Illinois is Collecting Special Event Sales Tax at National
70ToppsFanatic
Posts: 2,106 ✭✭✭✭
Got the exhibitor packet for National today and in the cover letter it said
all exhibitors will need to collect Special Event sales tax. Looks like either
9.25% or 9.5% as best I can tell.
Non-Illinois residents are not exempt as best I can tell from their website
info.
Anyone have any additional info on this situation? Do non-Illinois exhibitors
have any way around this?
all exhibitors will need to collect Special Event sales tax. Looks like either
9.25% or 9.5% as best I can tell.
Non-Illinois residents are not exempt as best I can tell from their website
info.
Anyone have any additional info on this situation? Do non-Illinois exhibitors
have any way around this?
Dave
0
Comments
Pamphlet for sales tax (page 6) could say all items are for farming or interstate commerce.
Pamphlet on tax
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<< <i>The margin of profit and loss is within that percentage for a lot of sellers. It's why shows have always been and will continue to be a cash business. >>
Many people now use PayPal and/or handheld credit card readers, so the audit trails will sometimes exist.
Looks like IL is hoping to narrow their deficit any way they can.
Dave
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Nick
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<< <i>Maybe this will help convince the promoters to pick other cities for the National in the future.
Nick >>
You are right as I dont see this as a good thing for the National coming back to Chicago as often as it has. I know the current schedule is set but I am sure those who vote where the show will be will need to think twice about this new Illinois tax issue.
<< <i>Maybe this will help convince the promoters to pick other cities for the National in the future.
Nick >>
May I add that the promoters need to let the powers-that-be know that the sales tax issue is one of the main reasons why they won't return to Illinois.
I'm curious as to whether this enforcement policy will change the attendance plans of any dealers.
Even Dealer-to-Dealer sales would be subject to sales tax unless the purchaser provides the seller a valid resale certificate. I'm not sure what their enforcement/audit plan may be. Have the promoters provided any guidance to the dealers regarding registering with IDR/record keeping requirements/etc?
This is known as “bad luck.”
In a nutshell, report some sales, send some tax money. Everyone will be happy.
From a practical standpoint there is nearly zero chance of anyone tracking all cash sales at the National.
Follow your conscience.
If one's margins are as tight as 9.5% then perhaps another way of scraping together cash is in order.
Collect the tax and remit it. It is the right and legal thing to do.
If one's margins are as tight as 9.5% then perhaps another way of scraping together cash is in order.
In some businesses, 9.5% is a healthy margin.
<< <i>If one's margins are as tight as 9.5% then perhaps another way of scraping together cash is in order.
In some businesses, 9.5% is a healthy margin. >>
Nevertheless, record all transactions, collect the tax, and remit it.
"a nonresident" you must file Form IL-1040 and Schedule NR if
you earned enough taxable income from Illinois sources to have a tax liability (i.e., your Illinois base income from Schedule NR, Step 5, Line 46, is greater than your Illinois exemption allowance on Schedule NR, Step 5, Line 50)
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Agree with Nick, maybe this will push them to have the National in other places instead of just the venues that the promoters make the most money from, like Cleveland and Atlantic City
Always looking for Topps Salesman Samples, pre '51 unopened packs, E90-2, E91a, N690 Kalamazoo Bats, and T204 Square Frame Ramly's
<< <i>Another legal way around sales tax is to "ship" the item to the customer..thus qualifying for interstate commerce which currently is exempt in every state. >>
Not likely that people who go to National want to wait for their cards to be shipped. Admittedly, you can ship a box to someone after the
show and prove you sent something to them and the IL Dept of Taxation will have a tough time proving what was in the box.
Other alternatives?
- Pre-sell before you arrive in IL so that people are only picking up what they already purchased?
- Collect payment away from the show floor, again making it just a pickup of something that was purchased elsewhere?
- Collect payment through the Internet?
Dave
WTB: PSA 1 - PSA 3 Centered, High Eye Appeal 1950's Mantle
This is a long time coming, surprised it took this long. I"m also surprised auction houses aren't required to 1099 consignors.
