Tax on Reverb

Discussion in 'Sidewinders Bar & Grille' started by OttoG, Jul 9, 2021.

  1. OttoG

    OttoG Strat-O-Master Silver Member

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    Hello Gentlemen,

    First I apologize if this thread is not supposed to be here. I just landed a nice deal with a dude on Reverb for a Fuzz pedal, however going thru checkout, I see now almost 25 bucks of taxes?!

    This is the first time Ive seen this, last month I got myself a Broadcast pedal, and in any of my orders from this year have I seen taxes. To give more detail, the pedal is shipped from Nevada to Florida, to my POBOX.

    Was there any changes on Reverb regarding taxes and used gear?
     
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  2. 33db

    33db Senior Stratmaster

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    Could have something to do with where you are located?

    https://duckduckgo.com/?q=high+taxes+on+reverb.com&t=operav&ia=web
     
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  3. lbpesq

    lbpesq Strat-O-Master

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    Reverb started collecting taxes for most states over the last year or two. Applies to both new and used, as sales tax applies to both new and used.

    Bill, tgo
     
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  4. OttoG

    OttoG Strat-O-Master Silver Member

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  5. StratoMutt

    StratoMutt Most Honored Senior Member

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  6. OttoG

    OttoG Strat-O-Master Silver Member

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    Cuak Cuak

    Dunno guys, seems weird, I mean, Ive never have taxes charged in my previous orders from them. Maybe someone will provide a light on this.
     
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  7. StratoMutt

    StratoMutt Most Honored Senior Member

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    If the shipments do not go outside of the US, Reverb will collect taxes for FL I'd imagine - the destination. They know nothing of your courier arrangement.
     
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  8. Namelyguitar

    Namelyguitar Most Honored Senior Member Silver Member

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    It's a state thing which should not reflect poorly on Reverb.

    It's compliance just like Amazon, Eddie Bauer, Best Buy, Staples, Wal-Mart, Bass Pro Shops, Guitar Center, Sweetwater, and guess how many other sellers.

    I used to live a few miles from a neighboring state. My friends/ neighbors over the line paid lower sales tax. ;) It's calculated based on the 'ship to' address.
     
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  9. Morf2540

    Morf2540 Senior Stratmaster

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    It’s your local sales tax. Those are required to be collected now for online purchases. It’s not just Reverb, I think it’s all online sales. I think it started last year,
     
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  10. vid1900

    vid1900 Most Honored Senior Member

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    Always choose a PO Box in Alaska, Delaware, Montana, New Hampshire, or Oregon.

    Those states do not charge sales taxes.
     
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  11. Roca81

    Roca81 Strat-Talker

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    A few years ago Oklahoma passed a law that you have to pay state taxes on all online orders. I don't think it is right but the government sucks sometimes.
     
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  12. cranky

    cranky Senior Stratmaster

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    Reverb has been charging taxes for all transactions for at least 4-5 years, I think, if not longer.

    I think it's absurd that hobbyists unloading their used gear are treated the same as actual businesses by making their used gear taxable. But I guess that's one of the ways they protect the big guys from the little guys.
     
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  13. Baelzebub

    Baelzebub Dr. Stratster

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    If you perhaps made your prior purchases through someone who had one of Reverb's "web storefronts" that people could set up, that was a way to avoid taxes.

    Reverb stopped that after Etsy took over forcing all sales through their portal where everything gets taxes. You wouldn't have necessarily noticed the difference since it was merely a technical tax avoidance setup.
     
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  14. PCollen

    PCollen Senior Stratmaster Silver Member

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    For Florida, effective July 1, the law went into effect Z(or rather began being enforced) that ALL internet sales to Florida add resses (billing and/or shippping) have Florida sales tax applied.

    https://www.sun-sentinel.com/busine...0210420-cjij55ttc5doznzescc2l7hjfy-story.html
     
  15. PCollen

    PCollen Senior Stratmaster Silver Member

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    Shipping to/from Alaska will KILL YOU. Even those music stores (MF, Sweetwater, etc. ) that offer free shipping exclude Alaska and Hawaii.
     
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  16. Morf2540

    Morf2540 Senior Stratmaster

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    I live in Delaware. No sales tax. Everyone is welcome to ship their online purchases to my house and save the tax. I'll take good care of it for you.
     
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  17. Rudedawg

    Rudedawg Senior Stratmaster

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    Sales tax has been collected on online sales to MS for a while now, whether shipped to our P.O. Box or physical address.
     
  18. OttoG

    OttoG Strat-O-Master Silver Member

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    Thank you! You got the answer. All of my previous orders were not subjected to tax. My last order before this fuzz went thru without any taxes.

    BTW, it just shipped today, an awesome Land Devices HP-2; got it for $320. Sweet.
     
  19. StratUp

    StratUp Senior Stratmaster

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    (This is a non-political post of sales tax law issues. Collection of sales taxes across state lines is common among states of all political leanings).


    Old Rules:

    Every state with a sales tax (which is most) also has a USE tax - so if you purchased out of state, you were supposed to send them the tax. Widely unenforceable except with business purchases (easily audited) or very large personal purchases that were easy to monitor dues to registration requirements (cars, boats, etc).

    OTOH, collections across state lines were not enforceable. The SCOTUS held that the Interstate Commerce Clause considered it a restriction of Interstate Commerce and it wasn't Constitutional. EX: The state of "X" could not force a business in in state "Y" to collect taxes for it and forward the money back to "X".

    Any business that had a presence in a state (nexus) could be forced to collect taxes for sales completed nationally. So, for example, if Amazon had a warehouse in a state, they could/would be forced to collect taxes for that state regardless of where the item was sold... as long as the item was delivered to that state.

    New rules:

    There was a SCOTUS ruling a few years ago via a case that South Dakota filed that brought down the long-standing "law" that one-state trying to enforce the sales tax collection was a violation of the Constitution's Interstate Commerce Clause.

    The result was that many states passed laws requiring the collection of sales taxes, as cited for Florida above. Generally small businesses are exempt from the collections as a matter of practicality. However, if the sale takes place through a large broker (Reverb, Ebay, etc) then the broker themselves is required to do the collection.

    Some of the new laws are gray in certain aspects, but the vendors have chosen to err on the side of collection when there's any question.