Gunbroker sales tax

View · by **LarryFlew** on Thu Dec 03, 2020 3:37 pm

Starting Jan 1 GB will be charging sales tax on all sales.

https://support.gunbroker.com/hc/en-us/ ... 0800233069

View · by **Holland&Holland** on Thu Dec 03, 2020 9:32 pm

LarryFlew wrote:Starting Jan 1 GB will be charging sales tax on all sales.

That sucks

View · by **BigDog58** on Fri Dec 04, 2020 12:01 am

It seems like the only way to avoid excess government taxes, is through face to face, cash transactions.

What sucks is that with most items being sold on GB taxes were already paid, when the items were originally purchased.

Just more government overreach.

View · by **gun_fan111v2** on Fri Dec 04, 2020 12:20 am

How can GB collect taxes if they are not the seller? Sellers can just pocket the taxes they collect...

View · by **Rip Van Winkle** on Fri Dec 04, 2020 6:03 am

In their defense, they're probably under a lot increased scrutiny by Kieth Ellison type state Attorney Generals, and are fearful of being sued out of existence.

View · by **Holland&Holland** on Fri Dec 04, 2020 7:42 am

gun_fan111v2 wrote:How can GB collect taxes if they are not the seller? Sellers can just pocket the taxes they collect...

That's a bingo!

View · by **Rodentman** on Fri Dec 04, 2020 8:35 am

A lot of Ebay sellers are collectiong MN tax claiming that it is now the law. Some do and some don't. I wonder if that $ gets remitted to the State.

View · by **xd ED** on Fri Dec 04, 2020 8:46 am

Rodentman wrote:A lot of Ebay sellers are collectiong MN tax claiming that it is now the law. Some do and some don't. I wonder if that $ gets remitted to the State.

I think that's an ebay requirement. I don't do a lot of buying on ebay, but it seems universal now. Once it was just collected from in-state businesses. What becomes a pain- whether ebay, or other online business, is when a seller/ merchant attempts to collect tax on non-taxable items, and the bs one needs to go through to get it resolved.

View · by **BigBlue** on Fri Dec 04, 2020 9:49 am

As noted above, it doesn't make sense that GB could collect taxes when it isn't the seller. It could mandate that sellers using the platform collect the tax themselves as a condition of use. Or it could switch to a model where GB is the proxy seller (like eBay and Amazon for 3rd party sellers) that takes payments and handles taxes. But I don't think it can just collect tax on a transaction that they aren't handling.

BB

View · by **gun_fan111v2** on Fri Dec 04, 2020 10:17 am

Exactly. Those other platforms also process 100% of the payments through their systems - they handle all the “cash”. Most smaller GB sellers don’t even use GB checkout. I wonder if that now becomes mandatory as well...

View · by **INOR** on Fri Dec 04, 2020 12:42 pm

2018 US Supreme Court case originating out of South Dakota. South Dakota v. Wayfair, Inc., 138 S. Ct. 2080 (2018). Changed state tax nexus rules on online marketplaces basically giving them a taxable presence in a state even without having any physical presence in the state. Wayfair ruling looked at online marketplaces with at least $200k of sales into SD (their particular threshold at the time) but in the time since the SC ruling, states have been quick to lower that to basically no threshold. Applies also to "marketplace facilitators" in this case like GB. Even though they aren't the seller, they facilitate the transaction and act as an agent of the real seller. So they end up having to collect sales tax on behalf of the seller and remit it on seller's behalf as well. By the way, it's very much against the law to collect sales taxes from customers and not remit it. That's a felony and states prosecute that as theft. Sucks but it's the new online world. It was inevitable.

View · by **Rodentman** on Fri Dec 04, 2020 11:09 pm

I was searching for a few coins to complete my Carson City mint Morgan dollar collection. I had to pay tax on Ebay on 2 but not a third one. These are hard to find (1879, 1889, and 1893) and costly. BFD, at least I got the collection completed.

View · by **LarryFlew** on Sat Dec 05, 2020 8:49 am

Rodentman wrote:A lot of Ebay sellers are collectiong MN tax claiming that it is now the law. Some do and some don't. I wonder if that $ gets remitted to the State.

Ebay collects it and has for almost a year. No longer seller collecting it.

https://support.gunbroker.com/hc/en-us/ ... 0800233069

Interesting note: Ebay chargers sales tax based on shippers address where GB will be charging sales tax based on buyers address (which makes more sense).

View · by **INOR** on Sun Dec 06, 2020 7:29 am

https://www.pwc.com/us/en/services/tax/ ... pdate.html

This article briefly summarized what states have been doing post-Wayfair decision. Wayfair was about online marketplaces but it opened the door to marketplace facilitators. Which, by the way, increases their costs significantly which is also why you’re likely to see fees or fee increases.

Sent from my iPhone using Tapatalk

View · by **LarryFlew** on Thu Dec 31, 2020 8:36 am

Notice from GB. Looks like they got it right this time charging the receiving state sales tax.

"As previously communicated, GunBroker.com will be collecting and remitting sales tax in several states beginning January 1, 2021.

Subsequent to the Supreme Court Wayfair decision, several states have enacted sales tax laws designed to target companies like Amazon. Laws in some states apply to GunBroker.com as well. GunBroker.com will be required to collect and remit sales tax on items sold or shipped into one of these states. State tax (if applicable) is calculated based on the ship-to address of the order."