Sales tax on Reverb

Tama CW

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They are taxing the "value" of that item. In essence, taxing the "object." If the object had no value, there would be no tax. And the fees/commissions are not based on the item's listed price....but that price + shipping + sales tax rolled in.
 

bongomania

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“In essence” is just something your imagination is suggesting though. The express purpose is to tax transactions.
 

Tama CW

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“In essence” is just something your imagination is suggesting though. The express purpose is to tax transactions.
More than just "essence." This tax article from the Brookings Institute never mentions the word "transaction." What is mentioned is a tax on consumer goods and services.....a consumption tax. Percussion instruments and gear are "goods"....objects if you will. They go on to mention the words "tangible goods." I had to go to my state sales tax site to find the word "transaction." But that transaction involves the consumed items that are being taxed. No imagination is needed to see this difference. I don't see where my view is any less correct. If the transaction has no value, there is no sales tax. So it must involve the value of the items (ie the final goods and services that are consumed.....a consumption tax).

https://www.taxpolicycenter.org/briefing-book/how-do-state-and-local-sales-taxes-work

https://www.investopedia.com/terms/s/salestax.asp

https://www.cga.ct.gov/fin/tfs/20140929_State Tax Panel/20151027/Sales Tax Fox 10 16 15.pdf
 
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bongomania

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Fair enough, but note those articles specifically describe the SALE of goods to an end user, not the existence or manufacture of those goods. No distinction is made in either article between new and used sales.
 

tillerva

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True, an item can be taxed when sold new, and every time thereafter that is resold.
 

dboomer

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What I don't like is sales tax being charged on used items that were already taxed when you first bought them!
That always bothered me too. But the
alternative would look something like the VAT taxes in Europe. They only charge tax the first time, but the standard rate is 20%.

So which one do you want?
 

NewBeat

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Sales taxing used items is psychotic. It started with used cars, as there's too much money involved not to do it, and I'm sure new car dealers were lobbying all over taxing used cars to "level" the playing field. Now it's everything.

In a way, it's the flip side of planned obsolescence. Either everything new breaks and is worthless after a few years or anything used has to be taxed every time it changes hands; otherwise, the states apparently collapse from lack of revenue.
 
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dustjacket

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Is there any way to find out how much money your state received in online tax for a year and what is was used for?
 

ARGuy

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Is there any way to find out how much money your state received in online tax for a year and what is was used for?
I'm sure it's used for the same things that non-online sales tax is used for. It is still sales tax.
 

musiqman

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That always bothered me too. But the
alternative would look something like the VAT taxes in Europe. They only charge tax the first time, but the standard rate is 20%.

So which one do you want?
Unless you buy from outside the EU. Than you stillnget taxed on second hand stuff.

That really annoys me.
 

DavedrumsTX

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I recently purchased a cymbal on Reverb and was unknowingly hit with sales tax, bringing the purchase price up (guess I haven’t bought/sold anything on there for awhile but anyway....)
This week I SOLD another cymbal and my sale revenue was REDUCED by the tax amount.
So I was charged sales tax as both the buyer and the seller. How does that work?
Yes, the tax issue has made Reverb much less attractive than it once was. However, it’s still better than having to meet Charles Manson in a Home Depot parking lot for a Craigslist sale.
 

Tcat

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Personally, sales tax on any used item has always baffled me, especially in-state. The item was already taxed at full value when bought new.
 

FlowTom

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I've been trying to find out how states are planning to use the sudden influx of revenue from online sales tax collection. Or how they would be using the money if there wasn't a pandemic. I haven't found a lot of info out there thus far. Mainly that the amount of revenue is rising fast.
 

Piggpenn

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I'm not saying I agree with it, but you get taxed if you buy on line or go local.

For a time, buying on line with free shipping and no tax was the only way I made purchases. Once the tax started hitting, the on-line purchases lost a lot of their attraction.

Bottom line, one way or another you pay tax.

The nice thing about Reverb is they do all the work for you. You don't have to manage or track anything. From the seller stand point, nothing really changed other than maybe a few less sales since buyers think they are some how going to get out of paying the sales tax. I am not reducing my sales price which in turn meant I just ate the tax.

When this first went into play there we only a handful of states that were on Reverb's tax list. That list kept on and probably is still growing. I'm not sure all 50 states are participating yet so if you get to purchase and don't pay tax, that state hasn't "WOKE" yet. :)
 

ARGuy

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I'm not saying I agree with it, but you get taxed if you buy on line or go local.

For a time, buying on line with free shipping and no tax was the only way I made purchases. Once the tax started hitting, the on-line purchases lost a lot of their attraction.

Bottom line, one way or another you pay tax.

The nice thing about Reverb is they do all the work for you. You don't have to manage or track anything. From the seller stand point, nothing really changed other than maybe a few less sales since buyers think they are some how going to get out of paying the sales tax. I am not reducing my sales price which in turn meant I just ate the tax.

When this first went into play there we only a handful of states that were on Reverb's tax list. That list kept on and probably is still growing. I'm not sure all 50 states are participating yet so if you get to purchase and don't pay tax, that state hasn't "WOKE" yet. :)
I haven't sold anything on Reverb, but everything that I have purchased has sales tax added to the purchase price at checkout. So if I buy something for $100, my sales tax rate is 7%, so I pay $107 plus shipping. Are you saying that, as a seller, you've had buyers that expect you to sell a $100 item for $93.35 (assuming a 7% tax rate)?
There are 5 states that don't have a sales tax - Alaska, Oregon, Montana, Delaware and New Hampshire - so if you live in one of those states, you're not paying sales tax no matter what.
 

NewBeat

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It is a bit of a burn that sellers pay fees on the tax.
I did several rounds with PayPal on this. All I ever got was unrelated boilerplate in response. When I would follow up, a different employee would respond with additional unrelated boilerplate. They could in no way justify charging the seller the PayPal fee on collected sales tax. Essentially, their response was, "We charge the seller a fee on the collected sales tax because...(garbled)....go away, please ."
 

badknees

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Excuse me if I missed this in earlier posts. Why do you pay sales tax on the shipping cost? To my way of thinking only the cost of the item should be used to calculate tax. Although this may be the government's way of preventing people from selling items for virtually nothing and then charging exaggerated shipping cost.
 

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