Adding Sales Tax stinks 0

[Junkdrawer]

Here in MA, our people on Beacon Hill got it right. Now if eBay, Heritage and whoever can stop charging it, that would be nice. 
https://www.mass.gov/letter-ruling/letter-ruling-85-54-comic-books

Edited December 24, 2019 by Junkdrawer

[James J Johnson]

1 hour ago, Junkdrawer said:

Here in MA, our people on Beacon Hill got it right. Now if eBay, Heritage and whoever can stop charging it, that would be nice. 
https://www.mass.gov/letter-ruling/letter-ruling-85-54-comic-books

Yes and no. A current issue sold at cover price, or a percentage of that if your comic shop has you on some % off subscription plan, falls under the category of a periodical, like a newspaper or magazine, thus is not subject to sales tax, just like any other current periodical.

Most of the comic books we discuss here are "out of print", no longer manufactured, thus fall within the realm of antiques and are very much subject to sales tax.

Also, in states designated by sales tax collection mandates for internet transactions, as far as ebay goes, the sales tax collection is beyond buyer or seller control. It's collected by ebay, that process bypassing the seller entirely and automatically. Unless a buyer or seller has a tax exempt resale certificate on file with ebay, sales tax will automatically be added to an invoice beyond a buyer or seller's control, other than just refusing to pay for or buy the item.

That's my understanding of sales tax collection on ebay and sales tax as it applies to the differences between periodicals and antiques.

Edited December 24, 2019 by James J Johnson

[the blob]

I posted a tax bulletin here from NY that basically said a used  comic sale is not taxable up to the cover price. Beyond cover sales tax applies. Good luck getting ebay to figure that out.

[Buzzetta]

17 hours ago, James J Johnson said:

Yes and no. A current issue sold at cover price, or a percentage of that if your comic shop has you on some % off subscription plan, falls under the category of a periodical, like a newspaper or magazine, thus is not subject to sales tax, just like any other current periodical.

Most of the comic books we discuss here are "out of print", no longer manufactured, thus fall within the realm of antiques and are very much subject to sales tax.

Also, in states designated by sales tax collection mandates for internet transactions, as far as ebay goes, the sales tax collection is beyond buyer or seller control. It's collected by ebay, that process bypassing the seller entirely and automatically. Unless a buyer or seller has a tax exempt resale certificate on file with ebay, sales tax will automatically be added to an invoice beyond a buyer or seller's control, other than just refusing to pay for or buy the item.

That's my understanding of sales tax collection on ebay and sales tax as it applies to the differences between periodicals and antiques.

Considering that it comes from the Massachusetts State Department of Revenue, I would say that they disagree with your assessment as far as Massachusetts' vested interest goes in the matter.  The Department of Revenue specifically names comics, old or current.  The issue raised to them was also to take into account comics sold as collectables. 

I cut and pasted the full response:

Quote

 

You request a ruling regarding the application of the Massachusetts sales tax to sales of comic books, INCLUDING OLDER COMIC BOOKS SOLD AS COLLECTORS' ITEMS.

Chapter 64H, Section 6(m) of the Massachusetts General Laws exempts from the sales tax sales of newspapers and magazines. The term "magazines" has been defined as "pamphlets published periodically, containing miscellaneous papers or compositions." Houghton v. Payne, 194 U.S. 88, 101 (1904)(dictum); see Letter Ruling 84-67; see also Letter Rulings 84-8; 84-4.

A comic book meets the definition of a magazine. Therefore, the sales of comic books, whether old or current, are exempt from the sales tax under Chapter 64H, Section 6(m).

 

 

[lizards2]

Every state gets its pound of flesh.  They just have different ways of flensing you.

We don't have sales tax here in Oregon, but we have a high rate of taxation on income and property tax to make up for it.

[wombat]

19 minutes ago, lizards2 said:

Every state gets its pound of flesh.  They just have different ways of flensing you.

We don't have sales tax here in Oregon, but we have a high rate of taxation on income and property tax to make up for it.

Same in NJ. We have extemely high property tax and income tax, but we make up for it with a really high sales tax. 

[ygogolak]

2 hours ago, Buzzetta said:

Considering that it comes from the Massachusetts State Department of Revenue, I would say that they disagree with your assessment as far as Massachusetts' vested interest goes in the matter.  The Department of Revenue specifically names comics, old or current.  The issue raised to them was also to take into account comics sold as collectables. 

I cut and pasted the full response:

 

They are using definition from a ruling from 1904. I’m not saying there isn’t validity to it, but nothing has changed with comics since then including how and where they are sold?

