• When you click on links to various merchants on this site and make a purchase, this can result in this site earning a commission. Affiliate programs and affiliations include, but are not limited to, the eBay Partner Network.

Heritage - adding Sales Tax to more states
1 1

Started by Catwoman_Fan,

134 posts in this topic

Twanj

Twanj

Posted
Posted
36 minutes ago, Pete Marino said:

All of a sudden 80% of heritage's clients live in Florida and Nevada.

To avoid sales tax?

They have an office in Palm Beach, Florida...and pretty sure tax is coming if it's not already here.

Link to comment
Share on other sites
namisgr

namisgr

Posted
Posted (edited)
8 minutes ago, delekkerste said:

Does someone have a list of the states which are still exempt? 

Purely for informational/educational purposes of course. :foryou: 

Partial information - the five states that don't have a sales tax:

Alaska.

Delaware.

Montana.

New Hampshire.

Oregon.

 

Edited by namisgr
Link to comment
Share on other sites
delekkerste

delekkerste

Posted
Posted
1 hour ago, zhamlau said:

Again, who really thought any state was not going to find a way to jam in more taxes? To them, the peasants keep entirely way to much of the Crown's coin as is. I'm surprised we haven't had a direct page-rate tax yet.

Sadly, this is going to effect resale values as well.  The old argument about how people will just incorporate the taxes into the number they bid might work fine for the buyers, but, not for sellers.  Assuming that buyers will budget the same amount for the art they want, here's how things would shake out:

Pre-sales tax (assuming 20% BP and seller's commission waived):

Pre-BP final price:  $10,000

BP:  $2,000

Sales tax:  $0

Total price paid by buyer:  $12,000

Seller gets:  $10,000

Post-sales tax (assuming 20% BP, seller's commission waived, 8% sales tax and the final price not having to end exactly on a standard bid increment for illustrative purposes):

Pre-BP final price:  $9259.26

BP:  $1851.85

Sales tax:  $888.89

Total price paid by buyer:  $12,000

Seller gets:  $9259.26

Everything else being equal, the seller realizes 7.4% less. Insidious!! :preach: 

Link to comment
Share on other sites
jjonahjameson11

jjonahjameson11

Posted
Posted
On 8/29/2018 at 4:51 AM, chromium said:

All valid points and I don't disagree at all...only problem is that the system is crumbling and that I'm pretty sure the end is in sight. My retirement age was postponed with 9 more years in one fell swoop last year and while for over 50 years 90% of the Belgians were relatively well off, now over 15% don't have enough in the bank to cover one month's wages. Healthcare is feeling the crunch too, at least a proper college education is still very cheap compared to the US. But then again we no have no natural resources at all,

We are not particularly smart in comparison with other countries, but I just want to state that our brains or maybe more correct our level of education is all we have.

In Belgium we invest ca 5–6% of our gross national product in education.

I had a Belgian roommate several years ago And whilst I do not judge a country based on a single individual, let me just say that his level of education did not align to your National standard.

Link to comment
Share on other sites
chromium

chromium

Posted
Posted
2 hours ago, jjonahjameson11 said:

I had a Belgian roommate several years ago And whilst I do not judge a country based on a single individual, let me just say that his level of education did not align to your National standard.

That's why we deported him over there.

Link to comment
Share on other sites
Peter L

Peter L

Posted
Posted
23 hours ago, Twanj said:

To avoid sales tax?

They have an office in Palm Beach, Florida...and pretty sure tax is coming if it's not already here.

Does anyone know why Heritage would open offices in different states?  Is there an advantage to that?  It seems like that is just wasted rent as they could operate from one or two locations.  

Link to comment
Share on other sites
namisgr

namisgr

Posted
Posted (edited)
32 minutes ago, cstojano said:

AZ as well

Arizona has a 5.6% sales tax.  Perhaps Heritage lacks an office there and so hasn't begun collecting it yet.

 

Edited by namisgr
Link to comment
Share on other sites
delekkerste

delekkerste

Posted
Posted (edited)
22 hours ago, Revenire said:

What about Colorado? 

No longer a Heritage tax haven.  They started collecting tax there effective Sept. 1.  

Is Connecticut still HA sales tax free?  If it is, I know it won't be for long, but, I don't recall CT being affected to date (I wish there was a master list somewhere that people could check). 

Anyway, adding to transaction costs should, theoretically, depress both prices and liquidity (as I showed in the example above).  Even if you're able to buy something tax-free from another collector or whatnot, the perception of values and liquidity across the marketplace will be adversely affected by the biggest auction player soon to be collecting taxes in every state that levies one.  Doesn't exactly make me want to buy anything that's less than a true must-have, frankly. 

Edited by delekkerste
Link to comment
Share on other sites
PhilipB2k17

PhilipB2k17

Posted
Posted
On ‎9‎/‎21‎/‎2018 at 10:50 AM, delekkerste said:

Does someone have a list of the states which are still exempt? 

Purely for informational/educational purposes of course. :foryou: 

Yeah. I'm totally not interested in setting up a subchapter S corporation in a state without an online sales tax, and making purchases of comic art through that entity. No siree Bob! (Seriously, IRS. I'm not).

Link to comment
Share on other sites
tth2

tth2

Posted
Posted
10 hours ago, delekkerste said:

No longer a Heritage tax haven.  They started collecting tax there effective Sept. 1.  

Is Connecticut still HA sales tax free?  If it is, I know it won't be for long, but, I don't recall CT being affected to date (I wish there was a master list somewhere that people could check). 

Anyway, adding to transaction costs should, theoretically, depress both prices and liquidity (as I showed in the example above).  Even if you're able to buy something tax-free from another collector or whatnot, the perception of values and liquidity across the marketplace will be adversely affected by the biggest auction player soon to be collecting taxes in every state that levies one.  Doesn't exactly make me want to buy anything that's less than a true must-have, frankly. 

I'm happy to establish a clearing house for Heritage buyers and sellers in Hong Kong. lol

Some consulting company proposed a sales tax here a few years ago to diversify the government's sources of revenue.  I think a lynch mob appeared outside their door the next day and there's been no discussion of sales taxes since then.

Link to comment
Share on other sites
Will_K

Will_K

Posted
Posted (edited)

A while back, HA put up a blurbs to notify us that they would start collecting sales tax. 

It would be nice if HA factored the buyer's premium AND the sales tax when showing you the next bid increment info.

Does anyone know if there's a legal reason not to do that ?  Or is it that knowing the sales tax would just depress bidding ?

Also, when an online retailer/auctioneer sends the tax $$$ to the state, do they tell the state who was the purchaser ?

Edited by Will_K
Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
1 1
Go to topic listing