Reverb + Taxes + New York

Andromeda · #1 10-26-2020, 08:45 PM

Sorry if this is not the right forum to ask this so please move if necessary.

I’m purchasing my first guitar off Reverb later this week and I’m wonder what tax rate for New York Reverb charges....I’m trying to calculate the exact amount. Thanks!

AMW · #2 10-26-2020, 08:47 PM

Contact Reverb with a link to the listing, they'll get back to you with the exact amount. They are very smart about tax collection.

If the instrument is from an actual dealer/shop, waste no time in calling them directly. You probably won't have to pay any tax at all if it is in another state.

Andromeda · #3 10-26-2020, 08:51 PM

Thanks for the information. The seller is in Florida and I’m in New York so I may not have to pay taxes on this?

pagedr · #4 10-26-2020, 08:59 PM

If you buy off Reverb you will have to pay sales tax as long as your state requires it, and I'm pretty sure every state requires it now. It should just be your standard state sales tax, which for New York appears to be 4%. You can also just add the guitar to your cart (this will not require you to buy it) and proceed to the checkout page where it'll give you a breakdown of the cost of the guitar + shipping + sales tax.

Andromeda · #5 10-26-2020, 09:08 PM

Quote:

Originally Posted by pagedr

If you buy off Reverb you will have to pay sales tax as long as your state requires it, and I'm pretty sure every state requires it now. It should just be your standard state sales tax, which for New York appears to be 4%. You can also just add the guitar to your cart (this will not require you to buy it) and proceed to the checkout page where it'll give you a breakdown of the cost of the guitar + shipping + sales tax.

On EBay they charge 7.5% tax rate.

I’ll try the checkout to see how much tax they charge...even though after contacting the seller I’ll be putting in an acceptable offer that is less than the asking price. But I should be able to figure the tax rate. Thanks!

letterk · #6 10-26-2020, 09:16 PM

They charge whatever your state requires. You can see the exact amount in the shopping cart.

Andromeda · #7 10-26-2020, 09:31 PM

Quote:

Originally Posted by letterk

They charge whatever your state requires. You can see the exact amount in the shopping cart.

I did go as far as the check out and the tax was $50.33 or about 8.8%. eBay charges me 7.5%. no big deal.

TBman · #8 10-26-2020, 09:40 PM

Quote:

Originally Posted by Andromeda

Thanks for the information. The seller is in Florida and I’m in New York so I may not have to pay taxes on this?

Sales tax stinks.

That said,

it used to be if a seller had nexus in a state where the customer lives then the seller had to collect sales tax. If the seller did not have nexus then no sales tax. Nexus is when the seller has a physical presence in the customer's state i.e. showroom, warehouse. Plus the seller had be a merchant. Times are changing I guess.

Now I've read here that Reverb collects sales tax on every sale

Don't quote me though I could be wrong. I would just figure in the sales tax to the price and if you get charged for sales tax it won't be a big surprise.

sdelsolray · #9 10-26-2020, 10:10 PM

Quote:

Originally Posted by pagedr

If you buy off Reverb you will have to pay sales tax as long as your state requires it, and I'm pretty sure every state requires it now.
...

Five States do not charge sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon.

The Bard Rocks · #10 10-27-2020, 05:44 AM

Quote:

Originally Posted by pagedr

If you buy off Reverb you will have to pay sales tax as long as your state requires it, and I'm pretty sure every state requires it now. It should just be your standard state sales tax, which for New York appears to be 4%. You can also just add the guitar to your cart (this will not require you to buy it) and proceed to the checkout page where it'll give you a breakdown of the cost of the guitar + shipping + sales tax.

Sorry that's the part of the tax that the State gets. The county also gets a share. Most counties are 8% (total), but if you are in NYC it could be maybe as much as 10%.

UncleJesse · #11 10-27-2020, 06:09 AM

Some reverb sellers have started creating "reverb shops" which allow them to not charge sales tax. I do not know what other ramifications there are for buying from a "reverb shop" as opposed to reverb itself.

buddyhu · #12 10-27-2020, 06:13 AM

Quote:

Originally Posted by AMW

Contact Reverb with a link to the listing, they'll get back to you with the exact amount. They are very smart about tax collection.

If the instrument is from an actual dealer/shop, waste no time in calling them directly. You probably won't have to pay any tax at all if it is in another state.

This is good advice. If you contact an independent, out of state seller directly, they are not obliged to charge sales tax on purchases from a buyer in another state. If you contact a chain store that has an outlet in your state, they will probably charge sales tax. And Reverb now collects sales tax on all sales (as if Reverb was a kind of a chain store operation).

Some out of state sellers have a meaningful web presence (or longstanding reputation) that is not related to Reverb, and therefore are comfortable selling guitars without going through Reverb (even though the guitar might be listed on Reverb).

mherrcat · #13 10-27-2020, 11:45 AM

If you live in Manhattan, the current sales tax rate is 8 7/8%. Includes state and local taxes.

https://www.tax.ny.gov/pdf/publicati...les/pub718.pdf

Quote:

If you contact an independent, out of state seller directly, they are not obliged to charge sales tax on purchases from a buyer in another state.

This is an oversimplification. It depends on several things; Sales Tax Nexus (physical), Economic Nexus, Origin-based Method, Destination-based Method, etc.