Starting Tomorrow Sales Tax on All Gunbroker Purchases

wvsig

wvsig

So Long, and Thanks for All the Fish...
Multi-Factor Enabled
Joined
Aug 23, 2017
Messages
10,030
Location
VA
Rating - 100%
15   0   0
support.gunbroker.com

Marketplace Facilitator Sales Tax Collection

Note: GunBroker.com will update this document as new information is available. The whole document may have changes but specific sections added or with major updates are indicated by an asterisk (*)...
support.gunbroker.com support.gunbroker.com

I am not sure but I believe if you win and pay today you avoid the tax.
 
JohnnyB64 said:
It's a pain for sellers too, to keep up with the different rates and with reporting. Surprised they've been able to avoid it this long.
Click to expand...
GB check out calculates it for the seller. It will be interesting to see if it final price goes down accounting for tax.
 
Good, only because its been unfair to retailers online and brick/mortar. Lots of retailers have made lots of money also pressing prices upward but rarely reporting tax thru GB.
 
Does anyone know: GB collects the tax & pays the tax, or GB adds the tax, sellers is req'd to pay the tax to his state of residence?

I would presume GB collects & pays relevant state dept of rev b/c GB is acting as an agent. But I couldn't find that specifically stated.
 
Windini said:
Does anyone know: GB collects the tax & pays the tax, or GB adds the tax, sellers is req'd to pay the tax to his state of residence?

I would presume GB collects & pays relevant state dept of rev b/c GB is acting as an agent. But I couldn't find that specifically stated.
Click to expand...

Assuming it's like etsy and ebay. I only see state tax on the receipt. I never see the money or have to deal with it.
 
Windini said:
Does anyone know: GB collects the tax & pays the tax, or GB adds the tax, sellers is req'd to pay the tax to his state of residence?

I would presume GB collects & pays relevant state dept of rev b/c GB is acting as an agent. But I couldn't find that specifically stated.
Click to expand...

chiefjason said:
Assuming it's like etsy and ebay. I only see state tax on the receipt. I never see the money or have to deal with it.
Click to expand...

The only issue I see it that if you do not use their instant checkout system they calculate the tax for you which you have to collect on your invoice. They will remit it to the state for you and then bill you for it on your account with the other fees.

How does this work if I use the GunBroker.com immediate checkout process?​

The GunBroker.com immediate checkout process has the advantage of ensuring that the necessary sales taxes for sales into GunBroker.com MPF States is added to the amount collected from the buyer.

For sellers using the GunBroker.com immediate checkout process, those amounts will be added to the amount collected by you from the buyer. GunBroker.com will then bill and collect these sales tax amounts from you in the same manner as we use to bill and collect your monthly GunBroker.com fees, via your payment method on file. GunBroker.com will remit the amounts collected to each state as the Marketplace Facilitator. All transaction payments go to the seller and no money flows directly from the buyer to GunBroker.com, the tax payment / remittance will flow from the buyer to the seller, then to GunBroker.com, and finally to the appropriate state.

What if I don’t use the GunBroker.com immediate checkout process for my sales?​

If you do not use the GunBroker.com immediate checkout process, you should use the GunBroker.com standard checkout for all your sales / orders. The checkout and order process will calculate the sales tax based on the Ship To address on the order and add the amount to the order total payable. Collect the order total payable from the buyer so you have the correct amount.

The checkout and order process will work for sellers, no matter what payment methods you accept and what shipping methods you support. The checkout process allows for efficient communication between the buyer and the seller for all transactions.

If you do not use the GunBroker.com immediate checkout process, you will need to add the sales tax for the GunBroker.com MPF States to your own checkout process and collect these amounts from your buyers in those states, because GunBroker.com will be billing and collecting these amounts from you.
 
Last edited:
You guys haven’t been reporting your unpaid sales tax on these transactions on your income tax returns. Probably not reporting the gains either. Shame shame shame.
 
Well this will give my LGS 8% more level playing field but they have never even been close on a new gun. Retail plus. They are just too convenient so I do Xfrs there. Miles cost money.
 
jimmyjames8 said:
Well this will give my LGS 8% more level playing field but they have never even been close on a new gun. Retail plus. They are just too convenient so I do Xfrs there. Miles cost money.
Click to expand...
Pretty much what I was thinking. The 8% tax doesn’t get very close to closing the gap of online vs LGS.
 
Mike Overlay said:
Damn shame, just more uncompensated tax collectors for uncle sam. The sellers should bill uncle sam for the “accounting time” involved. 😠
Click to expand...

I actually don't mind sales taxes. They are voluntary after all.

What I hated when I was in the car business was customers whining about it. In Illinois you paid the sales tax rate where the vehicle was to be registered.
They would say I was charging too much tax! I would have to tell them about the home rule too. They didn't like that. They thought they could come down from Cook County, essentially Chicago and think that they allowed the politicians to get away with levying local taxes, but could come and buy big ticket cars elsewhere, where the sales tax rate was just the state. I forget what it was back then, 6.5% on the bottom line I think?

But yeah, I was essentially an unpaid collector for the state and various localities that had extra added BS. I got to a point with that, that I told a guy to call the people that thought that crap was a good idea, the rate is the rate! He didn't care too much for that. Must have voted for them.
 
What exactly are the states doing with this windfall of new taxes? 8% of all things sold on the internet is no small amount of money. I'm sure it's mostly just grifted away.
 
