Buyers pay more fees: Heritage email on honoring State Sales tax
synchr
Posts: 1,401 ✭✭✭✭
I received an email stating Heritage auctions will be changing their policy on State sales taxes and by the next auction (which I already have bids on) then I must pay those to my State even though Heritage has no presence in my State.
Did anyone get the same?
Anyone else considering getting a PO Box in sales tax free places, like Oregon...
Thank you
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I got the same message. I was going to bid on a note in the next sale. When I figured the minimum bid plus the buyers fee plus the sales tax it is more than the note is worth. Even if I get a dealer to bid and then ship to me it is very ,very marginal. I will pass.
I have been bidding with them for almost 20 years and over that time the fees have really started to add up ...
"Please note: As of September 1st, Heritage Auctions will be required by state law to charge applicable sales tax on any items delivered to addresses in Massachusetts for the following categories: Art & Antiques, Coins (for purchases less than $1,000), Comics, Currency, Entertainment, Historical, Jewelry, Timepieces & Luxury Accessories, Movie Posters, and Sports."
In Mass, as long as you spend more $1000...no sales tax...guess I'll have to just buy more!
Did not receive a letter because currency and coins are exempt from sales tax in South Carolina so, for me, full speed ahead on bidding!
Member ANA, SPMC, SCNA, FUN, CONECA
I was notified months ago that Heritage would begin to collect sales tax on notes shipped to NJ addresses starting January 17, 2018 unless the buyer has a sales tax number. With the NJ sales tax rate currently 6.625%, I'm bidding one increment lower on lots I'm interested in than I would have bid if I didn't have to pay the sales tax. Heritage has no physical presence in NJ at this time. If I get outbid by someone who doesn't have to pay the sales tax, so be it.
Separately, as the buyer's premium went from 15% to 20% now, I also reduced my hammer bids to reflect the higher buyer's premium. It's just common sense as it's the all-in number that I have to pay that's relevant, not the hammer number or the pre-sales tax number.
Yup, Hawaii is included !!!
Is Florida and Illinois still sales tax free for the currency?
Boy that sucks but it's nothing new for me. Sadly I have always had to pay California sales tax on HA notes and it's often times made the note far too expensive for me to buy. If it wasn't for sales tax I would be buying a lot more notes.
Top of the recent auction is a banner stating
"_**For Currency: Effective September 1st, Heritage Auctions is required by state law to charge applicable sales tax on any items in this category delivered to addresses in the following states: Colorado, Massachusetts, Michigan (for World Currency only), Oklahoma, Rhode Island, Washington. Exemptions include dealers with valid sales tax numbers who are purchasing for resale and who furnish us with a properly completed resale certificate, for the states listed above. See paragraph #25 in our Terms and Conditions for more information.
NOTE: Please visit our other categories regarding other states with applicable sales tax.**_"
I was just thinking of posting on this subject. The response from my question to Heritage made things even more confusing.
Does anyone know if a purchase from auction and shipped to a Minnesota address will be charged Minnesota sales tax? According to the above post, no. With all the confusion, it seems like it would be smart for Heritage to have a simple bid/BP/sales tax calculator for their auctions. Thanks in advance.
the Seller suppose to charge tax on the item to Minnesota resident. if the seller doesn't collect the tax, the buyer must pay "use tax" on the item
All states will be charged tax (except where exempt by law) by 1/1/2019, per my last face to face at Heritage. Helps me because I've been getting an 8.25% knucklebuster for a decade,.
Helps me because I've been getting an 8.25% knucklebuster for a decade,.
Not against me because, in South Carolina, currency and coins ARE exempt by law from sales tax. I would suggest that the folks in the high-tax states should: a) lobby your legislators to change the law or b) consider moving to a low tax state.
Member ANA, SPMC, SCNA, FUN, CONECA
As of Sept 1, The Great State of Washington will now be gladly accepting your 10.6% contribution to their Sales Tax coffers - Thank you very much.
There will be no promise of using it wisely ....
https://www.seattletimes.com/seattle-news/transportation/levy-backers-foes-spar-over-whether-city-broke-earlier-vow-to-fix-roads/
10.6% OUCH!!!
changed my shipping address to my son's house in NH...no sales tax
I got the email, but I understand that currency is supposed to be exempt from sales tax in WA, along with coins and bullion. Do you know if Seattle are dealers are charging tax?
Why does anyone still buy from them? I hear nothing but bad about the fees, etc.
Collecting small-size star notes.
Mishawaka, IN
They have what others don't.
Agreed.
Personally, I add in the fee and tax when bidding....ultimately, it’s the seller that may not realize the full potential for lower priced notes.
Why does anyone still buy from them? I hear nothing but bad about the fees, etc.
If I didn't buy from Heritage, I would only have about half the notes in my collection. If I had passed, I'm sure a few of the notes would eventually have turned up on eBay at two or three times what they sold for in the Heritage auction - would you please explain how that method of collecting makes any sense?
Member ANA, SPMC, SCNA, FUN, CONECA
2ndCharter, I agree with you 100%. I’ve been enjoying reading and learning from your knowledgeable posts here for years. I hope you will consider to post in the other forum too.
Unfortunately in Washington currency is not exempt, only coins and bullion.
https://dor.wa.gov/get-form-or-publication/publications-subject/tax-topics/currency-and-coin-sales
Stack's Bowers auctions just started to charge sales tax, too.
In Illinois, yes, but with the Governor's race going on and the Democrat promising new taxes, I wonder how long the sales tax exemption will stay in place. After November, we'll find out.
