Heritage will charge Sales Tax

[JollyComics]

Hello everybody,

 

Let you know that I have to pay Sales Tax after winning the items from Heritage Auction after June 1st this year.

 

I asked them if I have to pay the sale tax as being Illinoisan. They said yes but I asked them about Wisconsin address. They said there is no sale tax for Wisconsin residents because they don't have the office in Wisconsin. So I asked them if they have the office in Chicago. They said yes and it applies to the sale tax.

 

Maybe you will have to pay the sale taxes in California, Texas and NY because they have the offices and headquarters.

 

Please check with them to find out if you have to pay the tax or not.

 

 

[bababooey]

Here's a google link to a bunch of threads on this topic

collectors society "heritage tax"

[JollyComics]

That is an old news. I got the email from Hertiage two weeks ago.

[nearmint]

 

Maybe you will have to pay the sale taxes in California, Texas and NY because they have the offices and headquarters.

 

 

Yep, sales tax in those three states, unless you have a resale license.

[Bomber-Bob]

Hello everybody,

 

I asked them if I have to pay the sale tax as being Illinoisan. They said yes but I asked them about Wisconsin address. They said there is no sale tax for Wisconsin residents because they don't have the office in Wisconsin. So I asked them if they have the office in Chicago. They said yes and it applies to the sale tax.

 

 

It's not that I don't believe you but I am in Illinois, I have a Heritage account, and I have heard nothing about this ?

[rabidwolf]

Heritage has been charging sales tax for a while. I bought a book last year and had to pay sales tax which I found out after the fact. Thats the equivalent of almost another 10% commision fee that I was surprised with.

 

I honestly do not understand the advantage of consigning with Heritage with the buyers premium, sellers premium, and now sales tax. Thats almost 40% commission fes for a seller as a buyer is going to be savy enough to calculate all the additional fees, taxes etc.

[mintcollector]

Heritage has been charging sales tax for a while. I bought a book last year and had to pay sales tax which I found out after the fact. Thats the equivalent of almost another 10% commision fee that I was surprised with.

 

I honestly do not understand the advantage of consigning with Heritage with the buyers premium, sellers premium, and now sales tax. Thats almost 40% commission fes for a seller as a buyer is going to be savy enough to calculate all the additional fees, taxes etc.

 

Do you normally consign high value collections to auction? The reason I ask is because depending on the auction house and items in question the seller (i.e. consignor) can negotiate very favorable terms even getting part of the buyer's premium and paying no direct seller's fee to the auction house. This is all predicated on what you are consigning and the value of the overall items/collection.

 

Most consigner's cannot talk about it because some auction houses will state as part of the agreement with them that you cannot discuss the terms of your consignment. It's all part of being able to negotiate and recognize what you have.

 

I have seen $100,000 collections sold from various auction houses in which the consignor gets 110% of the hammer price. Other auction houses negotiate on a sliding scale. They will charge 20% of the first $50,000 or $100,000 and then much less for anything thereafter. It all depends on how much work is involved and te competition from other auction houses.

 

For instance, in the antiques world both bottle collecting and vintage advertising are on fire right now. Auction houses have to be willing to create favorable terms to get top quality consignments. If you have a $100,000 plus collection your negotiating power just increased versus the seller of one or two $1,000 plus items. In te antiques and collectibles world it pays to go big or go home.

 

Kind Regards,

 

Mint

 

[spidrvacc]

Good to know. I remember this from my corporate tax days. Know as "Nexus"

. if an entity has a corporate office in a state where the sale goes to they have to collect sales tax.

[JollyComics]

Hello everybody,

 

I asked them if I have to pay the sale tax as being Illinoisan. They said yes but I asked them about Wisconsin address. They said there is no sale tax for Wisconsin residents because they don't have the office in Wisconsin. So I asked them if they have the office in Chicago. They said yes and it applies to the sale tax.

 

 

It's not that I don't believe you but I am in Illinois, I have a Heritage account, and I have heard nothing about this ?

 

You should receive the email from them soon or you have to check in the spam folder.

 

Here is the email from Heritage (I believe it has to do with the comic books):

 

Dear (JollyComics as the buyer),

 

Effective June 1st, Heritage will be required by state law to charge all applicable sales taxes on any items delivered to Illinois addresses other than sales to dealers with valid Illinois sales tax numbers who are purchasing for resale and who furnish us with a properly completed Illinois resale certificate (exempt purchasers may furnish us with properly completed Illinois exemption certificates). NO sales tax is due for US Coins & Currency and World Coins & Currency. Please see paragraph #25 in our Terms and Conditions for more complete information.

