Home Forums Gear Free Classifieds GunBroker Sakes Tax Confusion

Can someone explain to me how this new tax works? I have read the GunBroker explanation and still
am not sure how this works.
My state, SD is not in the list...... yet.

Starting April 1st SD will be on the list of states. When you buy something on Gunbroker from then on you will have to pay the “internet sales tax”. If you sell on Gunbroker and someone buys from you from a state that collects the tax then the buyer pays you the sales tax. Each month Gunbroker will take that tax back from you as a seller and distribute it to the appropriate state. They automatically deduct your account based on whichever payment type you have listed on your Gunbroker account.

8 states are on the list now. Starting April 1st, they are adding 36 more states

(if buying/selling out of state)
Buying out of state - If you are not on the list, no sales tax. If you are on the list, you pay sales tax.
Selling out of state - If buyer on the list, no sales tax. If buyer on the list, you charge sales tax.

Technically, sellers don't charge it, it is automatically added to the total after the bidding ends.

I'm done with GB.
fee is too high and now tax?
I'd rather sell cheaper on a forum and not deal with GB.
And I've been with them 19 years

Technically, you are charging them sales tax. They buyer pays the sales price, shipping cost + sales tax to the seller.

Add me to that.

No, the seller has no choice in the matter. Saying it is on the seller implies that the seller has a way around it. They don't.

Simply, if the seller was charging it, the seller would be responsible for paying it to the respective states. There is no mechanism for that.

That makes zero sense. besides, the seller has a choice. He doesn't have to charge the sales tax (he's going to pay it to GB regardless of what he does). Just like you don't have to charge for shipping or paypal fees. The invoice they buyer gets is one thing, The price you tell the buyer to send you is another.

How many sellers are going to be willing to eat the sales tax?

I purchased a rifle on gun broker and it is coming from Wyoming. The seller wants to charge me 4% Wyoming sales tax even though South Dakota is not on the list. I call BS. Who is right? $2500.00 rifle x 4%=$100.00
Is he making money because his rifle did not bring what
He thought it should???????

It's kind of a shame once again the gov is screwing up productive Americans.

They give tons away but keep taking from the producers
Compare the rates GB vs EBay
GB is just not bad IMHO

Hank

Some GunBroker sellers are bound directly by the states they operate in. If they operate in a state that has sales tax laws and are a registered business, they have to pay the tax on sales directly to the state regardless of what GunBroker is doing.

In that case, when South Dakota gets "ON THE LIST" I would then pay 4% Wyoming sales tax and 4% South Dakota Sales Tax if I buy a gun from Wyoming? WTF?!?!?!?!?!?!

Part of the reason I bought this one on GB is because SD is not on the list.....YET

That might very well be true, but then that seller should state it somewhere in the auction description. For Gunbroker, generally speaking, Sales Tax is only based on the Ship To address, not the sending one. If the seller didn't disclose up front he was going to collect Wyoming Sales Tax regardless, it's a legitimate complaint IMO.

Correct, they should state that, and some do. Example: https://www.gunbroker.com/item/891275644

As a seller, they have the ability to pick which states they want to apply sales tax to, either all the states that GunBroker acts on, or ALL states tax laws.
It's clearly up to the seller.

I knew this internet sales/buying was going to be taxed sooner or later, however, I was under the assumption that if South Dakota was on GunBrokers list to collect sales tax, then the seller
in Wyoming would collect 4% SD tax and it would be part of their final auction fee. They would then pay GunBroker the listing fees and my $100.00 in taxes.
GunBroker would then distribute the tax monies (in this case $100.00) to the State of South Dakota where the item was sold and shipped to. At present South Dakota is not collecting sales tax from GunBroker.
What am I not seeing/understanding? Like I stated above, if SD was on GunBrokers list, would I be paying 8% sales tax? 4% to Wyoming and 4% to South Dakota??????
Don't get me wrong, I am willing to pay my state tax, but this seems really odd to me.
Sorry for the rant.............

https://www.gunbroker.com/item/895372039

Nowhere in the ad does it state that the seller collects Wyoming taxes, this line is stated on every auction listed on GunBroker:

"Applicable Taxes and Fees
Sales tax collected based on ship to address"

......and SD is not on GB's list!!

Based on the listing you provided, you are not liable for paying anything more than what the closing cost and shipping is on that rifle.
If that auction closed AFTER 1 April, then you'd be liable.

https://support.gunbroker.com/hc/en-us/articles/360051436174-Sales-Tax

Same thing on ebay.

This is a government forced tax that ultimately the buyer will pay in one way or another. It's the consumer, the little guy, who always pays. Government is not there to "provide" for the people. All it does is take.