Goodbye tax haven, Pennsylvanians! 1 1

[Zolnerowich]

I was highly dismayed to receive this email from HA this morning. Since there's a lot of boardies in The Keystone State, I figured I'd pass along this dismaying information. 

 

 

Please note: As of August 1st, Heritage Auctions will be required by state law to charge applicable sales tax on any items delivered to addresses in Pennsylvania for the following categories: Art & Antiques, Books & Historical Manuscripts, Comics, Currency, Entertainment, Historical, Jewelry, Timepieces & Luxury Accessories, Movie Posters, Nature & Science, Sports, and Stamps.  Exemptions include dealers with valid sales tax numbers who are purchasing for resale and who furnish us with a properly completed resale certificate for Pennsylvania. 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

 

[entalmighty1]

First time I've heard of Pennsylvania referred to as a tax haven.  The transplants I know call it Taxylvania.  

[Zolnerowich]

14 minutes ago, szavisca said:

Time to get a PO Box in Deleware or somewhere else close to ya for those big purchases...pretty sure they're a tax haven state.

[Sqeggs]

2 hours ago, entalmighty1 said:

First time I've heard of Pennsylvania referred to as a tax haven.  The transplants I know call it Taxylvania.  

Flat 3.07% state income tax rate and 1% local tax rate outside of Pitts and Phil (4% there).  6% sales tax with a fair number of exemptions, including for clothing. Property taxes are a bit high, although lower than in NJ. Overall, it beats the NJ-NY-CT alternatives. 

[Sqeggs]

2 hours ago, Zolnerowich said:

2 hours ago, szavisca said:

Time to get a PO Box in Deleware or somewhere else close to ya for those big purchases...pretty sure they're a tax haven state.

 Check the NYT archives for the fate of folks who have tried this to avoid NYC taxes. 

[Zolnerowich]

1 minute ago, Sqeggs said:

 Check the NYT archives for the fate of folks who have tried this to avoid NYC taxes. 

Party pooper!

[Zolnerowich]

2 minutes ago, Sqeggs said:

Flat 3.07% state income tax rate and 1% local tax rate outside of Pitts and Phil (4% there).  6% sales tax with a fair number of exemptions, including for clothing. Property taxes are a bit high, although lower than in NJ. Overall, it beats the NJ-NY-CT alternatives. 

So what you're saying is, comics, like clothing, are exempt? 

[Sqeggs]

1 minute ago, Zolnerowich said:

5 minutes ago, Sqeggs said:

Flat 3.07% state income tax rate and 1% local tax rate outside of Pitts and Phil (4% there).  6% sales tax with a fair number of exemptions, including for clothing. Property taxes are a bit high, although lower than in NJ. Overall, it beats the NJ-NY-CT alternatives. 

So what you're saying is, comics, like clothing, are exempt? 

All the "C" products should be exempt! 

[Zolnerowich]

27 minutes ago, Sqeggs said:

All the "C" products should be exempt! 

Agreed!!! Clothing, comics, and clowns!

[namisgr]

3 hours ago, szavisca said:

Time to get a PO Box in Deleware or somewhere else close to ya for those big purchases...pretty sure they're a tax haven state.

Yep, no sales tax here in the Small Wonder!

[BitterOldMan]

In California, residents are supposed to pay use tax on out of state purchases.  I pay use tax every year on my state income tax return. 

My old Fortune 500 company was audited by the IRS and California Franchise Tax Board every year.  The California Franchise Tax Board specifically looks for use tax.  I worked with the State of California auditor on the method used to estimate California use tax.

From the California tax code

"You may owe use tax on purchases you made from out-of-state or Internet sellers. Use tax is similar to the sales tax paid on purchases you make in California. You may report use tax on your income tax return instead of filing a use tax return with the California Department of Tax and Fee Administration"

[Robot Man]

Welcome to the club... Easy way out if you are a regular bidder. Get a PA resale licence. Everyone who sells at a show out there needs one. Get that number of HA's site and you won't have to pay the tax.

[Zolnerowich]

19 hours ago, Robot Man said:

Welcome to the club... Easy way out if you are a regular bidder. Get a PA resale licence. Everyone who sells at a show out there needs one. Get that number of HA's site and you won't have to pay the tax.

Sounds like a great idea. Are there any drawbacks? Don't you need to provide some kind of "proof" to qualify for a resale license?

[Robot Man]

3 hours ago, Zolnerowich said:

Sounds like a great idea. Are there any drawbacks? Don't you need to provide some kind of "proof" to qualify for a resale license?

Well, you do have to sell stuff and report your sales to them as well as pay the sales tax. I don't do a whole lot of shows and I am a little fish. But, I have found that if you file and pay them something, they are happy. The resale number can also be used for taxable sales that you purchase but not only this. You have to sell stuff and pay them the tax. I have used my CA resale # in other states including PA as well for purchases.

[Zolnerowich]

5 hours ago, Robot Man said:

Well, you do have to sell stuff and report your sales to them as well as pay the sales tax. I don't do a whole lot of shows and I am a little fish. But, I have found that if you file and pay them something, they are happy. The resale number can also be used for taxable sales that you purchase but not only this. You have to sell stuff and pay them the tax. I have used my CA resale # in other states including PA as well for purchases.

Thanks for the advice, RM!  I'll definitely look into this.