Reverb and Sales Tax Question

Discussion in 'Guitars in General' started by bob77362, Jul 21, 2019.

  1. bob77362

    bob77362 Supporting Member

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    So I've read all the docs on the site and I'm still confused. I live in a marketplace state, Ct.. I sell a couple USED guitars a year. Do my buyers have to pay sales tax on my used guitars, even though I'm small time? That seems ridiculous.

    What about buying a used guitar from a non-dealer in another marketplace state?

    Really sucks if that's the case. It's not a used car. I'll be sticking with Craigslist for future buying and selling if that's where we're at.
     
  2. Jon C

    Jon C Silver Supporting Member

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  3. big mike

    big mike Plexi Loving Admin Staff Member

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    There’s been about 10 threads and each one gets peoples knickers in a twist.

    I don’t have the answer but I think that reverb will collect tax on it.

    Double check with them IMO.
     
    derekd likes this.
  4. bob77362

    bob77362 Supporting Member

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    Their docs don't explain it clearly. I don't understand how Nexus applies to someone like me. I'll try to find a chat or easy way to contact them.
     
  5. Jabby92

    Jabby92 Member

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    Yes, it looks this way. In Canada we have millions of dollars of unclaimed taxes from selling used goods. If you sell it locally, you could technically pocket the cash but on Reverb it looks like they are covering themselves and forcing you to charge tax. What I would suggest is selling the guitar for what you want tax included. Its really not that confusing.
     
  6. specialidiot

    specialidiot most likely to seceede Gold Supporting Member Supporting Member

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    If you buy a product then depending on the state and local rates you owe a tax on it. Some states have waived sales tax on items like food and clothing. Otherwise you owe.

    It's been a dilemma for online sales but it's getting sorted out. Up until now you are supposed to send in your sales tax for out of state online purchases - my business accountant has a worksheet for me to fill out for products and licenses I buy.

    Now the bigger online retailers are complying.

    You have always owed sales tax. It's nice that Reverb is taking care of that for sellers.
     
    derekd likes this.
  7. edwarddavis

    edwarddavis Supporting Member

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    I had the same question and I lived I CT
    They deleted the post said it was political

    Why are we paying tax again and charging tax again on used items
    This pay pal eBay etc
    It’s nit right
    I can see on new stuff but it’s a charge so who keeps the money
    It’s not going to the state to help it
    Is this all states or just the the taxed to death state of Connecticut
     
  8. Otter351

    Otter351 Member

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    Location:
    Silicon Valley
    I paid sales tax on a guitar I bought from Chicago Music Exchange (Reverb owned) but they have yet to start collecting sales tax on other sellers' items. It's coming though, buy your big-ticket item now if you can
     
  9. iced_earth

    iced_earth Supporting Member

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    Quick Summary:

    The Wayfair decision changed sales tax collection requirements - previously a company needed an in-state presence to collect sales tax, now only "economic nexus" is required. Economc nexus is established in 2 ways:

    -Sales in terms of # of transactions or over a certain total dollar amount in a particular state. There are different thresholds for different states.
    -Marketplace nexus, established my participating in a national marketplace such as Ebay, Reverb, or Amazon. In theory, if you participate in a marketplace like this, even sales outside of the marketplace to different states would be considered taxable.

    I don't have all the details, and the implementation/states participating/thresholds are evolving. Be prepared for every state to charge sales tax for interstate sales within a few years.
     
    derekd likes this.
  10. derekd

    derekd Member

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    We have always paid taxes on used items.

    Used bookstores, used clothing stores, and used car lots have always charged sales tax (if applicable in that state) upon the point of sale. We are just now seeing the ST laws come around for online purchases.

    In the past, online sales, both new and used, were a pretty small percentage of national sales. In recent years, we have seen an explosion of online sales due to Amazon et al.
     
  11. baiff

    baiff Member

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    Remember the good old days where you could browse thru the penny saver ads and make a deal with someone without getting murdered? We need those back.
     
  12. Coolidge

    Coolidge Member

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    Check your orders, one of the major tube dealers charged me more than double the sales tax that was due recently because they were calculating the tax wrong. Just saying.
     

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