Gold Supporting Member
A local store has a guitar I may be interested in that is on consignment. Should you have to pay tax on the full amount of the purchase or only on the approximate 15% that the store will make?
I fine that intereesting since if I bought the guitar directly from the owner I wouldn't pay tax, The store is only making a fee. On a trade in you only pay tax on the difference..............
If you bought the guitar from the owner most states would deem it a casual sale and not impose the tax. Each state is different on how this is handled, if its not covered in statutes then it is most likely addressed in regulations.
As I understand it , in that sort of a sale the buyer still owes the tax and would file the forms, etc. This would be a strict interpretation; in reality no one is going to enforce this, except on large items like a vehicle.
I think it wierd that a store would enforce this at risk of losing a sale. A big box chain store, maybe, but a with mom&pop store it would be unlikely that they would enforce it (especially at risk of losing a sale) and/or report the full sale properly.
Also, to answer your question about whether you should pay the full tax, the real answer is a question....How bad do you want the guitar?
Just my thoughts.