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Gunbroker to start collecting sales tax January 1st


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Just a heads up, on January 1st Gunbroker will be begin collecting sales tax from every purchase. So if you had your eyes on a big ticket item, and your state has a high sales tax, you might consider buying before the end of the year. 

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Email from Gunbroker,

 

GunBroker.com will be implementing the new Marketplace Facilitator Internet Sales Tax regulations on January 1, 2021. 

As a marketplace, GunBroker.com will be required to collect and remit sales tax on all sales according to the state law. State tax is calculated based on the ship to address of the order.

For details, check Marketplace Facilitator Sales Tax . Check back regularly for our most recent updates on the GunBroker.com Sales Tax process.

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I have to pay sales tax on Amazon sales here in Ohio.

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In Missouri,  sales taxes very from city to city and county to county.  We tend to shop at a large farm and home store because it's where they just have state sales tax that is much as half that of some place.  How will they handle that?

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The last gunbroker purchase I made was a money order directly to the seller.
Q: does this mean a separate fee from GB they collect from the buyer?
It seems that collecting tax from the seller would be impossibly complicated.

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1 minute ago, bgavin said:

The last gunbroker purchase I made was a money order directly to the seller.
Q: does this mean a separate fee from GB they collect from the buyer?
It seems that collecting tax from the seller would be impossibly complicated.

It appears they figured it out. 

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When I bought a Vaquero from GB, the seller refused to ship to CA because the red tape was too much of a PITA for him.
Now, those sellers are going to collect sales tax, fill out the required tax submissions and do quarterly uploads to all the various states where they sell?

Wow...
I gave up my resale license years ago, because the paperwork was not worth the hassle.
I can only imagine how this will sit with those who refuse to ship to gun controlled states, as this is FAR more PITA.

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38 minutes ago, Warden Callaway said:

In Missouri,  sales taxes very from city to city and county to county.  We tend to shop at a large farm and home store because it's where they just have state sales tax that is much as half that of some place.  How will they handle that?

Probably just charge the highest rate 

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15 minutes ago, bgavin said:

When I bought a Vaquero from GB, the seller refused to ship to CA because the red tape was too much of a PITA for him.
Now, those sellers are going to collect sales tax, fill out the required tax submissions and do quarterly uploads to all the various states where they sell?

Wow...
I gave up my resale license years ago, because the paperwork was not worth the hassle.
I can only imagine how this will sit with those who refuse to ship to gun controlled states, as this is FAR more PITA.

The seller was lazy, it takes two minutes to log on the CA DOJ website and get an authorization to ship letter. 
When I registered my FFL with the CA DOJ that was also very simple. 
Sellers that refuse to ship to CA just send more business my way. 

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It's just a matter of time before the sales tax collection happens everywhere.

 

EBay started and has been adding state after state to its list.

 

And it does not matter if it is a new item or an item that was purchased long ago and had tax paid on it at that time as well.

 

It's just a matter of time before it will hit us here in our classifieds.

 

Laugh about that now as you think back on all the other things you laughed at that you did not think would happen in your life time.

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1 hour ago, Warden Callaway said:

In Missouri,  sales taxes very from city to city and county to county.  We tend to shop at a large farm and home store because it's where they just have state sales tax that is much as half that of some place.  How will they handle that?

I wouldn’t be surprised if there’s an app for that.

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1 minute ago, Joke 'um said:

Just sell your gun for $1 to anyone you got an appropriate cash gift, that has nothing to do with guns, from recently.

Do that enough and you get a free extended stay at the Stone Hotel. 

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23 minutes ago, John Barleycorn, SASS #76982 said:

The seller was lazy, it takes two minutes to log on the CA DOJ website and get an authorization to ship letter. 
When I registered my FFL with the CA DOJ that was also very simple. 
Sellers that refuse to ship to CA just send more business my way. 

I fully agree.

As it turned out, the seller was a pawn broker in Junction City, KS.
He was an upstanding guy in every way.. just had his panties in a wad over the political issues of CA, etc.

I found another FFL two blocks up the street from him, who was willing to ship to me.
The pawn broker cheerfully refunded my prepaid shipping charge, then hand-walked the gun 2 blocks up to the FFL who shipped to me.

I can understand being outraged over the political baloney of CA, but cannot understand the willingness to throw away sales.
As you note... it sends more $$ your way.
 

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I went online to see if a new federal law prompted this but can find nothing. I know that many states enacted internet sales tax laws but found nothing mandating and across the board states sales tax requirement. 

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Thanks for the reminder!  I had a listing for sale expiring on the 2nd....moved it up to the 31st to save the money for the buyer and the hassle.

 

it says gunbroker will be sellers, private or business, for the tax based on the state they live in.  We don’t have to pay tax on used firearms here in WA so not sure how they separate that from new or if they do.  
 

gunbroker automatically bills the total tax, tax is paid to seller, gunbroker bills seller for tax in the same manner they bill normally.