[James J Johnson]

13 minutes ago, ygogolak said:

They are using definition from a ruling from 1904. I’m not saying there isn’t validity to it, but nothing has changed with comics since then including how and where they are sold?

Periodicals should not be subject to sales tax unless it sold as a collector's items for more than the cover price. A comic book is identified as a periodical right in the publishing information!, "This periodical is published monthly by...…, " etc, etc.  I was under the assumption that periodicals sold as periodicals for cover price, were sales tax exempt everywhere in the US.

[ygogolak]

24 minutes ago, James J Johnson said:

Periodicals should not be subject to sales tax unless it sold as a collector's items for more than the cover price. A comic book is identified as a periodical right in the publishing information!, "This periodical is published monthly by...…, " etc, etc.  I was under the assumption that periodicals sold as periodicals for cover price, were sales tax exempt everywhere in the US.

It goes by the states definition I believe. For instance, a quick search brought up California’s definition which specifically includes things exempt from the term which I would deem relevant to comics today.

 The term "periodical" does not include books complete in themselves, even those that are issued at stated intervals, for example, books sold by the Book-of-the-Month Club or similar organizations; so-called "pocket books," a new one of which may be issued once a month or some other interval; or so-called "one-shot" magazines that have no literary or subject matter connection or continuity between prior or subsequent issues. 

[James J Johnson]

1 hour ago, ygogolak said:

It goes by the states definition I believe. For instance, a quick search brought up California’s definition which specifically includes things exempt from the term which I would deem relevant to comics today.

 The term "periodical" does not include books complete in themselves, even those that are issued at stated intervals, for example, books sold by the Book-of-the-Month Club or similar organizations; so-called "pocket books," a new one of which may be issued once a month or some other interval; or so-called "one-shot" magazines that have no literary or subject matter connection or continuity between prior or subsequent issues. 

I had a conversation around 2005 with a former hobby shop owner.about a sales tax auditor who insisted the same points made above! The auditor also talked about the comic lacking articles or news events, and other reasons, on and on, as to why it was not a periodical. The auditor insisted that the store owner owed sales tax on all newsstand issues (the only ones he sold) being sold or that had been sold since the store's inception. The store owner disagreed, walked over to the rack, took a comic back to the auditor, opened it up to the publisher's paragraph, and pointed to the comic being published as, and naming itself as a periodical, "This periodical is published monthly, by... etc., etc.". The auditor read the paragraph in its entirety, picked up his briefcase, audit aborted. He hadn't heard from the sales tax people again concerning comic books at that time when he related the incident to me, about 5 years after it happened to my understanding. . So at that time, that particular incident, that auditor, comics won out as being accepted for what it names itself as.

[Old_Man_Adam]

3 hours ago, wombat said:

Same in NJ. We have extemely high property tax and income tax, but we make up for it with a really high sales tax. 

Jersey native here as well ... the pay is good but the traffic makes me contemplate the meaning of life all too often 

[HuddyBee]

Mmmm... don't you just love the government?

[Buzzetta]

10 hours ago, wombat said:

Same in NJ. We have extemely high property tax and income tax, but we make up for it with a really high sales tax. 

I live in one of the villages located within one of the more corrupt townships of Nassau County on Long Island.

Every year someone in our local government is brought up on charges and/or going to jail. 

I feel ya... 

Edited December 26, 2019 by Buzzetta

[Buzzetta]

9 hours ago, James J Johnson said:

Periodicals should not be subject to sales tax unless it sold as a collector's items for more than the cover price. A comic book is identified as a periodical right in the publishing information!, "This periodical is published monthly by...…, " etc, etc.  I was under the assumption that periodicals sold as periodicals for cover price, were sales tax exempt everywhere in the US.

But that is the thing.  If Massachusetts is changing the definition or what they consider falls under the consideration of that definition, it is irrelevant on what anyone outside of the decision maker thinks on a state level.

Federal level is something else entirely. 

[ygogolak]

17 minutes ago, Buzzetta said:

But that is the thing.  If Massachusetts is changing the definition or what they consider falls under the consideration of that definition, it is irrelevant on what anyone outside of the decision maker thinks on a state level.

Federal level is something else entirely. 

They didn’t change the definition. They simply went but a 115 year old decision that was based on an even older case.

Are there things sold on eBay that are not taxed after the rules changed? Meaning, could comics potentially be excluded with this new ruling?

[slym2none]

On 12/24/2019 at 5:01 PM, James J Johnson said:

 

Most of the comic books we discuss here are "out of print", no longer manufactured, thus fall within the realm of antiques and are very much subject to sales tax.

 

Except in MA, apparently, because

Notice how it specifies "whether old or current".

-slym