Is paying sales tax at conventions the standard? 2 2

[FSF]

For instance, if I buy a $1000 at comic con, should I expect it to be closer to $1100 or is it assumed that the tax is baked in?

[ADAMANTIUM]

40 minutes ago, FSF said:

For instance, if I buy a $1000 at comic con, should I expect it to be closer to $1100 or is it assumed that the tax is baked in?

In my experience it depends on the dealer and how you pay....

Cash I've had them want tax and credit card I've had them charge a card fee... I just couldn't win last con

 

Edited June 8, 2018 by ADAMANTIUM

[kav]

Tell them 'I hope you are reporting this income to the state because I will be.'

[badback83]

This definitely depends upon who you buy from.  In my experience, I’ve always paid cash and not once has someone charged me tax at a show.  

Most of the full time dealers I buy from at shows keep a list of what has sold and for how much.  Maybe this is for tax reasons or inventory control or just to know how much is being made at the show.  I suspect it’s probably a combination of those.

[CatskillMike]

Charging a fee to use a credit card is a violation of TOS between the vendor and the credit card company. 

[celluloidbuff]

New rules at the register

Starting Jan. 27, 2013, merchants can charge you extra for paying by credit card. This marks the second big change in card rules in two years, coming on top of the Durbin Amendment, which was mainly aimed at debit cards but also affected credit card transactions. Here is a review of what can now happen at the register.

What merchants can do:

• Charge you extra for paying with any MasterCard or Visa card, up to 4 percent initially.*
• Offer discounts for paying with cash, check or debit (PIN).
• Impose a surcharge for paying with a particular type of MasterCard or Visa.*
• Require a $10 minimum for credit card purchase.

What merchants must do:

• Disclose any credit card surcharges in signs at the entrance and near the register.
• Detail the extra fee on your receipt.

*Except 10 states where prohibited: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas. Sources: Electronic Payments Coalition, court documents

_________________________________________________________________________________________________________________________________

When I ran my computer repair business, I never added a surcharge for use of credit cards. I just considered it a cost of doing business, and it was legal to deduct those fees the credit card companies charged you for the interchange as an expense when you prepared taxes.  Being able to use a credit card was sometimes the only option a consumer had, because many didn't have the spare cash (sad, I know) to afford a computer repair without using their cards.  As a consumer, I don't like paying extra for the convenience of using a card, especially given that I'm already paying a percentage for the privilege to begin with.  

 

Edited June 8, 2018 by celluloidbuff

[pemart1966]

Interesting reading below...don't know how factual it is...https://blog.taxjar.com/festival-sales-tax/

[classicaaron]

I have never been charged tax when paying cash regardless of the dollar amount.  lets face it dealers work like waitresses where 90% of income isn't reported.  credit card transactions almost always get tax added on as these charges are traceable and always reported for taxes.  so if they don't charge tax they will end up eating it out of the sale price themselves.

 

[F For Fake]

Similar to other posters, I don't think I've ever paid tax on a cash purchase at a con, but I have paid it when using a card.

[Pirate]

It's a scam to get more money.

[blazingbob]

42 minutes ago, Pirate said:

It's a scam to get more money.

?  There are shows where you cannot setup without a valid sales tax number.  And if there is one agency you don't want after you right after the IRS it is the State Sales tax agency.

New Orleans collects right at the show.  

Edited June 8, 2018 by blazingbob

[crazyhips]

I personally think it should be factored into the price. The bigger issue is whether or not vendors can even run a credit card on the convention floor.  I passed on some big purchases at Emerald City because many vendors couldn't get a signal to run a transaction and I really don't feel comfortable walking around with a few thousand in cash.  Disappointing because I would rather buy at a con versus online.   

Edited June 8, 2018 by crazyhips

[Pirate]

55 minutes ago, blazingbob said:

?  There are shows where you cannot setup without a valid sales tax number.  And if there is one agency you don't want after you right after the IRS it is the State Sales tax agency.

New Orleans collects right at the show.  

All people who sell merchandise at shows should have a sales tax ID number and pay their taxes.  The OP was asking if they do it and the general answer is no, they build it into the cost of the items.  I personally feel when someone at a show does, something fishy is going on.

[1Cool]

Great - now buyers want sellers to offer books at 20% less than usually sells for on E-Bay and eat 7% in sales tax on all purchases.  Sign me up for the next Con!

I do agree it's nice to have one price but in our society the sales tax is almost always added to the end price so why shouldn't comic sellers do the same?