From what I read in Florida, if the currency is legal tender, there is not tax. But if it not legal tender (e.g. Confederate currency) it is taxed.
2ndCharter, I agree with you 100%. I’ve been enjoying reading and learning from your knowledgeable posts here for years. I hope you will consider to post in the other forum too.
MR168, I very much appreciate your nice comments. Not to sidetrack this thread, but I have thought very seriously about joining the other forum however, most of the posters seem primarily concerned with small-size notes and Registry Sets which are not my cup of tea. Also, whenever someone posts a very serious (and expensive) note over there, the Social Justice Warriors chime in with comments about "must be nice to have money" so, no thanks.
Member ANA, SPMC, SCNA, FUN, CONECA
I really enjoy the Heritage Auction- the software is pretty good IMO.
I purchased 5 notes during the last auction. I live in Illinois and there was no sales tax on the invoice. The 19% sellers premium is an item to keep in mind when deciding your max bids. They are up front on this charge and you will see the bid PLUS premium displayed prominently.
As for shipping- if you purchase more than ONE item, they combine shipping which can save a LOT of postage charge. For the 5 items that I purchased, all paper currency, the total of shipping was like $21 which I did not feel excessive. Shipping varies by value of item being shipped and for paper currency that varies. One item might be $20 or more- but combined shipping saves big.
The lead up to the actual auction itself is a little tedious- place bids, wait days, and if you are the high bid when LIVE bidding starts, your INTERNET bid is the one to beat when it goes live. LIVE bidding is a whirlwind of activity that is fast paced and no pauses in the action! Be prepared to bid when the item you are interested in comes up because you will have to be ready! If no bids are placed, the fair warning (5 seconds) is given and if no additional bids are placed- the lot is closed.
Very rare or high dollar items can result in quite the competition! Other, equally "nice" items for new or mid grade collectors can be had at bargain prices. I enjoy it, and the opportunity to land an item at far less that value does exist.
I recommend it. Based on my own experience to date.
Oh boy, when will it ever end !!!
Oh boy, when will it ever end !!!
So, don't bid, less competition for me.
Member ANA, SPMC, SCNA, FUN, CONECA
for the time being its not going to get better on things like that. jmo
And the Heritage website goes down for the better part of a week...your dollars at work providing an improved experience for an improved, higher price
And the Heritage website goes down for the better part of a week...your dollars at work providing an improved experience for an improved, higher price
So, don't bid - less competition for me.
Member ANA, SPMC, SCNA, FUN, CONECA
Ah yes, the Hunt for Taxes continues worldwide.
Not sure sellers have figured out just how bad they got shafted by the new tax laws. Since bidders consider the all-in price (BP & now Tax) those bidders who live in tax happy states (most) will naturally reduce their hammers, which means the sellers are actually taking the tax hit because of lower net prices. In addition, general bidding activity and therefore liquidity will decline as well. Of course, those in no-tax states (if they're bidding) will have an advantage.
The problem continues when we wish to sell. If the dollar continues to decline -- not a bad bet -- we will likely pay massive cap gains taxes on our gold/silver/numismatic inflation hedges if you hold long enough, thereby making the entire exercise somewhat questionable. Yet, what other solution is there?
We also love our history and our coins....and we'll do the best we can under the circumstances. I would anticipate more activity in private coin clubs, coin shows and boards like this. But it sure is sad -- not to mention dangerous -- when governments make financial war on their own people.
P.S. A big shout out to Great Collections. Can't beat the service or the 10% discounted BP. I've met the founder Ian and both Todd and Andy who work on consignments. All wonderful people.
No Illinois Governor's Election in 2020. Not until 2022. State Constitution was intentionally rewritten so the Presidential Race and the Gubernatorial Race did not occur at the same time. Supposed to make voters think more clearly about the Statewide Officials. Sales tax in IL not charged on Gold and Silver and Platinum purchases, other things like copper, bronze, non-legal tender banknotes probably should be charged, to be accurate. The precious metals exception exists because precious metals exchange contracts in Chicago aren't sales taxed, but traders can always request delivery, at least in theory. Coin dealers got themselves in underneath the wire because Chicago Board of Exchange people got incredibly hissy, threatening to leave the State.
P.S. A big shout out to Great Collections. Can't beat the service or the 10% discounted BP. I
Sorry, but their offerings of good Nationals has been pretty sparse. I'll stick with Heritage
Member ANA, SPMC, SCNA, FUN, CONECA
The post I had was from 2018 when we had a governor's race. Now, in regards to the sales tax exemption on coins, it has been around since 1985 as I searched in the Illinois Department of Revenue page. The only coins not exempt under the law are those from South Africa due to the Apartheid regime at the time. I am a governor of the Illinois Numismatic Association and we are a watchdog for both collectors and dealers regarding, among other things, sales tax issues in Illinois as one of the biggest coins markets in the Midwest is in the Chicago area and that is, as everyone knows, is where over half of the dealers in the state are. If you live in Illinois, and especially in my region, there is this deep hatred for the leadership currently in charge since they are shoving their agenda down our throats. I will not go into political details only that unless you live outside the Chicago area nobody has a clue. Enough said.
for common stuff, sellers losers with new taxes
I can understand sales tax and have no issue with it, but I believe I have had my last dealings with HA. I think it is sad that they charge sales tax with the buyers premium (20%) included. If I purchase an item for $100, I should pay taxes on that amount only, not the $120 total after HA gets paid. Just my opinion.