[rosebear]

I guess I would be ok with this if I was positive that the tax I paid made it back to the state I live in and wasn't just pocketed. Sellers can say they are now forced to collect it but who is responsible for seeing that they ever pay it out? I'm guessing that the majority of individual, non-business sellers on Ebay that charge tax never pay it. It is just a bonus to them.

 

[Grumpy one]

I guess I would be ok with this if I was positive that the tax I paid made it back to the state I live in and wasn't just pocketed. Sellers can say they are now forced to collect it but who is responsible for seeing that they ever pay it out? I'm guessing that the majority of individual, non-business sellers on Ebay that charge tax never pay it. It is just a bonus to them.

Or they pay it to the state the seller is in.

 

[SKB-Eric]

I guess I would be ok with this if I was positive that the tax I paid made it back to the state I live in and wasn't just pocketed. Sellers can say they are now forced to collect it but who is responsible for seeing that they ever pay it out? I'm guessing that the majority of individual, non-business sellers on Ebay that charge tax never pay it. It is just a bonus to them.

The way ebay does it - ebay collects the taxes and sends it to the states - the seller never gets that money so there is no monkey business.

 

[skeet_man]

I guess I would be ok with this if I was positive that the tax I paid made it back to the state I live in and wasn't just pocketed.

Gunbroker adds the sales tax to the SELLERS fee, and remits it to the state. The seller then recoups this money from the buyer, essentially making both the seller AND gunbroker middlemen for the sales tax. There is NO way for the selller to pocket the sales tax, gunbroker WILL get that money from the seller, and they will remit it to the state. If the seller wants to eat that $ and not collect it from the buyer it's up to them I suppose.

To explain it another way. You sell a gun for $1000. Buyer's sales tax is 8%. Gunbroker will bill YOU, the seller, for the final value fees PLUS 80 dollars in sales tax. When you invoice the buyer, that sales tax is included in the total, so you charge the buyer, gunbroker charges you, gunbroker sends the money to the buyer's state.

Sellers can say they are now forced to collect it but who is responsible for seeing that they ever pay it out?

The sellers aren't saying ANYTHING. The sellers have ZERO choice in the matter. Gunbroker is imposing this on the sellers because the states imposed this on gunbroker.

I'm guessing that the majority of individual, non-business sellers on Ebay that charge tax never pay it.

Ebay collects the sales tax to the buyer and remits it directly to the state, the seller never sees ANY of that money. Ebay is different from GB in that they are a payment processor as well, and have the ability to withhold the sales tax without having to add the extra step.

Or they pay it to the state the seller is in.

Sales tax has absolutely NOTHING to do with the state that the SELLER is in, it has EVERYTHING to do with the state the BUYER is in, and it is remitted to the state that the BUYER is in.

 

[skeet_man]

Florida is the one that's missing.

So it's currently everywhere but Alaska, Delaware, Montana, New Hampshire, Oregon, and Florida

 

[reyper]

This is going to hurt many sales. Rey

 

[rapid86]

I guess I would be ok with this if I was positive that the tax I paid made it back to the state I live in and wasn't just pocketed.

In my admittedly limited dealings with the sales tax department of a state (IL) I found that the only thing they really care about is if a buyer is paying funds labelled as a sales tax that they get it. They don't care if taxes are being collected on non-taxable items. More money for them.

 

[Jim Porter]

Some of you ain't gona like this but It's fair. I'm OK with it. I wonder why it wasn't set up like this from the start. If it had been nobody would be complaining about it now.
Bottom line..e-bay is killing a lot of small businesses. This won't stop that but it will level the playing field a bit.

And remember..sellers don't CHARGE tax, they COLLECT it. Lots of difference.
Ok now let me have It
Jim

 

[mg1polo]

I don't mind paying sales tax on NEW merchandise. I'll be damn, if I'll ever pay sales tax to anyone for a transaction between individuals on used items and I was a pretty high volume buyer and seller with over 60 transactions in this year alone. So long gunbroker.
I already ditched ebay.

