GunBroker - Sales Tax starting 1/1

22lr

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Major bummer

Marketplace Facilitator Sales Tax Collection

Marketplace Facilitator Sales Tax Collection
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Last Update: December 4, 2020
GunBroker.com will implementing the new Marketplace Facilitator Internet Sales Tax regulations on January 1, 2021. As a marketplace, GunBroker.com will be required to collect and remit sales tax on all sales according to the state law.
What is a Marketplace Facilitator?
A Marketplace Facilitator is defined as an entity that provides a forum for sellers to promote their sale of physical property, digital goods, and services and is compensated for these services. As such, GunBroker.com is deemed to be a Marketplace Facilitator for sellers on the site.
What is Marketplace Facilitator Legislation?
Marketplace Facilitator legislation is a set of laws that shifts the sales tax collection and remittance obligations from the individual seller to the marketplace facilitator. As the Marketplace Facilitator, GunBroker.com will have to calculate, collect and remit state sales tax on sales sold by third party sellers for transactions destined to states where Marketplace Facilitator and/or Marketplace collection legislation is enacted.
What does this mean to me?
As a Buyer:
If your state requires Marketplace Facilitators to collect and remit sales tax, you will be required to pay the tax due for your purchases on GunBroker.com. The tax amount will be included on your order during checkout.
What if my business is tax exempt?
If your purchases are exempt from tax, you must submit your tax exemption documentation to GunBroker.com for review. Check with your tax professional or here for the documents required by each state: Sales Tax Exemption Certificates. After review, your account will be set up as tax-exempt buyer.
To submit your exemption please do the following:
  1. Send an email to [email protected]
  2. Attach your tax exemption documentation.
  3. Send it from the email address used on your GunBroker.com account.
  4. Use the email subject: Sales Tax Exemption Request - Buyer
  5. Briefly describe why you are tax exempt in the body of the message.
As a Seller:
GunBroker.com will calculate the tax due on each of your orders. This tax calculation will be based on the Ship To address on the order. The calculation will include tax for the item plus any additional taxes for things such as shipping or handling. When the buyer completes checkout, you will receive the appropriate tax amount as part of payment for the order. Make sure you and your buyers use the GunBroker.com order checkout process to complete the purchase so sales tax is handled properly. Be sure to collect the sales tax since you will be responsible for paying the sales tax amount to GunBroker.com for remittance to the state agencies.
What if I am a private seller and not a business?
Even as a private seller, you will have to collect and remit sales tax on your items. When the buyer completes the checkout process the appropriate tax will be calculated for the order. This tax will be paid to you as part of the payment you receive. In a manner similar to how you pay your GunBroker.com fees, GunBroker.com will bill and collect the sales tax amount from you. GunBroker.com, because of marketplace facilitator legislation, is required to report and remit the tax to the individual states for the transactions on the site.
How will this flow?
GunBroker.com will capture and record the sales tax related to each order. You will then remit that sales tax to GunBroker.com in the same manner as your monthly fees. These amounts will be periodically billed and collected via your payment method on file. GunBroker.com will remit the amounts collected to each state as the marketplace facilitator.
Will I have to change my listings?
No. On January 1, 2021 the GunBroker.com checkout process will begin charging sales tax on all orders. No changes to your listings will need to be made. Any existing tax information on your listings will be overridden by the new process.
Will I have access to sale tax information?
Yes. GunBroker.com plans to provide the ability for you to download your sales tax information as part of this process. The download will contain information about the order, ship to destination (used for tax calculation) and the tax amount.
How will this impact the sale tax filings I submit to states?
Sales tax requirements and regulations vary by state. GunBroker.com suggests you consult a tax accountant or tax attorney for guidance in these matters.
Will this change how my fees are calculated?
No. GunBroker.com fees will continue to be charged on the sale price of the item. The collection of state sales tax will not change your GunBroker.com fees.
What if my account is a charity / tax exempt?
If your sales are exempt from tax, you must submit your tax exemption documentation to GunBroker.com for review. After review, your account will be set up as tax-exempt seller. To submit your exemption please do the following:
  1. Send an email to [email protected]
  2. Attach your tax exemption documentation.
  3. Send it from the email address used on your GunBroker.com account.
  4. Use the email subject: Sales Tax Exemption Request - Seller
  5. Briefly describe why you are tax exempt in the body of the message.
 

appraiser

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it takes minutes to create a FIN number (04-) at the Federal level that you can use to create a paper company in MA to get a sales tax exempt number.

