Heritage Auctions: Retroactive Sales Tax Charge
MikeD
Posts: 30 ✭✭✭
Did anyone else receive an email from Heritage about owing NYS tax from auctions in 2024? I received 6 invoices for auctions back in 2024 saying I owe more in sales tax for NYS. They provide no detail on the error, just say I owe thousands extra for purchases over a year ago. I have other auctions I won in 2024 that weren't included, so do I have another bill coming?
I called and the invoices are legitimate in my HA account so its not a scam. It is absurd.
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Each state has specific rules dealing with circumstances where it charges a business sales tax. If a business has an office or people working there, state sales tax applies. If not, each state as a sales volume threshold over which a business must get a sales tax permit and charge sales tax on sales of (usually only tangible) property. I guarantee you that Heritage has sales exceeding such volume in New York.
The only question I have pertains to possible exemptions for numismatic items. Some states don't charge sales tax on coin sales. Others, like CA do not charge sales tax if the sales amount on a single transaction exceeds $2,000. I would contact Heritage and ask them what is the New York law on this. They would know.
"Seu cabra da peste,
"Sou Mangueira......."
In the future have a dealer that is out of state bid for you.
To clarify, they charged me sales tax in my invoices back in 2024. They are saying today they charged me the wrong amount without detail and I owe more than I had paid in 2024.
So Heritage screwed up their calculation in 2024 and are coming after me for the difference now, again without detail and since they overwrote their invoices in the system, I cannot verify the change.
I assume I am not the only one hit? And what are the chances they come back for taxes missed in 2023 or earlier?
This isn't about avoiding sales tax. It's about being charged retroactively for taxes that Heritage miscalculated over a year ago after paying some tax, but apparently not enough.
Perhaps Heritage missed the local sales tax that normally is added to the base rate NY State sales tax (4 %) ? Add another 5% or so on top of that if you live in NYC.....The total tax varies based on your zip code in NY state.
Commems and Early Type
Should be easy enough to calculate the percentage on the total, including shipping, and compare it to you local rate.
I presume NY went after HA for the difference and HA came to you.
I also presume that the issue you have is not whether you owe the tax but whether HA should eat the loss because it was their error.
All comments reflect the opinion of the author, even when irrefutably accurate.
That's exactly my issue. If Amazon sent me an email and said I owed more on the TV I bought 5 years ago because they miscalculated my tax, I'd be equally as annoyed. Its terrible business, especially since they just sent the invoices in an email like it was nothing. I could have also missed it, the email had a subject like the header I used for this thread and sounds like its a notice updating me on how they handle their taxes. I don't like surprise tax bills from over a year ago. I also don't know what they originally charged me, the updated invoices show no details of the change.
Did anyone else receive a similar email and invoices? I assume I am not alone.
terrible way to account for this. i hope their inside "paper trails" are better than this
your thread might be viewed more if you had a more descriptive subject line ;-D perhaps retroactively charging NY sales tax (eliminate auctions)
Tell Heritage you already paid your Use Tax on said coins, so no additional sales tax is due.
Besides, it’s their responsibility, not yours. They are just hoping to collect from you.
i can see how they'd want you to pay since it's the government expecting a purchaser to pay all sales tax (like at the register)
but they need to find a way to eat this. auction credits?
I received similar. I live NYC.
Casual collector: Morgans & Peace Dollars & 20th Century Type Set. Successful BST transactions with ProofCollection, Morgan13, CoinFinder, CoinHunter4, Bretsan.
Massachusetts is exempt for purchases $1000 or more in a single transaction.
I think it is unfortunate but I dont see a way out unless you want to sever ties with them. That would also be unfortunate.
As far as fairness goes I have no opinion.
Student of numismatics and collector of Morgan dollars
Successful BST transactions with: Namvet Justindan Mattniss RWW olah_in_MA
Dantheman984 Toyz4geo SurfinxHI greencopper RWW bigjpst bretsan MWallace logger7
Better still, get a mailbox at The UPS Store in Pennsylvania and have HA ship there.
You would probably have to change your address on your payment method also
All comments reflect the opinion of the author, even when irrefutably accurate.