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Heritage auction- what states do they charge sales tax upfront?
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16 posts in this topic

CA, TX, NY

 

It's more than those three. They charge it here in Illinois and they don't even have an office here. They claim any state that they hold an auction in will, permanently, garner a sales tax. They even charge sales tax on the Buyer's premium and the shipping charges. Ridiculous.

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Illinois too.

 

California - two locals

Texas - two locals

No offices in all other states will not use the state sales tax.

 

What if there is only one Local?

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Illinois too.

 

California - two locals

Texas - two locals

No offices in all other states will not use the state sales tax.

 

What if there is only one Local?

 

I had multiple conversations with them about the sales tax. I even had an electronic conversation with their accountant. Here's the deal, nothing to do with an office. If they are issued a Tax ID in a state, for any reason, maybe they just once held an auction in the state... they will charge a sales tax. On advice of their accountant, they are being very cautious about this, taking no chances.

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CA, TX, NY

 

It's more than those three. They charge it here in Illinois and they don't even have an office here. They claim any state that they hold an auction in will, permanently, garner a sales tax. They even charge sales tax on the Buyer's premium and the shipping charges. Ridiculous.

 

Hard for me to bid on any of their auctions because of the high buyers premium and the sales tax and win because I live in Texas ..

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CA, TX, NY

 

It's more than those three. They charge it here in Illinois and they don't even have an office here. They claim any state that they hold an auction in will, permanently, garner a sales tax. They even charge sales tax on the Buyer's premium and the shipping charges. Ridiculous.

 

Hard for me to bid on any of their auctions because of the high buyers premium and the sales tax and win because I live in Texas ..

 

Legally, you'd pay either way. Most states have "use tax" laws that require you to pay sales tax directly to your state for out-of-state online purchases where sales tax wasn't charged by the vendor. Texas estimates they lose 2 billion annually by consumers that neglect to pay use tax when they file their state income tax.

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CA, TX, NY

 

It's more than those three. They charge it here in Illinois and they don't even have an office here. They claim any state that they hold an auction in will, permanently, garner a sales tax. They even charge sales tax on the Buyer's premium and the shipping charges. Ridiculous.

 

Hard for me to bid on any of their auctions because of the high buyers premium and the sales tax and win because I live in Texas ..

 

Legally, you'd pay either way. Most states have "use tax" laws that require you to pay sales tax directly to your state for out-of-state online purchases where sales tax wasn't charged by the vendor. Texas estimates they lose 2 billion annually by consumers that neglect to pay use tax when they file their state income tax.

 

By collecting sales taxes in only certain states, it puts the bidder residing in a tax state at a disadvantage. He has to be willing to pay 10 - 12 % more when bidding. If the sales taxes are truly owed, why not collect them on all transactions and level the playing field ? Also, the sales tax on the BP and the shipping is definitely debatable. Say, if I buy a new furnace, they only charge sales tax on the materials. When I get a haircut, all service, they do not charge sales tax at all, etc. etc.

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CA, TX, NY

 

It's more than those three. They charge it here in Illinois and they don't even have an office here. They claim any state that they hold an auction in will, permanently, garner a sales tax. They even charge sales tax on the Buyer's premium and the shipping charges. Ridiculous.

 

Hard for me to bid on any of their auctions because of the high buyers premium and the sales tax and win because I live in Texas ..

 

Legally, you'd pay either way. Most states have "use tax" laws that require you to pay sales tax directly to your state for out-of-state online purchases where sales tax wasn't charged by the vendor. Texas estimates they lose 2 billion annually by consumers that neglect to pay use tax when they file their state income tax.

 

By collecting sales taxes in only certain states, it puts the bidder residing in a tax state at a disadvantage. He has to be willing to pay 10 - 12 % more when bidding. If the sales taxes are truly owed, why not collect them on all transactions and level the playing field ? Also, the sales tax on the BP and the shipping is definitely debatable. Say, if I buy a new furnace, they only charge sales tax on the materials. When I get a haircut, all service, they do not charge sales tax at all, etc. etc.

 

I'm sure in the future, that will be the case (collecting it on all transactions). Congress has proposed passing something along those lines in the last couple of years ("Marketplace Fairness Act"), but it hasn't happened yet. Only a matter of time. Imagine having to pay an extra 10-12% on every eBay purchase, etc. Or worse, imagine being a small time seller who has to collect the correct local sales tax amount on every sale (with a different amount due depending on which of the 9000+ different tax districts in the country the customer lives in). :cry:

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