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

Discussion in 'Amps and Cabs' started by StratStringSlinger, Oct 16, 2019.

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  1. StratStringSlinger

    StratStringSlinger Supporting Member

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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?
     
  2. Jahn

    Jahn Listens to Johnny Marr, plays like John Denver Supporting Member

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    Yep new policy. Mirrors eBay now.
     
  3. zzzzzzz

    zzzzzzz Supporting Member

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    Reverb is doing tax on everything. Makes it better to buy used gear on TGP :)
     
  4. Jerrod

    Jerrod Silver Supporting Member

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    What they said. Started months ago.
     
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  5. StratStringSlinger

    StratStringSlinger Supporting Member

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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?
     
  6. eclecticsynergy

    eclecticsynergy Member

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    Guitar Center is now charging tax and shipping on used gear, even if you choose instore pickup.
     
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  7. dcbc

    dcbc Member

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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.
     
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  8. Gibson Dog

    Gibson Dog Silver Supporting Member

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    Unless you live in a State without Sales Tax GC has always charged sales tax on everything.
     
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  9. dcbc

    dcbc Member

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    This is because they have a physical presence in the buyer's state, most likely.
     
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  10. Gibson Dog

    Gibson Dog Silver Supporting Member

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    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.
     
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  11. dcbc

    dcbc Member

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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
     
  12. Jerrod

    Jerrod Silver Supporting Member

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    Pretty sure you're paying tax to your state, not CA.
     
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  13. eclecticsynergy

    eclecticsynergy Member

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    But adding shipping charges to instore pickups is a new policy, I think. That's why I put it in italics.
     
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  14. Gibson Dog

    Gibson Dog Silver Supporting Member

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    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.
     
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  15. PaisleyWookie

    PaisleyWookie Member

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    Basically, tax is being double dipped. Sales tax on new, sales tax on used, even when it's from a private individual.
     
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  16. voodoosound

    voodoosound Funk & Grooven member Silver Supporting Member

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    This is going to further crush the sales of gear. If that isn't evident with all the gear for sale in the emporiums. Reverb and eBay are a no win for anyone.
     
  17. Gibson Dog

    Gibson Dog Silver Supporting 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.
     
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  18. voodoosound

    voodoosound Funk & Grooven member Silver Supporting Member

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    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.
     
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  19. Gibson Dog

    Gibson Dog Silver Supporting Member

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    Okay, sorry I misread it. I don't know anything about the shipping between the stores so I have no comment on that one.
     
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  20. calieng

    calieng Silver Supporting 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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