Always looking for Topps Salesman Samples, pre '51 unopened packs, E90-2, E91a, N690 Kalamazoo Bats, and T204 Square Frame Ramly's
<< <i>How will this effect someone buying at the show? >>
X + 9.25%
It's actually the regular Chicago tax that you would pay if you bought a blaster box at Wal Mart so not as big a deal as I thought.
Also, saw this...
Sales for resale The sale for resale exemption applies to sales made to businesses that purchase items tax free to resell. The tax, and if applicable, surcharge are collected and paid when the items and prepaid wireless services are sold at retail. To document the exemption, you must keep in your books and records a certificate of resale containing the seller’s name and address, the purchaser’s name and address, an identification or description of the items purchased for resale, a statement from the purchaser that the items are being purchased for resale, the purchaser’s signature and the date of signing, and one of the following: — the purchaser’s active account ID or resale number issued by the department, — a statement that the purchaser is an out-of-state purchaser who will always sell (and deliver) to his or her customers outside Illinois. Purchasers may either document their tax-exempt purchases by completing Form CRT-61, Certificate of Resale, or by making their own certificate. A copy of the certificate must be provided to the retailer.
I did find a loophole, when buying wax explain that you are buying the gum for food and pow.... 2.25%!
if a dealer is going to want $109.25 for a $100 transaction, that is going to squash a deal
WTB: PSA 1 - PSA 3 Centered, High Eye Appeal 1950's Mantle
<< <i>I"m also surprised auction houses aren't required to 1099 consignors. >>
I was thinking about this as well recently and am quite surprised. I'm sure it will catch up to us at some point.
Justin
Retired - Eddie Mathews Master Registry Set (96.36%) Rank 1
It happens at every National regardless of location. A dealer has to get a temporary tax cert in Ohio. In Illinois and Maryland you fill out a form provided to the dealer that is mailed in after the show.
<< <i>
<< <i>Another legal way around sales tax is to "ship" the item to the customer..thus qualifying for interstate commerce which currently is exempt in every state. >>
Not likely that people who go to National want to wait for their cards to be shipped. Admittedly, you can ship a box to someone after the
show and prove you sent something to them and the IL Dept of Taxation will have a tough time proving what was in the box.
Other alternatives?
- Pre-sell before you arrive in IL so that people are only picking up what they already purchased?
- Collect payment away from the show floor, again making it just a pickup of something that was purchased elsewhere?
- Collect payment through the Internet? >>
Or you could lead an honest life and sleep well at night. Just a thought.
<< <i>Or you could lead an honest life and sleep well at night. Just a thought. >>
Deep thoughts by Maurice Handey
First of all, from the original post, this is not a new implement by Chicago, or Illinois, or by the location, or by the National. This is the law. In every state, every city and every county. This is not something new that is being implemented this year. My company has done this every year, for every National(or show) I have done. In fact, its not just for the National. It's for every and any show you set up at. I currently have a tax ID number in Ohio (National), Maryland (National), Illinois (I'm based here anyway), PA (The Hunt show I used to do), New Jersey (National), California (National) and probably some I am forgetting at the moment. It has nothing to do with doing it as a hobby or business. It doesn't matter if you make money or lose money. This is about sales tax. It doesn't matter if your selling baseball cards, hot dogs, widgets, guns and/or roses. It doesn't matter if you are doing the National, or setting up a table in the trunk of your car at the local flea market. If you sell anything, in any state, at any time, you are to collect and pay sales tax to that state (and sometimes city and or/county tax). This is just the tax law.
Second, there will probably never be a show where you ask the customer to pay $109.25 on an item that you have marked at $100.00. What really happens is that you pay me the $100.00 and I get only $90.75 for the item. The other $9.25 goes to the state of Illinois (or the state you are selling in at the time). This is what sometimes makes it difficult when you have an item for $100.00 and the person asks if you will take $80.00. If I am able to accept the $80.00, I am really getting 9.25% less on that, after I send Illinois the sales tax money.
