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Discussion in 'Guitars in General' started by COYS, Feb 26, 2020.
I used to spend a lot more via Sweetwater to avoid sales tax
Not that I planned on buying much more music gear but, I’ve definitely lowered my amount of eBay purchases for anything I’d normally get non music related as well because of sales tax. Spend less time window shopping on eBay and reverb for music stuff too because of it.
As a seller of used gear, I think the buyers feel it and sales have not been as good for me. People have come across as being more price-conscious in the past year. Maybe unrelated but sales tax probably has something to do with it.
As a buyer, to me it means that there is no cost disincentive when buying in state for purchases under $1k and I don't have to work so hard to determine my cost. It also means I have less to pay the state when filing taxes because taxes are collected when I buy.
Yeah, it has slowed my buying and selling tremendously. I don't think I will ever be at the level it was 5 years ago. My dollars don't go as far as in the he past.
I don’t like paying property taxes, automobile taxes, or hotel taxes.
But I live in a house, drive a car, and occasionally stay in a hotel.
The taxes impact me, and they aggravate me, but I don’t let that stop me.
Since most of my online purchases are from another country, I’ve always paid tax when it crosses the border. So no impact on me.
I'm sure you are right, but speaking for myself, I paid state taxes on gear purchases online and out of state at the time of filing, so there was no actual change. The money's just paid up front now.
As far as buyers moaning about discounts and wanting the seller to absorb the cost ... well, that's just not how taxes work. Yesterday, today or tomorrow. You have to take some of it with a grain of salt though ... it's the oldest trick in the book when trying to negotiate the best deal to get the seller to weep for your disadvantaged state. Don't sell below the lowest price you've set and don't set the price above what is realistic. It'll work out.
No, they just aren't collecting the tax from you. They didn't eat anything and technically you aren't off the hook either. It's suppose to be your responsibility to pay it when you file.
Don't shoot the messenger.
No major effect. I'm in a giant market for gear and didn't really ever use Reverb or eBay much, rarely used GC. Local sellers don't charge sales/use tax.
Online retail transactions have always been taxed. It was up to the buyer to voluntarily report and remit to their state, but taxing them is nothing new.
Compliance was poor, so the Wayfair decision just shifted collection to the time of sale, and the responsibility to collect from the buyer, on the seller.
I haven’t had any slow down in online sales.
There are basically only a handful of buying avenues, and almost all are equalized by the tax.
Buy new, locally. Pay local tax.
Buy new online. Pay local tax, possibly shipping.
Buy used, locally from a store. Pay local tax.
By used online. Pay local tax, possibly shipping.
Buy used, local private sale. Whee! No tax.
Buy used, online (forum) private sale. Whee! No tax.
Note - the last two options also offer the most limited choices with regard to availability, price, and condition.
If the vast majority of buying options are taxable - which they are - unless a person finds their widget locally, or on a forum, then the playing field is level.
The worst part about these repetitive online tax threads is the unabashed bootlicking.
I'm in Ontario, Canada, and the taxes we pay here on everything would make most of you Americans cringe. A few more points won't affect me.
If anything, when I do buy a guitar from a US store, I'll be more likely to buy it from HOG in Rochester, NY, since I'd be paying tax anyways, and that means less risk since I'd put my hands on it first.
For selling, there has been no impact to my behavior, as places like Reverb and eBay collect the tax separately rather than bundling it in to the list price...at least for now.
For buying, I no longer buy big ticket items on Reverb or eBay, although I'll occasionally look there and then reach out to the sellers directly for off platform transactions. For the big box stores, I haven't bought anything from Musicians Friend in ages, but they have a presence here in CA so sales tax was always a factor. I used to shop at Sweetwater, but with the new tax rules, I no longer do. I still buy from smaller shops who don't reach the business threshold to be considered an economic nexus and there are a couple medium sized shops that allow me to purchase through my LLC, and avoid tax as a business to business transaction.
I take a much harder look at the emporium here as well. I would venture to guess that the emporium sales have probably seen an uptick since the tax law change
in Los Angeles its almost 10%, on a $3500 guitar, of which I have several, that's $350, which is quite meaningful.
I don't even bat an eyelash at tax on sub $200 sales, but if you're shopping for a James Tyler guitar that clocks in at $5149, that tax is a big bite.
Just sold a Boss Gt100 for $275. After paypal, $268. Packaging and shipping costs $107 for regular ground delivery fed ex to another state! And after ebay takes their cut, I will be lucky to walk away with $150. Might as well have went to GC and sold it there.
I live in a sales tax free state so not a big issue. I guess it might be if I'm ever selling?
That said, I think charging tax on online purchases is only fair to local business who are already at a disadvantage due to lower volumes sold. The one bit I don't quite understand is used items being taxed, I swear years ago when I lived in sales tax states only new purchases were taxed.
$107 for packing and shipping??? Ridiculous!
You need to get a UPS account with discounts and consider doing the packing yourself!
I called Chicago Music Exchange recently on a used item to see if they could do any better on the price and tax and they wouldn't budge on either. Some stores are advertising on their websites if you buy from them directly via their shopping cart or by phone and you live out of state, you can avoid sales tax. Makes me wonder if Chicago Music Exchange is even paying the sales tax they are charging? How can they keep up with sales tax rates of all 50 states and county jurisdictions?
You're not kidding! It's unreal
It has bothered me but hasn’t stopped me. It has lowered my price bracket.