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bluegrasscoach
Feb-21-2005, 3:38pm
I bought a mandolin recently that was on consignment and paid tax on it. The more I have thought about it, the more unsure I am about this procedure. Can something that has been taxed as a new instrument be taxed again as a consignment sale? It seems to me that I am paying a private owner sales tax. I mean even if I had to pay tax, wouldn't I only pay the store tax on their % of the consignment purchase? I am fine with paying sales tax if that is the procedure, I would just like to know for certain. Thanks in advance.

futrconslr
Feb-21-2005, 3:57pm
Of course it will depend on where you live but because you bought this in a store with what I assume is a physical address, even if its consignment, you will still have to pay sales tax. #The tax is on the price of the instrument not the percentage the dealer is making off the instrument. #Why? #Hell, I dont know....its just the way it is! #:-) #The town/city/county has to make money some way.

After re-reading your post, it was not clear if you bought this at a store or not.

bluegrasscoach
Feb-21-2005, 3:58pm
I figured as much. It does stink, though.

futrconslr
Feb-21-2005, 4:00pm
The tax man has ALWAYS got his fingers in your pocket someway.

Charlie Derrington
Feb-21-2005, 4:29pm
It doesn't matter if an instrument has been sold hundreds of times, (depending on if your state has sales tax), the tax has to be paid. Period. It's a sales tax, not a new instrument tax.

Charlie

El Rey del Mando
Feb-21-2005, 4:34pm
When you go to an antique shop,you pay tax every time.Can you imagine how many times some of thoes items changed hands.

John

bluegrasscoach
Feb-21-2005, 4:56pm
Dad burn revenuers...

futrconslr
Feb-21-2005, 4:59pm
[QUOTE]the tax has to be paid. Period

Unless you (as a seller) are not a business or you (as a buyer) are a business buying for resale.

mrbook
Feb-23-2005, 1:15am
In many states, like mine (NY), if you buy something (like a mandolin) from a private individual you are required to voluntarily send use tax (the equivalent of the sales tax) to the state. According to a tax seminar I attended once, if I go to another state and buy a pair of pants I owe the state use tax on the item. Just reporting what the tax man told me.

BlueMt.
Feb-23-2005, 11:16am
If you drive a car, I’ll tax the street,
If you try to sit, I’ll tax your seat,
If you get too cold, I’ll tax the heat,
If you take a walk, I’ll tax your feet.
Taxman! #http://www.mandolincafe.net/iB_html/non-cgi/emoticons/tounge.gif

GeoMandoAlex
Feb-23-2005, 12:09pm
A little off topic, but in the late 1990's, PA made a tax where if you give your child a car you've owned for ten years (you downright own the vehicle). You, or the child, has to pay the tax on the value of the car if the child transfers the title into his/her name. This is not a title transfer fee. Supposedly it was to sto used car salemen from selling the car at one price and reporting it to the taxman at a different, lesser price.

Big Joe
Feb-23-2005, 12:30pm
In many states all sales are to be taxed no matter how many times the item has been sold or owned. In other words, if you buy the instrument new and pay tax on it and then you decide to sell it. In most states you are supposed to collect and turn in the appropriate sales tax on that sale. Just because you are an individual does not relieve you of your tax liability. In many states you can purchase an item and have it shipped out of state and avoid the sales tax on the item. For example, if you buy a new mandolin in Tennessee and live out of state and we ship it to you, you would not be required to pay Tennessee sales tax. However, you may be required to pay the sales tax in the state you live. You are supposed to contact the department of revenue in your state and tell them you've made the purchase and want to pay your sales tax. In most cases the revenue agent will likely pass out and start muttering and stutterint, but that is the way it is supposed to work. I personally don't know anyone who has actually done that, but in many states that is the law. In tennesee we can ship out of state and there is not Tennessee tax, but no matter where you live, if you take it with you it is taxed. No exceptions. Just thought this might be interesting info.

Darryl Wolfe
Feb-23-2005, 1:11pm
With respect to the original question...the sale is for the whole amount of the mandolin...the commission and consignment amount are relative to Federal Income taxes, not sales taxes. #However, in many states if you trade in an instrument.or trade in a car at the used car dealer...then the sale amount (for sales tax purposes) is based on the difference in value.

Lee
Feb-23-2005, 3:03pm
PA now taxes private car sales. We get around it buy declaring the value of the car really low because it needs work.
And if you have more than one yard sale a year, those profits are supposedly taxable too.
Why do the call it a "sales tax" anyway if it's the buyer who's paying it? Should be called a "buy tax".
But there's no sales tax on common stock, I wonder why??

PaulD
Feb-23-2005, 3:49pm
In tennesee we can ship out of state and there is not Tennessee tax, but no matter where you live, if you take it with you it is taxed.

I don't know if this is true elsewhere, but in Utah taxes are required to be collected if the business has a retail presence in the state. For example, if I found a great mail-order deal on an F-9 at a Guitar Center in Tennessee, the Tennessee GC would be required to collect sales tax because there are retail GC stores in Utah. If, on the other hand, I were to buy mail order from Mandolin Brothers they would not be responsible for collecting sales taxes for Utah (unless there is something different in their state law). I would technically be responsible for paying the sales taxes if they were not collected by the seller, as Joe points out, but what they don't know... http://www.mandolincafe.net/iB_html/non-cgi/emoticons/wink.gif

There are probably umpteen-zillion exceptions and nuances to this tax code that I'm not aware of, but this is generally how it works behind the Zion Curtain. The rest of what has been stated applies: sales tax is calculated on the sales price, private sellers are required to report sales and pay taxes. I think if I barter a mando for a trained chimp I'm expected to pay tax on the fair market value, but I'm not sure if the recipient of the mando pays, or the chimp, or both.

Be grateful you don't get all the government you pay for! http://www.mandolincafe.net/iB_html/non-cgi/emoticons/smile.gif

Paul Doubek

Rick Crenshaw
Feb-23-2005, 11:10pm
"Everybody's got to pay taxes! Even business men, who lie and steal and cheat, have to pay taxes!"
- Jonathan Winters character in "It's a Mad, Mad, Mad World"

mike_c
Feb-28-2005, 1:24am
we still don't have no stinkin sales tax here in montana--

El Rey del Mando
Feb-28-2005, 8:29am
That almost sounds like a complaint Mike.(o: They probably get you somewhere else,I'll bet....

John