In addition, this does lead to an unfair advantage for dealers who skirt the law. They have a clear advantage on margins by not paying the sales tax. However, Maurice said it best above. I like to sleep at night. I have been audited before and come out perfectly clean every time. The time I spent during the audits were not enjoyable. I also get e-mails from people through eBay telling me that "I don't pay sales tax on cards" (because they live in Illinois). I respond that I don't know what to tell you, but its the law. If you can go to Target and bring me a receipt that shows they bought a blaster box and Target DID NOT charge them sales tax, I will pay for the box for them. Still have yet to have someone take me up on it. Of course, if they have a TAX ID number, then they are tax exempt, but that is a different story for another day.
Finally, I have never been to a show where the state came in and demanded to see sales receipts on the spot. I HAVE been at shows where the state has walked in and asked to see a copy of the temporary sales tax ID you are supposed to have on hand. For those that didn't have it, they were forced to purchase one on the spot and possibly face a fine for not having it. Also, I probably wouldn't want to be the guy who had to purchase the one on the spot, as you might also be the one asked to see some more detail down the road.
Hope this helps both sides on the coming show this summer! Steve
Thank you for taking the time out of your buy schedule to break it down for us.
it is greatly appreciated
WTB: PSA 1 - PSA 3 Centered, High Eye Appeal 1950's Mantle
At least in CA, it's sales and USE tax. That means if you use it in the state you have to pay tax on it, regardless if where it was bought. Lots of my friends have gotten nailed that way-had a property loss in their business ( in the cases I'm talking about they were photographers and had equipment stolen) and bought replacements tax free via mail order. The state references the insurance payout, audits, and find use tax wasn't paid. Penalties and interest often double it.
I haven't seen this happen with card inventory, but in my business I have to pay annual property tax on my equipment as well. Even a lens I bought in '82 gets taxed every year, just like my house does.
The price we pay for living in paradise I guess.
Always looking for Topps Salesman Samples, pre '51 unopened packs, E90-2, E91a, N690 Kalamazoo Bats, and T204 Square Frame Ramly's
<< <i>I am confused on this issue and maybe someone can clarify this for me. If I sell a used TV (that already had sales tax paid when I purchased it new), I need to collect sales tax on the TV. And if the person I sell it to eventually sells it, then he/she needs to collect sales tax as well? So, every time this TV sells, sales tax needs to be collected? I thought sales tax from the original new purchase was enough to suffice? >>
Bobby,
As long as you are not in the business of selling (TVs and other tangible items) then in Alabama this sale could qualify for a casual sale and thus exempt from sales/use tax..ie garage sale exemption...However, just because you paid tax when you bought the item does not exempt it from tax in the future. Actually the item is not being taxed but the act of "selling" is being taxed. Thus second hand stores are required to charge tax and used car dealerships charge sales tax.
"Molon Labe"
<< <i>Fascinating topic. I often wonder how in the world we let our politicians get away with creating taxes like "use tax". What could possibly have been their justification? >>
finding a way to pay for roads, police, schools and soldiers?
Always looking for Topps Salesman Samples, pre '51 unopened packs, E90-2, E91a, N690 Kalamazoo Bats, and T204 Square Frame Ramly's
<< <i>
<< <i>Fascinating topic. I often wonder how in the world we let our politicians get away with creating taxes like "use tax". What could possibly have been their justification? >>
finding a way to pay for roads, police, schools and soldiers? >>
Dont forget about Paying THEMSELVES (their 1st priority)
Sounds like there are few (if any) legal recourses for "out of state", casual exhibitors to avoid having to collect
the Special Events Sales tax.
Dave
In California, use tax is a big deal. You're supposed to report any purchases where no sales tax was collected and remit use tax for bringing it into the state. The Board of Equalization is busy conducting audits of businesses, looking for purchases of equipment and supplies where the taxpayer did not pay sales tax so that they can assess the tax.
When I did shows back in the early 90s, we had to display our Texas Tax ID slip/certificate and paid all yearly taxes in one bill (think before 12/31). It also exempted us from paying a sales tax on related purchases (ie boxes/cases) at Sam's Club since they were for resale.