Still eight states for which they are not collecting sales tax:

Alaska

Delaware

Florida

Kansas

Missouri

Montana

New Hampshire

Oregon
 
Ikarus1 said:
Just another reason to avoid GunJoker for me. Along with the $45-60 shipping and 3% card surcharges.
Click to expand...
Gunbroker is in most cases retail or above PLUS tax, credit card fee, shipping, and transfer fee. When you go into a local store I would hope people would consider this. But most will not. They will look up an out of stock from two years ago and do s comparison.

Gunbroker is for people who actually desire to purchase. Less customer’s to complain because they can’t. Bid or move on.
 
It kind of sucks because if you are into guns that are no longer in production and or less common GB is still one of the best sources. My LGS don't have BHPs and vintage Colts in stock ever. If you know what you are looking for and the proper pricing for what you want you can still get deals there. The Avg LGS can't afford to stock the older stuff. So now lots of the stuff I am into has gone up by 8% overnight.
 
Last edited:
wvsig said:
What sales? I only lose money on transactions. There are never gains.
Click to expand...
Sales tax is on purchases. When you buy something, if the seller doesn’t collect sales tax for it you’re supposed to remit it directly.

Gains and losses come into it when you sell.
 
I've never used gunbroker, but someone who works in the firearms business told me they are why we can't find primers in stores anymore.
 
Starkherz199 said:
I've never used gunbroker, but someone who works in the firearms business told me they are why we can't find primers in stores anymore.
Click to expand...
It is the LGS who are selling on GB for higher profits than they would get locally that are the cause of no primers in the stores. They are still getting them they just aren't putting them on the shelves. Then you have another set of people scalping every primer they can get their hands on. GB is just the platform of choice it is not the cause.
 
wvsig said:
It is the LGS who are selling on GB for higher profits than they would get locally that are the cause of no primers in the stores. They are still getting them they just aren't putting them on the shelves. Then you have another set of people scalping every primer they can get their hands on. GB is just the platform of choice it is not the cause.
Click to expand...
That is exactly what I was told. Gun stores have no incentive to put them on the shelf when they can put them on gunbroker for a much higher profit.
 
I’d be pretty surprised if most LGSs were certified to ship hazmat, but maybe they are.

If true, it’s just the market at work. If they put them on the shelves at $150/k we’d call them gougers, so better to sell online.
 
It shouldn't be a change to anyone's pocket since I'm sure everyone is self reporting any online purchases where sales tax wasn't collected as required when filing your NC tax returns.
 
wvsig said:
It kind of sucks because if you are into guns that are no longer in production and or less common GB is still one of the best sources. My LGS don't have BHPs and vintage Colts in stock ever. If you know what you are looking for and the proper pricing for what you want you can still get deals there. The Avg LGS can't afford to stock the older stuff. So not lots of the stuff I am into has gone up by 8% overnight.
Click to expand...
THIS^^^^^^^^^^^^^^^I buy pre '82 S&Ws and pre'70 Colt 1911s when I buy and they are The Best source.
 
I've bought 2 pistols off of GB. Both were new from a gun store. I paid tax on both of them. Even with shipping and transfer fees, both were cheaper than buying from any local shop near me.
 
SPST said:
I've bought 2 pistols off of GB. Both were new from a gun store. I paid tax on both of them. Even with shipping and transfer fees, both were cheaper than buying from any local shop near me.
Click to expand...
Your local shops must suck.
 
Question. If you sell something to a state that does not collect sales tax on firearms and ammo like West Virginia, will GB still attempt to collect said tax??
 
grungewehr39 said:
Question. If you sell something to a state that does not collect sales tax on firearms and ammo like West Virginia, will GB still attempt to collect said tax??
Click to expand...

Check their system as of April 1 2021 they say yes.

support.gunbroker.com

Sales Tax

Sellers As a seller you are responsible for complying with all applicable tax laws. These laws include any local laws for your home state as well as “internet sales tax” laws. If you sell to buyers...
support.gunbroker.com support.gunbroker.com
 
So when all those guys abandon Gun Broker, are they all coming here?
 
fyi, armslist is still garbage
less obvious scams, but the guns are generally more than i want to pay.
 
wvsig said:
Check their system as of April 1 2021 they say yes.

support.gunbroker.com

Sales Tax

Sellers As a seller you are responsible for complying with all applicable tax laws. These laws include any local laws for your home state as well as “internet sales tax” laws. If you sell to buyers...
support.gunbroker.com support.gunbroker.com
Click to expand...

It looks like the WV law for sales tax regarding firearms just went into effect July 1st. I would assume at some point, they will address it. But who knows.

www.wowktv.com

Guns and ammo now tax-free in West Virginia

Starting July 1st, all small firearms and ammunition bought in West Virginia will no longer contain a sales tax.
www.wowktv.com www.wowktv.com
 
Last edited:
Ive had 2 GB sellers tell me no sales tax will be collected by them and they set the pricing up in their ad set up. One in TX and one in Flo Rida.
 
jimmyjames8 said:
Ive had 2 GB sellers tell me no sales tax will be collected by them and they set the pricing up in their ad set up. One in TX and one in Flo Rida.
Click to expand...


I wonder how they are doing that? Gunbroker sends us a separate invoice from our auction fees every month for the sales tax on our sold auctions. If you don't collect it from the buyer at the time of sale, you still have to pay it at the end of the month. I'm not sure how they are getting around that.
 
You must log in or register to reply here.
Back
Top Bottom