 

Sincerely,

 

Heritage Client Services

3500 Maple Ave. 17th Floor

Dallas, TX 75219-3941

Bid@HA.com

1-800-872-6467

[JollyComics]

Heritage has been charging sales tax for a while. I bought a book last year and had to pay sales tax which I found out after the fact. Thats the equivalent of almost another 10% commision fee that I was surprised with.

 

I honestly do not understand the advantage of consigning with Heritage with the buyers premium, sellers premium, and now sales tax. Thats almost 40% commission fes for a seller as a buyer is going to be savy enough to calculate all the additional fees, taxes etc.

 

Do you normally consign high value collections to auction? The reason I ask is because depending on the auction house and items in question the seller (i.e. consignor) can negotiate very favorable terms even getting part of the buyer's premium and paying no direct seller's fee to the auction house. This is all predicated on what you are consigning and the value of the overall items/collection.

 

Most consigner's cannot talk about it because some auction houses will state as part of the agreement with them that you cannot discuss the terms of your consignment. It's all part of being able to negotiate and recognize what you have.

 

I have seen $100,000 collections sold from various auction houses in which the consignor gets 110% of the hammer price. Other auction houses negotiate on a sliding scale. They will charge 20% of the first $50,000 or $100,000 and then much less for anything thereafter. It all depends on how much work is involved and te competition from other auction houses.

 

For instance, in the antiques world both bottle collecting and vintage advertising are on fire right now. Auction houses have to be willing to create favorable terms to get top quality consignments. If you have a $100,000 plus collection your negotiating power just increased versus the seller of one or two $1,000 plus items. In te antiques and collectibles world it pays to go big or go home.

 

Kind Regards,

 

Mint

 

I thought Heritage does not charge the sellers. I asked them if it will apply the sale taxes to Wisconsin addresses. They said no. You should not have to pay the sale tax in PA. I find it oddly.

[mschmidt]

Hello everybody,

 

I asked them if I have to pay the sale tax as being Illinoisan. They said yes but I asked them about Wisconsin address. They said there is no sale tax for Wisconsin residents because they don't have the office in Wisconsin. So I asked them if they have the office in Chicago. They said yes and it applies to the sale tax.

 

 

It's not that I don't believe you but I am in Illinois, I have a Heritage account, and I have heard nothing about this ?

 

I got the email as well, Bob.

[JollyComics]

Hello everybody,

 

I asked them if I have to pay the sale tax as being Illinoisan. They said yes but I asked them about Wisconsin address. They said there is no sale tax for Wisconsin residents because they don't have the office in Wisconsin. So I asked them if they have the office in Chicago. They said yes and it applies to the sale tax.

 

 

It's not that I don't believe you but I am in Illinois, I have a Heritage account, and I have heard nothing about this ?

 

I got the email as well, Bob.

 

Bob, I believe you have the email somewhere in your account. It may be in your spam folder. You can always call them.

[mintcollector]

Heritage has been charging sales tax for a while. I bought a book last year and had to pay sales tax which I found out after the fact. Thats the equivalent of almost another 10% commision fee that I was surprised with.

 

I honestly do not understand the advantage of consigning with Heritage with the buyers premium, sellers premium, and now sales tax. Thats almost 40% commission fes for a seller as a buyer is going to be savy enough to calculate all the additional fees, taxes etc.

 

Do you normally consign high value collections to auction? The reason I ask is because depending on the auction house and items in question the seller (i.e. consignor) can negotiate very favorable terms even getting part of the buyer's premium and paying no direct seller's fee to the auction house. This is all predicated on what you are consigning and the value of the overall items/collection.

 

Most consigner's cannot talk about it because some auction houses will state as part of the agreement with them that you cannot discuss the terms of your consignment. It's all part of being able to negotiate and recognize what you have.

 

I have seen $100,000 collections sold from various auction houses in which the consignor gets 110% of the hammer price. Other auction houses negotiate on a sliding scale. They will charge 20% of the first $50,000 or $100,000 and then much less for anything thereafter. It all depends on how much work is involved and te competition from other auction houses.

 

For instance, in the antiques world both bottle collecting and vintage advertising are on fire right now. Auction houses have to be willing to create favorable terms to get top quality consignments. If you have a $100,000 plus collection your negotiating power just increased versus the seller of one or two $1,000 plus items. In te antiques and collectibles world it pays to go big or go home.

 

Kind Regards,

 

Mint

 

I thought Heritage does not charge the sellers. I asked them if it will apply the sale taxes to Wisconsin addresses. They said no. You should not have to pay the sale tax in PA. I find it oddly.

 

What I wrote had nothing to do with sales tax. I was responding to the original inquiry about how consignor's make money when consigning items. I have never paid a seller's fee to an auction house...ever.

 

Kindly,

 

mint