Heritage - adding Sales Tax to more states 1 1

[tth2]

8 hours ago, zhamlau said:

Well, big question time:

Do you think prices were adversely impacted by the addition of sales tax? No, dammit Did hammer prices seem light, normal, or high overall? High overall

 

[AnkurJ]

Comicconnect has also started collecting tax outside of NY.

[delekkerste]

10 hours ago, zhamlau said:

Well, big question time:

Do you think prices were adversely impacted by the addition of sales tax? Did hammer prices seem light, normal, or high overall?

I don't know why anyone would have expected prices to be majorly impacted by the addition of sales tax in this auction.  Sales tax has already been levied for some time in the states with the largest concentrations of OA collectors (e.g., California, New York, New Jersey, Illinois), while international buyers have had their own tax regime and dealers have been exempt, so no change there.   

The states where sales tax was levied since the last auction were:  Hawaii, Kentucky, Maine, Minnesota, Mississippi, Ohio, and Pennsylvania  

I don't know how much non-dealer bidding/buying comes from collectors residing in those states, but, my guess is that it's not enough to move the needle much. 

[batman_fan]

4 minutes ago, delekkerste said:

I don't know why anyone would have expected prices to be majorly impacted by the addition of sales tax in this auction.  Sales tax has already been levied for some time in the states with the largest concentrations of OA collectors (e.g., California, New York, New Jersey, Illinois), while international buyers have had their own tax regime and dealers have been exempt, so no change there.   

The states where sales tax was levied since the last auction were:  Hawaii, Kentucky, Maine, Minnesota, Mississippi, Ohio, and Pennsylvania  

I don't know how much non-dealer bidding/buying comes from collectors residing in those states, but, my guess is that it's not enough to move the needle much. 

We get screwed in CO too 

[zhamlau]

9 hours ago, delekkerste said:

I don't know why anyone would have expected prices to be majorly impacted by the addition of sales tax in this auction.  Sales tax has already been levied for some time in the states with the largest concentrations of OA collectors (e.g., California, New York, New Jersey, Illinois), while international buyers have had their own tax regime and dealers have been exempt, so no change there.   

The states where sales tax was levied since the last auction were:  Hawaii, Kentucky, Maine, Minnesota, Mississippi, Ohio, and Pennsylvania  

I don't know how much non-dealer bidding/buying comes from collectors residing in those states, but, my guess is that it's not enough to move the needle much. 

But this generally cuts off the "escape hatches" for many. We had spoke on length (in public and private) about how this addition of sales tax across the entire country would effect sales. It appears it really wasn't a hindrance in anyway, shape, or form. Just another extra bill tacked on the end, to help facilitate the transfer of wealth from you (people generating the wealth) to them (government absorbing it to spend with little oversight and little additional positive effect).

[cstojano]

Where is the link with the current list of states sales tax is charged? I cannot for the life of me find it on HA.

 

There is this: https://www.ha.com/c/ref/sales-tax.zx

 

But no list. 

Edited November 20, 2018 by cstojano

[vodou]

21 minutes ago, cstojano said:

Where is the link with the current list of states sales tax is charged? ... ... ...

Shortest answer possible to all questions on this subject: Everybody needs a good friend in New Hampshire

[delekkerste]

59 minutes ago, zhamlau said:

But this generally cuts off the "escape hatches" for many. We had spoke on length (in public and private) about how this addition of sales tax across the entire country would effect sales. 

Oh yeah, for sure. We also have to ask:  what would prices be like without the tax?  Maybe even higher.  Hell, for those lots sold to those paying the sales tax, the reported sales price will understate how much they were actually willing to pay.  

Same argument for 2009.  People point to that Action #1 6.0 that sold for $300K-odd dollars as "proof" that the market wasn't affected by the Great Recession.  Except, (a) how much would that book have fetched in July 2008 at the height of the pre-crash hard asset mania (answer:  at least that much and maybe more) and (b) that sale actually occurred in June 2009, AFTER the stock market had bottomed 3 months earlier and when we were actually already in the most powerful reflationary period in recorded history.  There is no such thing as an asset that is positively correlated in bull markets and negatively correlated in bear markets.   

[delekkerste]

13 minutes ago, vodou said:

Shortest answer possible to all questions on this subject: Everybody needs a good friend in New Hampshire

Who wants to be my friend???  

Alternatively, you can befriend a dealer who may be able to buy something on your behalf and resell it to you tax-free if you live in a different state.  Or if they are a very good friend.  

I have not bought anything from Heritage since Feb. 2017.  I'm sure it has everything to do with having a baby and another one on the way last year and nothing to do with the imposition of sales tax in every state in the tri-state area since that time.  

Edited November 20, 2018 by delekkerste

[Will_K]

13 minutes ago, delekkerste said:

I have not bought anything from Heritage since Feb. 2017.  I'm sure it has everything to do with having a baby and another one on the way last year and nothing to do with the imposition of sales tax in every state in the tri-state area since that time.

