Had my first sale on Gun Broker today, where the buyer had to pay sales tax. He was in Iowa. In April 1st they are adding a bunch of states that will be taxing.

yep...been that way for awhile. they are all jumping on the tax band wagon.

Thanks to Amazon.

...and eBay

Wonder how many of them turn the tax money in to the appropriate state?

I sure miss the good old days.😤

Been that way for over a year now. There are some exclusions like states that don’t have a sales tax.

the only reason to buy online now is availability of hard to find items, specialty items

Most of the stuff I need, I would never find at any of the big box stores.

No tax used to be the "bonus" for shopping online. Now when I see the shipping cost + tax, I just click off.

15.00 box of .22 ammo ends up being 30.00

It wasn't the retailers that wanted to charge sales tax; it was the individual states that were demanding that out-of-state retailers collect sales tax. Many states (like Texas) rely heavily on sales taxes to generate revenue. The states were losing a lot of revenue because of the rapid evolution of out-of-state online sales involving retailers that were not collecting sales tax for the states. It ultimately wound up at the U.S. Supreme Court in 2018 in South Dakota v. Wayfair. Justice Kennedy, joined by Justices Thomas, Ginsburg, Alito, and Gorsuch, ruled that states like South Dakota could demand that out-of-state retailers like Wayfair collect and remit sales tax to the state. So, now the retailers are just falling into line so they don't get in legal trouble with the states demanding that sales taxes be collected.

And, paying sales tax for online purchases was something most people were supposed to be doing all along. Even before this decision, shoppers were supposed to report and remit sales taxes to their state of residence if the retailer was not collecting the tax. In Texas, it's called the Use Tax. See Tex. Tax Code s. 151.102. Of course, no one was doing this, especially in the online shopping age, so states were forced to get the Supreme Court involved.

I don't like it either, but we had a good run for 20+ years not having to pay sales tax on online purchases. But, if that means Texas can continue to be a state without a state income tax, I'm fine with that.

JMHO.

All of them, GB takes the money from the seller regardless as to whether you collected it or not.

why is the seller paying the tax?

Thats the way they have it set up, as payment is still person to person. I have to charge customer for their state tax and then Gunbroker bills my CC for it.

I have not sold anything on GB in a very long time. Looks like I wont be in the future either.

The GB spam has increased tenfold since they sold out. Now he's gonna collect taxes.... Deleting my account, it was good at one time.

I deleted my account last week, if I needed anything from that place again I had decided to take up golf and I hate golf.

That's the way I view it. We basically scammed our own state for a long time and they fixed the glitch.

When you add the tax to the online purchase premiums, you can end up with a surcharge as much as 30% over the nominal pricing. I think the net effect will be to move high end purchases away from the auction sites and on to the classified ad sites. This will greatly reduce the appeal of online auctions. As somebody once observed, "the power to tax is the power to destroy."

Do individual sellers pay taxes on behalf of the buyer?

If it's like eBay the buyer pays the tax just like buying online from a retail store.

Tax is added to the price of the item, buyer pays the tax, selling platform deducts, keeps, pays the tax, seller gets pre-tax amount minus commissions.

It's very simple.

That is incorrect, the seller is required to collect the tax, gun broker then hits the sellers credit card on file for the sales tax amount.

How will the sales tax process flow?

GunBroker.com will calculate and add the applicable sales tax to each order being shipped to a GunBroker.com MPF State. The buyer will pay the seller the Order Total Payable, which includes the sales tax. The seller will be notified of the sales tax to remit via a sales tax statement. The tax amount will be remitted to GunBroker.com via a remittance process that is very similar to the one we use to collect fees which uses your payment method(s) on file. GunBroker.com will then remit the sales tax to the appropriate state.

Read ALL of my post...especially the first four words. The way you describe, the seller still is not paying the tax (the buyer us in the end) and effectively the process is what I described with a couple extra steps.

I read ALL the post and the second portion is incorrect



That is incorrect, I sell on GB often and it is a pain compared to most online platforms.