Why is Reverb charging sales tax on an used amp in California?

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StratStringSlinger

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I just bought an used amp in California from a local person. When I went to go check out on Reverb.com I noticed they tacked on sales tax!? I wasn't aware that there is suppose to be sales tax on an used item. Does that sound right to you guys?
 

Jahn

Listens to Johnny Marr, plays like John Denver
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Yep new policy. Mirrors eBay now.
 

StratStringSlinger

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What!? Seriously. Why? Does that even align with the state laws? Where does the tax money go if CA law doesn't require it and Reverb collects it?
 

dcbc

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Speaking to my home state (appropriate avatar):

In Texas, an item bought from out of state over the internet and shipped to the buyer in Texas is subject to a "use" tax, which is equivalent to sales tax. But it seems like out of state sellers don't have to collect or pay this tax unless they have a physical presence within Texas. They can volunteer to collect this "use tax," but they do not have to. And as a buyer, I don't think I'm required to report uncollected use tax.

If your state does not require you to pay sales tax, but it is collected by an out of state internet seller, you can report it to your taxing authority using this form. According to the website I saw, Texas keeps tabs on these things. I figure other states do as well.
 

Gibson Dog

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What they said. Started months ago.
It started months ago with the big box stores but we (California) didn't start paying on facilitator sites until Mon. Beating a dead horse but they should have been collecting sales tax on NEW items 15 years ago but collecting Sales Tax on used items or multiple times on a single item is BS.
 

dcbc

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From Reverb's FAQ:

How State Sales Tax Applies to Reverb Orders
Based on applicable tax laws, Reverb will calculate, collect, and remit sales tax for orders shipped to customers in the following state(s):

State Date
Alabama Live
Arizona Live
Arkansas Live
California Live
Colorado Live
Connecticut Live
Idaho Live
Indiana Live
Iowa Live
Kentucky Live
Maine Live
Maryland Live
Massachusetts Live
Minnesota Live
Nebraska Live
Nevada Live
New Jersey Live
New Mexico Live
New York Live
North Dakota Live
Ohio Live
Oklahoma Live
Pennsylvania Live
Rhode Island Live
South Carolina Live
South Dakota Live
Tennessee Live
Texas Live
Utah Live
Vermont Live
Virginia Live
Washington Live
Washington DC Live
West Virginia Live
Wisconsin Live
Wyoming Live
 

Gibson Dog

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What!? Seriously. Why? Does that even align with the state laws? Where does the tax money go if CA law doesn't require it and Reverb collects it?
They're collecting sales tax FOR the States - EVERY PENNY of it goes to the State. Big Box stores have been doing it for months or longer but the facilitator sites reverb, ebay etc didn't start collecting tax from us until Mon we were in the last batch.

They should have been collecting sales tax on NEW items 20 years ago but charging tax on used & likely collecting tax multiple times on a single item is BS. It is what it is though & this has been talked about extensively & the sites have sent multiple emails with details so I'm surprised you missed it.
 

Gibson Dog

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This is because they have a physical presence in the buyer's state, most likely.
That's right & that's how it's been for years but now it doesn't matter unless your state doesn't have sales tax you're paying sales tax on everything you buy on ebay, reverb or whatever. It's BS on used items which in some cases they'll collect tax multiple times on a single item but it is what it is.
 

voodoosound

Funk & Grooven member
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That's right & that's how it's been for years but now it doesn't matter unless your state doesn't have sales tax you're paying sales tax on everything you buy on ebay, reverb or whatever. It's BS on used items which in some cases they'll collect tax multiple times on a single item but it is what it is.
If you think about how many times some guys flip guitars and or amps. It's easy to foresee tax on a musical item equaling the value of the item. How's that for double, triple, quadrupole taxation.

For those of you that remember the days of the recycler with in person cash meetings. I see that coming back strong.
 

calieng

Member
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I believe CA tax on Reverb just started on the 14th of the month.

I went on a buying spree before it kicked in because I will no longer be buying on there as much now. The tax effectively kills any hobby buying and selling of gear because there is now no way to make a few dollars or even break even for those of us who like to buy and sell to try out different gear.

I guess I will be a regular in the marketplace here now to feed my GAS.
 
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