OK, given your personal situation (new heirs) and viewpoint on the future valuations of comic book art (declining), you're a good person to ask this theoretical question.

How much (percentage) of a "luxury tax" (or sales tax) on comic art would you be willing to pay upfront to be guaranteed that you would never have to pay capital gains or inheritance tax on the comic art??

 

Edited November 20, 2018 by Will_K

[John E.]

12 minutes ago, delekkerste said:

Who wants to be my friend???  

Alternatively, you can befriend a dealer who may be able to buy something on your behalf and resell it to you tax-free if you live in a different state.  Or if they are a very good friend.  

I have not bought anything from Heritage since Feb. 2017.  I'm sure it has everything to do with having a baby and another one on the way last year and nothing to do with the imposition of sales tax in every state in the tri-state area since that time.  

Congrats on your babies. 

[vodou]

5 hours ago, delekkerste said:

Who wants to be my friend???  

Alternatively, you can befriend a dealer who may be able to buy something on your behalf and resell it to you tax-free if you live in a different state.  Or if they are a very good friend.  

I have not bought anything from Heritage since Feb. 2017.  I'm sure it has everything to do with having a baby and another one on the way last year and nothing to do with the imposition of sales tax in every state in the tri-state area since that time.  

Almost two years, no HA wins...that's self-control! True re: dealer "friends", I hear if you bid up to a certain level for a dealer and you "win" you can trade that win back in for something else you actually want and everybody wins  

[vodou]

5 hours ago, Will_K said:

OK, given your personal situation (new heirs) and viewpoint on the future valuations of comic book art (declining), you're a good person to ask this theoretical question.

How much (percentage) of a "luxury tax" (or sales tax) on comic art would you be willing to pay upfront to be guaranteed that you would never have to pay capital gains or inheritance tax on the comic art??

 

You didn't ask me but I'll my answer is: doesn't matter, new administrations will always make temporary taxes permanent and create new taxes too if wanted (err, "needed"? ) There will never be a guarantee of NO TAXES just like there was never a guarantee of banking secrecy in Switzerland, just a very high likelihood...until there wasn't

Your concept is theoretically interesting, the reverse of the lottery winner's option from the State's pov, but I think we can expect luxury taxes to expand (to new 'products') along with wealth/asset taxes (confiscations?) and the rest to remain the same but at probably increasing % over time. They will keep taking until the violence is too great to ignore...

[cstojano]

8 hours ago, vodou said:

Shortest answer possible to all questions on this subject: Everybody needs a good friend in New Hampshire

Damn was hopeful when I saw this notification. Alas...Currently in AZ, a no tax state, I think. I assume they will email me an update if/when this changes? 

[tth2]

15 hours ago, delekkerste said:

(a) how much would that book have fetched in July 2008 at the height of the pre-crash hard asset mania (answer:  at least that much and maybe more) 

There is no way to prove or disprove that.  That is your opinion.

It was the first decent Action 1 to come up for public auction in a while, and yes, soon after the Financial Crisis had bottomed out, so people were understandably cautious.  Based on the previous comps, the winning price was not out of line, and certainly did not represent a decline, but there were no really contemporary comps.  This sale created the benchmark that others could use for subsequent sales as the book skyrocketed in subsequent years.

[tth2]

16 hours ago, delekkerste said:

Who wants to be my friend???  

I stand ready and willing in the duty free, sales tax free and capital tax free jurisdiction of Hong Kong Special Administrative Region.

[delekkerste]

5 hours ago, tth2 said:

There is no way to prove or disprove that.  That is your opinion.

Of course, it's a counterfactual.  But... #commonsense

22 hours ago, Will_K said:

OK, given your personal situation (new heirs) and viewpoint on the future valuations of comic book art (declining), you're a good person to ask this theoretical question.

How much (percentage) of a "luxury tax" (or sales tax) on comic art would you be willing to pay upfront to be guaranteed that you would never have to pay capital gains or inheritance tax on the comic art??

A "Roth IRA" for comic art?  

Well, even under the current rules, you can pass the art on to your heirs tax-free, at a stepped-up cost basis, when you pass if your total estate falls below the exemption level (not everyone's will, of course).  

One of the problems with the theoretical tax you propose is that it presumes you will hold the art until you die.  Presumably if you paid this hypothetical tax and then sold the art at some point, you will have paid the tax for nothing (other than having a higher cost basis from which to calculate your capital gains). 

[vodou]

1 hour ago, delekkerste said:

Presumably if you paid this hypothetical tax and then sold the art at some point, you will have paid the tax for nothing (other than having a higher cost basis from which to calculate your capital gains). 

He was including (in the hypothetical tax) the parameter "never have to pay capital gains".

[cstojano]

Email today confirming Arizona now added to the sales tax list as of October 1st

[tth2]

I'm very happy that Heritage is adding sales tax to more and more purchases made in the US.  All states should crank up their sales tax rate to 20% or more to help make up for their yawning budget deficits.