 

[jktphd]

I haven't used eBay, Gunbroker (aka Scam Central) in many years. Don't miss them at all. They can keep their crappy, overgraded junk, their fees and their taxes. If I can't buy it in person I don't need it.

 

[amboy49]

Buying a high dollar gun now off Gunbroker will have a significant increase in the overall price. Until now buying a gun on Gunbroker could mean a significant price reduction if the sales tax wasn’t collected. Buy a $10,000 shotgun and the sales tax is a 7-10% additional cost.

Obviously the states are trying in every way they can to raise revenues - often to fund additional social programs. States like Illinois and California are essentially bankrupt for all intents and purposes. They need additional revenue to keep their political ship afloat - even if it’s only a temporary bailing of tje state ship that is sinking. The continuing to tax and spend mentality is resulting in ever higher deficit, reduction of investment bond ratings, one could argue only the richest people had money in the stock market. That’s no longer true now with the advent of 401k and pension funds investing in tje stock market.

The first time the stock market takes a real dip, like in 2008, the dip will be be felt across the full range of investors. We’re in for a helluva ride, Woodrow !

 

[headhunter]

It's a bunch of BS. Just another way to get after the gun guys.

 

[stocker1042]

Another angle to this argument...Gunbroker has hurt brick and mortar dealers as they always have had to charge sales tax. That $1000 gun mentioned earlier was always cheaper on Gunbroker over a brick and mortar store because there was no sales tax to be collected, new or used.

 

[skeet_man]

Another angle to this argument...Gunbroker has hurt brick and mortar dealers as they always have had to charge sales tax. That $1000 gun mentioned earlier was always cheaper on Gunbroker over a brick and mortar store because there was no sales tax to be collected, new or used.

That was the case with every online store selling every conceivable product, it was not something exclusive to Gunbroker.

Ultimately, the day of the brick and mortar store is coming to a close, you can see that clear as day with the abject collapse of shopping malls. Personally speaking, unless it's something I had to have TODAY, I'm more likely to purchase something online and have it delivered even if it is exactly the same price in the store, not worth the hassle of getting in the car, driving across town, finding what I want, checking out, and driving home, wasting an hour or more, when I can accomplish the same thing in 2 minutes sitting at my computer. Hell, I'd even pay a little bit more for something online if it is less of a hassle.

Anyone who thinks the sales tax situation "levels the playing field" is missing the big picture. Even with sales tax included both ways, it's almost always cheaper to buy online, and a hell of a lot more convenient. Personally one thing the sales tax imposition has caused for me is to second guess if I REALLY want/need something. I always calculate that into the final price, and sometimes when all is said and done it just isn't worth it (it can turn a good deal into a not-so-good deal esp on ebay and gunbroker). The ironic thing at the end of the day is that for the states this likely ends up being a near zero sum game, sure they get more money from sales tax, but they are probably losing an equivalent amount in income tax from the seller due to decreased sales.

Sadly, many brick and mortar stores have patently refused to come into 1998 and have even a minimal web presence. Most of the gun shops in my area barely have a functional rudimentary website, let alone any online sales. These stores should have ALL been taking advantage of gunbroker for the past 2 DECADES, yet apparently they prefer to sit on inventory for years and sometimes DECADES when it's something that would sell in less than a week online for over asking price. There are probably at least a dozen gun shops within an hour of me, only one of them does Gunbroker, and only one of them has any sort of online ordering. And these are shops of all shapes and sizes (nothing quite so large it is a regional draw, but large enough to be a county draw), some quite small, some with $1m+ in inventory.

 

[stocker1042]

That was the case with every online store selling every conceivable product, it was not something exclusive to Gunbroker.

Ultimately, the day of the brick and mortar store is coming to a close, you can see that clear as day with the abject collapse of shopping malls. Personally speaking, unless it's something I had to have TODAY, I'm more likely to purchase something online and have it delivered even if it is exactly the same price in the store, not worth the hassle of getting in the car, driving across town, finding what I want, checking out, and driving home, wasting an hour or more, when I can accomplish the same thing in 2 minutes sitting at my computer. Hell, I'd even pay a little bit more for something online if it is less of a hassle.