 

 

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If you go to Indiana or Missouri or any other state bordering Illinois and buy a big ticket item, you have to pay Illinois sales taxes on it. Cars, appliances, and anything they can figure out you bought. There is a place on the Illinois state income tax for for you to fill in your out of state purchases to pay the tax. The tax rate when i bought my last car in Indiana while living in Illinois was based on the county where you lived. I think it was 5% in Indiana and 8% where i lived in Illinois and the dealer selling the car added it to the purchase.

Illinois has be trying to collect sales tax on anything bought out of state for years. I know different companies like Cabela's had to collect it on mail orders before they had a store in Illinois 20 years ago.

 

No surprise here, Just going to have to remember to add 10% tax on my purchase. (yes, in parts of Illinois it is that high now, Chicago is 10.25%.) (Mount Vernon, IL,  just west of me is 6.25% state, 5% county, 2.75% city. Total 9.5%). (Fairfield, IL, where I live is 7%.)

 

If I buy any more Colts on Gunbroker.com, I could get charged as much as $200 in tax depending on the price.

When I had a FFL and sold at the gun shows, they would give everybody that rented a table a sales tax form to fill out for show sales. That was over 20 years ago.

 

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26 minutes ago, Maddog McCoy SASS #5672 said:

If you go to Indiana or Missouri or any other state bordering Illinois and buy a big ticket item, you have to pay Illinois sales taxes on it. Cars, appliances, and anything they can figure out you bought. There is a place on the Illinois state income tax for for you to fill in your out of state purchases to pay the tax. The tax rate when i bought my last car in Indiana while living in Illinois was based on the county where you lived. I think it was 5% in Indiana and 8% where i lived in Illinois and the dealer selling the car added it to the purchase.

Illinois has be trying to collect sales tax on anything bought out of state for years. I know different companies like Cabela's had to collect it on mail orders before they had a store in Illinois 20 years ago.

 

No surprise here, Just going to have to remember to add 10% tax on my purchase. (yes, in parts of Illinois it is that high now, Chicago is 10.25%.) (Mount Vernon, IL,  just west of me is 6.25% state, 5% county, 2.75% city. Total 9.5%). (Fairfield, IL, where I live is 7%.)

 

If I buy any more Colts on Gunbroker.com, I could get charged as much as $200 in tax depending on the price.

When I had a FFL and sold at the gun shows, they would give everybody that rented a table a sales tax form to fill out for show sales. That was over 20 years ago.

 

The State the vehicle is titled in applies their sales tax. 

 

I bought a motor home in Ohio, drove it to Indiana for registration and paid Indiana sales tax on my purchase.  

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Some of the sellers, on GunBroker, already collect sales tax....so if the seller is charging sales tax, then, I presume GunBroker won't be also doing the same thing, and double charging the buyer? 

Looks like my days of using G.B. are going to be swiftly curtailed.

If I have to pay sales taxes on everything, then I might as well buy locally, and pay the tax anyway, minus the obscene shipping charges some of those

ya-hoos charge.

Let's see...cost of the firearm...then: shipping charges, 3%+credit card charge, FFL charge when you pick it up....and now....a sales tax charge for out-of-state purchases.

Yes, buying out of state may deprive your state of some extra revenue, that they would want/need to waste. 

 

The future ain't what it used to be.

 

W.K.

 

 

 

 

 

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19 hours ago, Warden Callaway said:

In Missouri,  sales taxes very from city to city and county to county.  We tend to shop at a large farm and home store because it's where they just have state sales tax that is much as half that of some place.  How will they handle that?

 

18 hours ago, Buckshot Bob said:

Probably just charge the highest rate 

Seriously, for GB , it’s a simple app problem much easier than it is for you and me.
 

 

 

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Don’t doubt it is but if they have to decide between the buyers residence and where the FFL is located and it’s different from county to county ? Who knows , different states may want it collected differently. 

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Prices on GB are beyond obscenely high now. Demand plus auction hype adds up quickly. Add more cost in sales tax? No thanks.

 

Just be patient and buy private FTF or pay local tax, supporting local business if ya gotta pay tax anyway. GB prices ain't the bargain it used to be.

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These charges are based on state laws.

 

GunBroker (like Amazon, eBay, Etsy, et. al.) is a Marketplace Facilitator. While states generally exempt small vendors from collecting sales tax (like a private sale of a used item to a neighbor), this type of law looks at aggregate annual sales of such small vendors when "facilitated" through a facilitator (GunBroker).

 

More details at:

 

https://blog.taxjar.com/marketplace-facilitator-explained/

 

The facilitator is responsible for collecting the sales tax when annual sales top a certain threshold (such as $250,000 per year). Many states already have laws requiring residents file an annual "use tax" return reporting out-of-state purchases on which sales tax was not collected. The use tax is the same amount as sales tax. This law is not well complied with...

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When EBay started collecting tax on items sold there they first showed the tax as a seperate transaction from the main transaction and now it shows as part of the regualar purchase transaction.  It is not listed by the seller in the add but shows up during the payment process.  I always thought that EBay would be the one who passes the tax along to each state rather than the seller.

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On June 21, 2018, The United States Supreme Court ruled 5-4 in South Dakota v. Wayfair that states can mandate that businesses without a physical presence in a state with more than 200 transactions or $100,000 in-state sales collect and remit sales taxes on transactions in the state.

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