If you don't abuse it, you will go un noticed.

I just got one for Florida as the place where I got the rims for the new car was going to ding me sales tax if I picked them up.

5 mins on the State of FL wensite and I had a resale number using my NH address, I did the same with MA years ago for car parts.
 

Parker Duofold

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it takes minutes to create a FIN number (04-) at the Federal level that you can use to create a paper company in MA to get a sales tax exempt number.

If you don't abuse it, you will go un noticed.

I just got one for Florida as the place where I got the rims for the new car was going to ding me sales tax if I picked them up.

5 mins on the State of FL wensite and I had a resale number using my NH address, I did the same with MA years ago for car parts.

In Massachusetts it's a sales tax resale number unless you are a non-profit corp. Be careful. What you are saying is not legal. YMMV
 

Blackmore

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As much as I dislike eBay, at least they charge the buyer right off the top, collect the money and remit it to the appropriate state. Easy-peasey for the seller.


Gunbroker wants you the seller to accept full payment including the tax and then turn around and give them the tax back. What a bunch of bulls#!t and a pain in the A$$. Must be easier and cheaper for those lazy [email protected]¢ks at GB.
 
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Rob Boudrie

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As much as I dislike eBay, at least they charge the buyer right off the top, collect the money and remit it to the appropriate state. Easy-peasey for the seller.

Gunbroker wants you the seller to accept full payment including the tax and then turn around and give them the tax back. What a bunch of bulls#!t and a pain in the A$$. Must be easier and cheaper for those lazy [email protected]¢ks at GB.
Does the Gunbroker site provide for automatic adjustment of the price to account for the different amount of this tax depending on the buyer's state, or does the seller play sales tax roulette and get a payment that may vary as much as 8+% on an order depending on information disclosed after the sale?
 

42!

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Does the Gunbroker site provide for automatic adjustment of the price to account for the different amount of this tax depending on the buyer's state, or does the seller play sales tax roulette and get a payment that may vary as much as 8+% on an order depending on information disclosed after the sale?
I believe the sales tax is based on the location of the buyer, so I would expect a buyer to know what the sales tax is in their own state. If they don't, too bad.
 

citoriguy

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South Dakota v. Wayfair changed the dynamics of what constitutes nexus. Look it up and read the summary. The old Quill rules were essentially tossed out and the old Commerce Clause (based on Quill) rewritten.
 
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South Dakota v. Wayfair changed the dynamics of what constitutes nexus. Loik it up and read the summary. The old Quill rules were essentially tossed out and the old Commerce Clause rewritten.

Yup, next up income tax.
They'll tell you in defense you don't have standing because they have you bent so far over taking it up the arse. Roberts must have had a lot of practice giving it on the island with his buddy Billy. Need some 🍌 We got plenty here.
 
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snax

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it takes minutes to create a FIN number (04-) at the Federal level that you can use to create a paper company in MA to get a sales tax exempt number.

If you don't abuse it, you will go un noticed.

I just got one for Florida as the place where I got the rims for the new car was going to ding me sales tax if I picked them up.

5 mins on the State of FL wensite and I had a resale number using my NH address, I did the same with MA years ago for car parts.
I don't know how they pick and choose who to go after, I did my first tax ID maybe in 2004? I did a single purchase from a single company out of Georgia or Alabama for under $1000. I think it was more like $850 or something. Car parts.
MA sent me an estimated tax bill the following year of $4000 based on I have no clue what information, as that company had sent nothing to MA for them to come up with anything. I basically had to call them, fill out and send them a bunch of stuff that showed I made a $850 purchase of "inventory" that I had not yet sold so I had no taxes to pay yet.
Never heard from them again after that.
 

Rob Boudrie

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I believe the sales tax is based on the location of the buyer, so I would expect a buyer to know what the sales tax is in their own state. If they don't, too bad.
That was not my point.

Gunbroker expects the seller to remit sales tax.

