Auction Houses and Sales Tax

[Fred]

Does anyone know the rules on auctions and sales tax?

How many auction houses charge sales tax on top of the total hammer (including buyer's premium)?

Does anyone know the amount of sales tax that is supposed to be collected?

[x2drich2000]

Unfortunately, universal answers. Simplest answer, it all depends on where you live and where the auction house has a presence.

[Rhotchkiss]

Originally Posted by x2drich2000

Unfortunately, universal answers. Simplest answer, it all depends on where you live and where the auction house has a presence.

I believe, also: And how much business an AH does in your state (a nexus is created); and it’s not where you live, but the shipping address (which is usually where you live or work)

[Lorewalker]

Originally Posted by Fred

Does anyone know the rules on auctions and sales tax?

Unless you have a seller's permit or whatever they are called, you are supposed to be paying (via your federal tax return) your applicable local sales tax on all purchases you make that are from outside your home state.

How many auction houses charge sales tax on top of the total hammer (including buyer's premium)?

All charge sales tax for the states in which they have a physical presence. For most that is just one state but in Heritage's case it is many.

Does anyone know the amount of sales tax that is supposed to be collected?

Varies from state to state but once the most recent legislation is enforced your rate will be based on your state's sales tax rate unless you have a seller's permit thingy which makes the purchase exempt from sales tax being charged.

I am not an expert on this. I have been interested and read several threads on here repeatedly to get an understanding. I hope that I do understand it now. Again, to point out this is not a new tax structure. For many years the IRS has been asking us to report sales tax on all of our out of state purchases but since apparently nobody is doing it they are now trying to make it official by placing the burden on larger sellers to simply collect it on our behalf.

[Fred]

I guess the bottom line is that I'll have to treat the tax as if it is part of the buyers premium. If the house has a 20% BP then figure another 8% to 10% (I think they tax shipping charges also). Cripes that's a huge chunk when you consider your bid. For every hundred dollars bid then count on $130 in payment (not including the shipping).

[jfkheat]

I won a card in a recent auction. The winning bid was $240. Fees, shipping and taxes were $87.30. Almost 37% in additional charges.
James

[Leon]

Originally Posted by jfkheat

I won a card in a recent auction. The winning bid was $240. Fees, shipping and taxes were $87.30. Almost 37% in additional charges.
James

Hopefully you figured that into the equation. Kind of makes me think there has to be a better mousetrap.

[Republicaninmass]

Heritage is now/will be charging in all 50 states

This new sales tax requirement is due to a recent Supreme Court ruling that decided states can now require online retailers to collect sales tax on their behalf. We apologize for any inconvenience, this requirement will apply to all 50 states by the end of the year. Thank you for your email, please let us know if we can be of any further assistance.

[Nonsensename1]

Anyone familiar with how it works if you are shipping to a state like Oregon with no sales tax but from a state with tax?


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