internet sales tax?

[5of7]

I recently sold a handgun on gunbroker. It sold for $1249. I got a notification from gunbroker that there was a bill for $99.92 for sales tax. That is 8% on $1249. I didn't know about this sales tax in internet sales. How long has this been going on?

 

[hittman]

Been going on for a while.

They’re required by law to collect from you and pay sales tax for the state the item was sold to.

 

[Wyandot Jim]

I think it went into effect Sept. 2020.
It seems it would be a paperwork nightmare.

 

[Rick Courtright]

I recently sold a handgun on gunbroker. It sold for $1249. I got a notification from gunbroker that there was a bill for $99.92 for sales tax. That is 8% on $1249. I didn't know about this sales tax in internet sales. How long has this been going on?

Hi,

CA started collecting sales tax at the receiving FFL's level 3 or 4 yrs ago, maybe a little longer. This every seller on the Internet thing is a couple of years old. It's less onerous for big sellers or sellers using the likes of Gunbroker, eBay and similar platforms which take care of the tax computations for them, but smaller ones can be driven to the edge with the paperwork required. In favor of the smaller guys, there's a floor limit below which they don't have to collect the other State's taxes. None of my clients who sell out of state have hit it yet. PITA...

Rick C

 

[NikA]

It's a paperwork nightmare because GunBroker makes it that way. Other independent seller marketplaces (e.g., eBay) manage the same problem without issue and have done so for a couple years.

 

[RSIno1]

CA started collecting sales tax at the receiving FFL's level 3 or 4 yrs ago, maybe a little longer.

My receiving FFL would not charge me the tax if the seller personally shipped it and included a note that it was an occasional sale between private parties.
In the past CA had a spot on their tax return where you were to list your untaxed purchases from out of state and pay the tax. Then they went to demanding any company with a brick & mortar presence in the state had to charge tax on mail orders even if the purchased and shipping was generated out of state.

 

[Fox Mike]

States not charging internet tax: MT, WY, MO, OH, OR, PA, NM, KS, VA, AZ, OK, DE, NH, AK, TX, and FL

 

[Ray Newman]

FoxMike: I fixed it for you -- "States not YET charging internet tax: MT, WY, MO, OH, OR, PA, NM, KS, VA, AZ, OK, DE, NH, AK, TX, and FL."

Once they realize how much money they are loosing or could possibly be loosing, they will start charging internet sales taxes.

 

[Carrij]

I’m in Florida and they are already charging sales tax on my interest purchases.

 

[Fox Mike]

That was a list I had squirreled away. I am sure some have changed. Just used as an indicator how most ARE charging now. If you know of any listed that have changed, except FL, shoot me a PM.

 

[5of7]

States not charging internet tax: MT, WY, MO, OH, OR, PA, NM, KS, VA, AZ, OK, DE, NH, AK, TX, and FL

The gun I sold went to Fl.

 

[Cholo]

"GunBroker.com collects and remit sales tax on behalf of all sellers for sales in which the item is sold into the following states:"

https://support.gunbroker.com/hc/en-us/articles/1260800233069-Marketplace-Facilitator-Sales-Tax-Collection#h_01EZMZ8H7YKV0DZZVCNGAPAJQ9

 

[Kandy Kisses]

And now if you noticed gunbroker is charging up to 1 percent compliance fee to the buyer. supposed to be to pay the help for doing the paperwork. i am looking at more deals from local shops and gun shows

 

[hittman]

The gun I sold went to Fl.

FL is on Gunbrokers list.

 

[hittman]

And now if you noticed gunbroker is charging up to 1 percent compliance fee to the buyer. supposed to be to pay the help for doing the paperwork. i am looking at more deals from local shops and gun shows

Trickle down economics.

I once worked in an industry that suffered a government mandate forcing us to do some FREE work for consumers.

Should be no shock to hear that our prices went up across the board to all our customers; offsetting our estimates on how much we’d have to give away.

 

[Colonialgirl]

As usual, State greedy governments saying "OINK, OINK, OINK" give us the money !!

 

[ronto]

45 States now collect sales tax on internet sales. States that don't are: New Hampshire, Montana, Oregon, Alaska, and Delaware.