Edited June 8, 2018 by 1Cool

[James J Johnson]

17 hours ago, kav said:

Tell them 'I hope you are reporting this income to the state because I will be.'

Collecting sales tax really has little bearing to indicate income tax. Theoretically, you can gross $1 million slate sales taxable items, and whether you netted $1.00 after expenses, or $999,999 after expenses, you still owe your state the sales tax on that $1,000,000 in taxable sales!  Which at an average of 8% is $80,000. What you owe them has nothing to do with your income. You're basically a collection agent. You don't charge sales tax, you collect it and then you're supposed to forward those collected funds to the state on your sales tax forms. Of course, many that collect sales tax are doing so for their kitty. It goes into their pocket instead of aside for the state sales tax division.

[justafan]

2 hours ago, crazyhips said:

I personally think it should be factored into the price. The bigger issue is whether or not vendors can even run a credit card on the convention floor.  I passed on some big purchases at Emerald City because many vendors couldn't get a signal to run a transaction and I really don't feel comfortable walking around with a few thousand in cash.  Disappointing because I would rather buy at a con versus online.   

This is my main discouragement for all cash transactions.  I usually bring enough for 1 or 2 large purchases where discount in CC fees is enough to merit using cash but I've heard dealers at a few cons talk about guys literally walking around with sacks full of cash in excess of $50k upwards to possibly $100k or more and spending it.  Now that must be a great show for the dealers that make those sales but I'd be hyper-paranoid about anyone who got too close to me.  One dealer had one of these guys basically pay full ask for the books they bought.  No haggling, just asked and paid.  I wonder if money laundering has made its way into comics or OA?

[the blob]

43 minutes ago, justafan said:

This is my main discouragement for all cash transactions.  I usually bring enough for 1 or 2 large purchases where discount in CC fees is enough to merit using cash but I've heard dealers at a few cons talk about guys literally walking around with sacks full of cash in excess of $50k upwards to possibly $100k or more and spending it.  Now that must be a great show for the dealers that make those sales but I'd be hyper-paranoid about anyone who got too close to me.  One dealer had one of these guys basically pay full ask for the books they bought.  No haggling, just asked and paid.  I wonder if money laundering has made its way into comics or OA?

Nowadays if you are driving to the con and get pulled over at a traffic stop the cops may decide the $3K in your pocket is to buy drugs or from the sale of drugs and not to buy a reader Amazing Fantasy 15.

[blazingbob]

4 hours ago, crazyhips said:

I personally think it should be factored into the price. The bigger issue is whether or not vendors can even run a credit card on the convention floor.  I passed on some big purchases at Emerald City because many vendors couldn't get a signal to run a transaction and I really don't feel comfortable walking around with a few thousand in cash.  Disappointing because I would rather buy at a con versus online.   

I was able to run cards at the show.

[FSF]

4 hours ago, 1Cool said:

Great - now buyers want sellers to offer books at 20% less than usually sells for on E-Bay and eat 7% in sales tax on all purchases.  Sign me up for the next Con!

I do agree it's nice to have one price but in our society the sales tax is almost always added to the end price so why shouldn't comic sellers do the same?

First off, it's not normal to charge tax at collectibles trade shows.  That's how it's always been and seems to be today.  So Id on't thing of sales tax at shows as being "almost always added".  In fact, I consider them rarely added, even when I've often paid by credit card, albeit they usually want the fees grossed up. 

Also, I'm not familiar with comic cons, but in cards and coins, buyers don't expect sellers at conventions to be selling at a discount to eBay.  In fact usually a fair amount more.  Unless you're referring to sellers who overprice on eBay as a matter of course and rarely ever actually sell anything.

[FSF]

3 hours ago, justafan said:

This is my main discouragement for all cash transactions.  I usually bring enough for 1 or 2 large purchases where discount in CC fees is enough to merit using cash but I've heard dealers at a few cons talk about guys literally walking around with sacks full of cash in excess of $50k upwards to possibly $100k or more and spending it.  Now that must be a great show for the dealers that make those sales but I'd be hyper-paranoid about anyone who got too close to me.  One dealer had one of these guys basically pay full ask for the books they bought.  No haggling, just asked and paid.  I wonder if money laundering has made its way into comics or OA?

So do dealers usually not comply with the cash transaction reporting requirements where if someone buys a $15K comic for cash, they don't file a SAR (Suspicious Activity Report) on the transaction?