If an item is listed for $100, does a MA resident get charged $106.25, or does the same price show for all buyers with the seller being porked with various diameter shafts depending on the state of the buyer.
 

Rob Boudrie

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it takes minutes to create a FIN number (04-) at the Federal level that you can use to create a paper company in MA to get a sales tax exempt number.

If you don't abuse it, you will go un noticed.

I just got one for Florida as the place where I got the rims for the new car was going to ding me sales tax if I picked them up.

5 mins on the State of FL wensite and I had a resale number using my NH address, I did the same with MA years ago for car parts.
Do you mean EIN rather than FIN?

EINs used to start with 04- but that is no longer universally true (I got one for an org recently, and it was not 04-), though they are still commonly referred to as 04- numbers.
 

enbloc

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The United States Federal Government, as well as individual States charged taxes on the importation and sale of Slaves...

Property Taxes on Slaves
The U.S. Constitution granted Congress the authority to tax slaves as property in Article I, Section 9, stating:

The migration or importation of such persons as any of the States now existing shall think proper to admit, shall not be prohibited by the Congress prior to the year one thousand eight hundred and eight; but a tax or duty may be imposed on such importation, not exceeding ten dollars for each person. (Bowditch 121)
 

42!

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That was not my point.

Gunbroker expects the seller to remit sales tax.

If an item is listed for $100, does a MA resident get charged $106.25, or does the same price show for all buyers with the seller being porked with various diameter shafts depending on the state of the buyer.
I think I get what you are saying now.
After a sale, are they going to display the final price to others with or without the sales tax. Is that it?
Who knows, but I would assume they would not. They are showing the sale price. Not the sale plus shipping, and not the sale plus the 3% upcharge for a credit card (if applicable), why would they complicate things by showing sell+tax sometimes and just sell others.

I bid at auctions (real auction, not gunbroker) all the time. After the auction, all they list is the sale price, never any taxes, shipping, credit card fees, or buyers premium. It's a "sale" price.

just my opinion
 

Rob Boudrie

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I think I get what you are saying now.
After a sale, are they going to display the final price to others with or without the sales tax. Is that it?
Who knows, but I would assume they would not. They are showing the sale price. Not the sale plus shipping, and not the sale plus the 3% upcharge for a credit card (if applicable), why would they complicate things by showing sell+tax sometimes and just sell others.

I bid at auctions (real auction, not gunbroker) all the time. After the auction, all they list is the sale price, never any taxes, shipping, credit card fees, or buyers premium. It's a "sale" price.

just my opinion
But, at an auction, you don't generally have "seller does not know how much (s)he will receive until the buyers tax location is determined".
 

42!

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But, at an auction, you don't generally have "seller does not know how much (s)he will receive until the buyers tax location is determined".
I get that it convoluted that the sales tax is paid to the seller and then the seller pays the tax forward to GB. But the seller does know exactly what they are getting to keep. They are getting the sale price. The tax passes through them but that amount is in no way relevant to them since it's not the sale price. This is not a relevant point.
 

AHM

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MA sent me an estimated tax bill the following year of $4000 based on I have no clue what information, as that company had sent nothing to MA for them to come up with anything. I basically had to call them, fill out and send them a bunch of stuff that showed I made a $850 purchase of "inventory" that I had not yet sold so I had no taxes to pay yet.
Never heard from them again after that.
Mass DoR probably has your mugshot tacked up on the break room wall,
with the caption "Buzz Killington".
 

enbloc

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The United States Federal Government, as well as individual States charged taxes on the importation and sale of Slaves...
Property Taxes on Slaves
The U.S. Constitution granted Congress the authority to tax slaves as property in Article I, Section 9, stating:

Absolutely right @Len-2A Training. Bullshit Slavery insulted further by taxing human beings as 'Property'
Whether here, the Nile Delta, rural China or deep in Russia. Slavery is Evil...
 

citoriguy

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Yup, next up income tax.
They'll tell you in defense you don't have standing because they have you bent so far over taking it up the arse. Roberts must have had a lot of practice giving it on the island with his buddy Billy. Need some 🍌 We got plenty here.

Well, because the nexus rules changed in Wayfair, an organization that pays sales tax in a jurisdiction may have to file an income tax return in that jurisdiction as well.
 
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