"In California, use tax is a big deal. You're supposed to report any purchases where no sales tax was collected and remit use tax for bringing it into the state. The Board of Equalization is busy conducting audits of businesses, looking for purchases of equipment and supplies where the taxpayer did not pay sales tax so that they can assess the tax."
I keep a log of every sale and have resale cards to fill out.
I've been audited twice by the state board of equalization, they make the IRS look kind and gentle.
Always looking for Topps Salesman Samples, pre '51 unopened packs, E90-2, E91a, N690 Kalamazoo Bats, and T204 Square Frame Ramly's
<< <i>I suspect that most dealers will just adjust the asking price for all of their inventory. Does suck though! >>
Or they'll just add it to the total, similar to buying in a retail card shop. When I did shows, we had to have a seller's permit in order to get a table. Just think of it as replacing the cost of shipping with the cost of the tax.
Accounts Receivable Tax
Building Permit Tax
Capital Gains Tax
CDL License Tax
Cigarette Tax
Corporate Income Tax
Court Fines (indirect taxes)
Dog License Tax
Federal Income Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel Permit Tax
Gasoline Tax (42 cents per gallon)
Hunting License Tax
Inheritance Tax
Interest Expense (tax on the money)
Inventory Tax I
RS Interest Charges (tax on top of tax)
IRS Penalties (tax on top of tax)
Liquor Tax
Local Income Tax
Luxury Taxes
Marriage License Tax
Medicare Tax
Property Tax
Real Estate Tax
Recreational Vehicle Tax
Road Toll Booth Taxes
Road Usage Taxes (truckers)
Sales Taxes
School Tax
Septic Permit Tax
Service Charge Taxes
Social Security Tax
State Income Tax
State Unemployment Tax (SUTA)
Telephone Federal Excise Tax
Telephone Federal, State and Local Surcharge Taxes
Telephone Federal Universal Service Fee Tax
Telephone Minimum Usage Surcharge Tax
Telephone Recurring and Nonrecurring Charges Tax
Telephone State and Local Tax
Telephone Usage Charge Tax
Toll Bridge Taxes Toll
Tunnel Taxes
Trailer Registration
Tax Utility Taxes
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft Registration Tax
Well Permit Tax
Workers’ Compensation Tax
"Molon Labe"
Always looking for Topps Salesman Samples, pre '51 unopened packs, E90-2, E91a, N690 Kalamazoo Bats, and T204 Square Frame Ramly's
<< <i>Well I was thinking that these might be enough to pay for quite a bit:
Accounts Receivable Tax
Building Permit Tax
Capital Gains Tax
CDL License Tax
Cigarette Tax
Corporate Income Tax
Court Fines (indirect taxes)
Dog License Tax
Federal Income Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel Permit Tax
Gasoline Tax (42 cents per gallon)
Hunting License Tax
Inheritance Tax
Interest Expense (tax on the money)
Inventory Tax I
RS Interest Charges (tax on top of tax)
IRS Penalties (tax on top of tax)
Liquor Tax
Local Income Tax
Luxury Taxes
Marriage License Tax
Medicare Tax
Property Tax
Real Estate Tax
Recreational Vehicle Tax
Road Toll Booth Taxes
Road Usage Taxes (truckers)
Sales Taxes
School Tax
Septic Permit Tax
Service Charge Taxes
Social Security Tax
State Income Tax
State Unemployment Tax (SUTA)
Telephone Federal Excise Tax
Telephone Federal, State and Local Surcharge Taxes
Telephone Federal Universal Service Fee Tax
Telephone Minimum Usage Surcharge Tax
Telephone Recurring and Nonrecurring Charges Tax
Telephone State and Local Tax
Telephone Usage Charge Tax
Toll Bridge Taxes Toll
Tunnel Taxes
Trailer Registration
Tax Utility Taxes
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft Registration Tax
Well Permit Tax
Workers’ Compensation Tax >>
Kudo's to you for compiling that list, even IF I want to vomit when I read it