Sales tax on Heritage invoice?

[shaunsteig]

just went back and reviewed my prior Heritage invoices. I've never been asked to pay sales tax on a Heritage lot, although I've only won things in their internet/phone auctions, not their Signature auctions. I lived in MA until last year, and now since then in RI. I agree though, that tacking on that % would make a sizable difference to the cost, and thus one's limit bids, on a lot, and that if HA changed their policy (even if due to a state law which is out of their hands) that they should be more clearer and forthright about letting prior customers know about the change.
--S

[oldjudge]

Charging this tax is contrary to their Terms and Conditions. I am being charged the tax in Connecticut. Perhaps this is an error--I would not pay until chatting with customer service tomorrow. Interesting, my invoice was up on their web site and has now been taken down. Perhaps they are being corrected.

[Leon]

Tax laws are tax laws. I wasn't able to take a Heritage Live winning a few years ago, in person when I won it, because of tax laws. I am quite sure that whatever the law is, is exactly what is going to happen to each invoice. It's not a debate and there won't be a gray area on this. I would just hang tight and speak with them if there is a question.

[batsballsbases]

I paid it this time but my memory will be very long for the next time!

Also curious since this has happened will REA or any of the other auction houses be charging sales tax? Leon since you are also in TX and run auctions do
you also fall under the same guidelines?

[oldjudge]

If Heritage does charge tax and other auctioneers do not, why would anyone ever consign to Heritage? The tax is effectively coming out of the consignor's realization.

[oldjudge]

Here is the clause from the terms and conditions:

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,
unless appropriate permits are on file with Auctioneer. (Note: Coins are only subject to sales tax
in California on invoices under $1500 and in Texas on invoices under $1000. Check the Web site
at: h ttp://coins.ha.com/c/ref/sales-tax.zx f or more details.) B idder 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, 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.


Doesn't sound like taxes are due if you live outside a state where Heritage has a physical presence.

[Runscott]

Originally Posted by oldjudge

Here is the clause from the terms and conditions:

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,
unless appropriate permits are on file with Auctioneer. (Note: Coins are only subject to sales tax
in California on invoices under $1500 and in Texas on invoices under $1000. Check the Web site
at: h ttp://coins.ha.com/c/ref/sales-tax.zx f or more details.) B idder 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, 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.


Doesn't sound like taxes are due if you live outside a state where Heritage has a physical presence.

That's how I understand it. Basically, it's not up to the state of Texas to collect taxes in other states - that's up to the 'other' states. Heritage has no physical presence in the state of Connecticut, so they can't charge you tax. If they do, you can request a refund from the state of Texas. If you were to visit Texas and buy things that had sales taxes, you could do the same thing - request a refund for all sales tax at the end of the year, then pay the 'use' tax on these items that Connecticut would charge (if any).