

[pawpawdiv9]

This recent one, i have 0 in sales tax in GA.
But i found this on the site:
Sales Tax Information

Lots delivered to you, or your representative are subject to all applicable state and local taxes, unless appropriate permits are on file with Auctioneer. Bidder agrees to pay Auctioneer the actual amount of tax due in the event that sales tax is not properly collected due to: 1) an expired, inaccurate, or inappropriate tax certificate or declaration, 2) an incorrect interpretation of the applicable statute, 3) or any other reason. The appropriate form or certificate must be on file at and verified by Auctioneer five days prior to Auction, or tax must be paid; only if such form or certificate is received by Auctioneer within 4 days after the Auction can a refund of tax paid be made. Lots from different Auctions may not be aggregated for sales tax purposes.

Note: You will be billed for sales tax unless you have the appropriate documentation on file at and verified by Heritage five days prior to the auction. This documentation consists of a Resale Form (download now) and a legible copy of your state issued license or permit issued in your name and/ or the name of the business for an appropriately related category of merchandise. If you do not have this documentation on file with Heritage, you have 14 days from the date of the sale to complete the form and send/fax a copy of your license or permit to receive a refund for the tax. Lots from different Auctions may not be aggregated for sales tax purposes.

[TipTopBread]

RE: TAXMAN
Having the item ship to a friend in another state, I think won't accomplish anything! When the card is "picked up" by the purchaser and brought into Illinois, a USE TAX is then due the state same rate as the sales tax, NO ESCAPE!

[Sean]

Originally Posted by atx840

Got to pay your taxes.

Chris, I can tell that you aren't an American.