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Heritage - adding Sales Tax to more states
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Started by Catwoman_Fan,

134 posts in this topic

Catwoman_Fan

Catwoman_Fan

Posted
Posted

I am bummed to see that Heritage is going to charge Sales Tax on Hawaii, Kentucky, Maine, Minnesota, Mississippi, Ohio, and Pennsylvania - starting August 1st

:tonofbricks:

As a PA resident, this will seriously impact my bidding. 

How do you guys in states already paying sales tax (in TX, NY?) deal with this? Do you take it into consideration while bidding?

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RB3

RB3

Posted
Posted

If I lived in one of those states where sales tax was collected for bidding, then yes, I would factor in that tax since it is cash I'm still having to pay, no matter if it goes to Heritage or the State.  It would be interesting to know if they are charging sales tax on the final bid price since I am buying something, or charging tax on the finial sale price which includes the buyers premium which is a service?  Some states dont charge taxes on service prices, just on the sale of merchandise.  

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malvin

malvin

Posted
Posted

yay, I'm glad the state that my friend lives in (that I send my HA packages to) has not been added to the list.

I better start making new friends just in case :)

Which states are still tax free?

Malvin

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comix4fun

comix4fun

Posted
Posted
10 minutes ago, malvin said:

yay, I'm glad the state that my friend lives in (that I send my HA packages to) has not been added to the list.

I better start making new friends just in case :)

Which states are still tax free?

Malvin

cayman.gif.cf0a1e6856c95f898c083c7348beaaa0.gif

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CartoonFanboy

CartoonFanboy

Posted
Posted

With the new Supreme Court ruling, this was obviously coming (though I'd hoped it wouldn't be this soon). Unfortunate for me since I'm in one of the affected states. I will definitely be factoring sales tax into future bids.

On a more positive note, my last purchase was earlier this month, and it just so happened to be the biggest purchase I've ever made at one time.

Being of modest means, I don't usually win that much off of Heritage due in large part to the BP. With sales tax now being a factor, I get the feeling my bids are about to become even less competitive.

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comix4fun

comix4fun

Posted
Posted
4 minutes ago, Brian Peck said:

I think this is a good thing I feel people living in CA, TX and NY have been at a disadvantage. The tax can be a factor on higher end pieces. They should tax all or none. 

And Illinois. It's been applied here since HA opened their offices a few years ago. 

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DeadpoolJr.

DeadpoolJr.

Posted
Posted
2 hours ago, Catwoman_Fan said:

I am bummed to see that Heritage is going to charge Sales Tax on Hawaii, Kentucky, Maine, Minnesota, Mississippi, Ohio, and Pennsylvania - starting August 1st

:tonofbricks:

As a PA resident, this will seriously impact my bidding. 

How do you guys in states already paying sales tax (in TX, NY?) deal with this? Do you take it into consideration while bidding?

As a New Jersey resident who had this introduced to us a few months back and also has the same issue with Clink, welcome to the club. On a serious note, yeah factor that in when you bid. If you have friends or family that live in a none taxed state that you trust, you can also have the pieces mailed to them to avoid the tax.

This has always been a handicap for people in taxed States since we've had to bid above FMV of an art piece just to have a FMV bid on it at auction. This can be really painful once it starts to get to a few grand. Another thing you can consider is the spread the money pain out by working out a time payment with them before if you plan to spend an extra thousand which helps if you would have had the money if not for the extra tax.

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PhilipB2k17

PhilipB2k17

Posted
Posted
22 minutes ago, DeadpoolJr. said:

As a New Jersey resident who had this introduced to us a few months back and also has the same issue with Clink, welcome to the club. On a serious note, yeah factor that in when you bid. If you have friends or family that live in a none taxed state that you trust, you can also have the pieces mailed to them to avoid the tax.

This has always been a handicap for people in taxed States since we've had to bid above FMV of an art piece just to have a FMV bid on it at auction. This can be really painful once it starts to get to a few grand. Another thing you can consider is the spread the money pain out by working out a time payment with them before if you plan to spend an extra thousand which helps if you would have had the money if not for the extra tax.

Don't worry. After the Supreme Court ruling, every state will impose an internet sales tax eventually.:tonofbricks:

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Coach

Coach

Posted
Posted
23 minutes ago, wurstisart said:

What is the sales tax percentage and as mentioned earlier is it before or after bp

The sales tax percentage varies by state.  I believe Heritage charges sales tax on everything (bid, BP, and shipping). 

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BCarter27

BCarter27

Posted
Posted

The only person who gets hurt by fees is the consignor. The auction house gets their cut, FedEx gets theirs, state gets theirs, and the buyer factors all of that into the total cost when bidding. (And I'm sure some people are factoring in restoration and framing costs too. I know I do on certain pieces.)

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shortboxed

shortboxed

Posted
Posted

As a CA resident, the tax has kept me from bidding on HA auctions. With the BP (already factored into the bid of course) it just gets even worse with an almost 10% more on top for CA (and NY, TX, IL). The only way I'd win is if a book somehow flies under the radar and my final price after BP + tax comes in at or under FMV. So basically I never win anything and never bid. 

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Bomber-Bob

Bomber-Bob

Posted
Posted (edited)
1 hour ago, Coach said:

The sales tax percentage varies by state.  I believe Heritage charges sales tax on everything (bid, BP, and shipping). 

Yes, they even tax the shipping and handling. I argued that fact with them to no avail. It definitely gives an advantage to those bidding from a non taxed state. It doesn't bother me on 'smaller' purchases but it prevents me from bidding aggressively on bigger books. Not their fault, they are just following the advise of their accountants.

Edited by Bomber-Bob
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DeadpoolJr.

DeadpoolJr.

Posted
Posted
59 minutes ago, wurstisart said:

What’s the tax for PA

From my experience dealing with Comiclink they seem to round the sales tax. I'm also going by the local sales tax where they hold their auctions in these states.

California 9.5%

Hawaii 4%

Illinois 6.25%

Kentucky 6%

Maine 5.5%

Minnesota 6.875%

Mississippi  7%

New Jersey 7%

New York 8.8%

Ohio  5.7%

Pennsylvania 6%

Texas 8.25%

 

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cstojano

cstojano

Posted
Posted (edited)

I mean all of this is irrelevant anyway since we all report use tax wherever we live... HA should charge a convenience fee now for all the paperwork savings come tax time ;)

Edited by cstojano
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