Anyone who thinks the sales tax situation "levels the playing field" is missing the big picture. Even with sales tax included both ways, it's almost always cheaper to buy online, and a hell of a lot more convenient. Personally one thing the sales tax imposition has caused for me is to second guess if I REALLY want/need something. I always calculate that into the final price, and sometimes when all is said and done it just isn't worth it (it can turn a good deal into a not-so-good deal esp on ebay and gunbroker). The ironic thing at the end of the day is that for the states this likely ends up being a near zero sum game, sure they get more money from sales tax, but they are probably losing an equivalent amount in income tax from the seller due to decreased sales.

Sadly, many brick and mortar stores have patently refused to come into 1998 and have even a minimal web presence. Most of the gun shops in my area barely have a functional rudimentary website, let alone any online sales. These stores should have ALL been taking advantage of gunbroker for the past 2 DECADES, yet apparently they prefer to sit on inventory for years and sometimes DECADES when it's something that would sell in less than a week online for over asking price. There are probably at least a dozen gun shops within an hour of me, only one of them does Gunbroker, and only one of them has any sort of online ordering. And these are shops of all shapes and sizes (nothing quite so large it is a regional draw, but large enough to be a county draw), some quite small, some with $1m+ in inventory.

Trust me, I'm with you. I avoid going to brick and mortar stores unless I need it today or the store offers something that I can't get online. It seems like those stores who have adapted to both platforms have done well. I've been on Ebay since it's inception and only recently have they collected sales tax. For years they made the argument it was too much work and it would hinder the growth of e-commerce. No more. All of that said, Gunbroker should be doing it just like Ebay does-automatically charge the buyer, send it directly to the state, and leave the seller out of it.

 

[skeet_man]

All of that said, Gunbroker should be doing it just like Ebay does-automatically charge the buyer, send it directly to the state, and leave the seller out of it.

I don't disagree, but that can't happen unless gunbroker sends the buyer a separate bill, requiring a separate payment from the buyer (which in turn would make it more complicated for the buyer, hindering sales), or gunbroker starts facilitating the financial transaction as well, which comes with a whole new set of fees for the seller, which in turn get passed on to the buyer.

GB is still a significantly better deal for the seller, 6% or less final value fee vs 10% on ebay + paypal or managed payments fee of another 3%, so sellers cost is less than half with GB, although you have a significantly larger pool of buyers on ebay, so it's all give and take if you're listing as an auction and not a set price, and it's something that's allowed to be sold on both platforms.

 

[Sportshot]

The system that Gunbroker has initiated is not going well in the initial rollout. I sold three personal rifles in February as a private seller, not a dealer. Only one sale was noted as taxable and the buyer sent along about $35 in sales tax. Ok, no big deal. But Gunbroker just notified me that I have an automatic sales tax charge hitting my bank next week of $95. The other two buyers just mailed me a check for the bid price plus shipping.

Apparently GB has up charged or back charged sales tax even though the sales were to noncollecting state

I’m not aware of and recourse against GB other than a whole new set of due diligence about tax collection if I ever use that site again. I’m thinking if these three sales were this jacked up for me, what about some of those high volume sellers that were taken by surprise. They won’t be as easy to deal with as I’m prepared to be

 

[skeet_man]

Average price was about $1500 each. Only one sale was noted as taxable and the buyer sent along about $35 in sales tax.

Unless the value of the guns was vastly different, and only averaged out $1500 (IE one was 500, one was 1500, and one was 2500), it sounds like you didn't collect enough tax for the one that was taxable.

$35 would have only been approximately right if the gun the sales tax was applied to was $500ish.

If they were ALL roughly $1500/ea, then either gunbroker, the buyer, or you shorted the transaction about $70

 

[DOMINATOR-3000]

For me in WA it's a good news, because i had to pay sales tax at my FFL after shipping anyway.

But now I'm going to have less competition from bidders in others states