Heritage now charging NC Sales Tax

[movieposters]

ugh...just got e-mail from HA re: charging North Carolina sales tax - wondering if this is taking place in other states, as well? 

Dear Mr. Ryan,

Please note: As of October 1st, Heritage Auctions will be required by state law to charge applicable sales tax on any items delivered to addresses in North Carolina for the following categories: Art & Antiques, Comics, Entertainment, Historical, Jewelry, Timepieces & Luxury Accessories, Movie Posters, and Sports.

Exemptions include dealers with valid sales tax numbers who are purchasing for resale and who furnish us with a properly completed resale certificate for North Carolina.

Please see paragraph #25 in our Terms and Conditions for more complete information.

[Antoine1973]

I've always been charged NY sales tax on everything I won at Heritage for years, so I don't think this is anything new.  I'm surprised you never had to pay sales tax until now, so consider yourself lucky.

[Harry Caul]

They just announced for SC too.  Luckily I have a tax ID for my business so sales tax is waived if the posters are intended for resale. 

[movieposters]

Collection of sales tax is just becoming more common for many states.  All came about from Supreme Court ruling in June '18 granting states authority to enforce collection.  Prior it was based on having physical presence within that state.   Many businesses have across-the-board been collecting for some time (Amazon), others have been selective...

https://www.forbes.com/sites/greatspeculations/2018/06/26/dissecting-supreme-courts-internet-sales-tax-decision/#546bb5323fbe

[ddilts399]

Expect to see this across the board in the next couple years at the latest.

Luckily for many sellers, a lot of states have a sales thresh hold you have to meet. Would imagine Bruce will need to start collecting soon as well.

[redman]

ooooh so does this mean all the super rich poster buyers havn't been been paying correct taxes 

[erik1925]

Nope. It just means that as this goes into effect across the country, that states where collectors live that were not charged sales tax by HA previously, now will be, from that point forward.

HA cant go back and charge sales tax from prior auctions.

[redman]

how come NY buyers have been paying sales tax for years ? (posted from someone else) and other states havn't?
btw i'm from UK, but it does sound weird from this distance

[erik1925]

how come NY buyers have been paying sales tax for years ? (posted from someone else) and other states havn't?
btw i'm from UK, but it does sound weird from this distance

The new Supreme Court ruling explained:

https://techcrunch.com/2018/06/21/states-will-be-able-to-charge-sales-tax-on-online-purchases-thanks-to-the-supreme-court/

Overturning the 1992 ruling, where it was sited that a company charging sales tax to a buyer in another state had to have a physical presence in that state, as well:

https://taxfoundation.org/important-tax-cases-quill-corp-v-north-dakota-and-physical-presence-rule-sales-tax-collection/

[redman]

thanks.

"It’s a huge win for vendors with physical storefronts, which have long argued that their online counterparts enjoyed an unfair advantage because they didn’t have to charge customers local sales tax."

i actually agree with this. also a big problem in UK with high street stores closing etc.

i still find it weird that HA charged tax to NY people and not others

[erik1925]

thanks.

"It’s a huge win for vendors with physical storefronts, which have long argued that their online counterparts enjoyed an unfair advantage because they didn’t have to charge customers local sales tax."

i actually agree with this. also a big problem in UK with high street stores closing etc.

i still find it weird that HA charged tax to NY people and not others

HA has offices in NY as well as here in CA, so buyers from CA who purchase from HA also are charged sales tax. Again, it was because HA has physical office locations in those states, as well as in TX. So it wasnt just NY buyers.

[redman]

gotcha. in some ways USA is just a load of different countries all combined?
if i was to live there it would have to be NY so i would have been paying sales tax since forever 

[erik1925]

gotcha. in some ways USA is just a load of different countries all combined?
if i was to live there it would have to be NY so i would have been paying sales tax since forever

If you had only been buying from HA, then, yes, that would be the case.

What is interesting is that Ive bought from HA's ebay listings, and was charged no sales tax, even though Im also in CA. So the various sales tax laws and how they apply must be various.

[guest4955]

Well as I recall, consumers have always been required to report out-of-state purchases and pay apropos sales taxes.

Nobody ever did but that charade is ending:



I've probably mangled the law but somebody else can elucidate...