13% tax on sports memorabilia in Minnesota due to new tax bill

[Slette]

I already run to Wisconsin I get beer on Sundays, may as well do it the other days of the week too

 

[byronscott4ever]

Based on what I heard last night, it sounds like Governor Dayton isn't going to sign the bill as it stands.

 

[f2tornado]

I would think if you are buying to flip or resell, you would not have to pay tax if you have a resale certificate, like now, I have to pay tax in Florida except if I am buying for resale, then I am exempt, you just need a certificate to give to the seller, the end buyer would have to pay tax.
They would have to come out with a certificate for internet sales first..

From what I read in the Pioneer, this would be a 13% wholesale tax meaning the tax would be applied at the wholesale level (think B2B transactions). The dealer would be paying the 13% on top on the wholesale price and would then pass this cost down to the consumer. Those with a sales tax and use permit would be only exempt from the sales tax which would ultimately be charged to the consumer. I used to have one of those permits in Minnesota when card shows were still a viable enterprise. I don't know if there are any wholesale card distributors left in Minnesota and I am not sure of Commerce Clause ramifications for B2B transactions from places like Blowout or BBCE located out of state. This tax is proposed from the same arse clowns who just voted themselves a raise.

 

[Casebusters]

From what I read in the Pioneer, this would be a 13% wholesale tax meaning the tax would be applied at the wholesale level (think B2B transactions). The dealer would be paying the 13% on top on the wholesale price and would then pass this cost down to the consumer. Those with a sales tax and use permit would be only exempt from the sales tax which would ultimately be charged to the consumer. I used to have one of those permits in Minnesota when card shows were still a viable enterprise. I don't know if there are any wholesale card distributors left in Minnesota and I am not sure of Commerce Clause ramifications for B2B transactions from places like Blowout or BBCE located out of state. This tax is proposed from the same arse clowns who just voted themselves a raise.

So if an LCS buys a case of cards on B2B and sells it at their store, the customer would have to pay 13% internet tax plus their state sales tax (6% in Florida) ?

 

[f2tornado]

So if an LCS buys a case of cards on B2B and sells it at their store, the customer would have to pay 13% internet tax plus their state sales tax (6% in Florida) ?

The dealers in Minnesota would be paying this potential 13% tax. Based on the verbiage "wholesale tax", average Joe pack ripper or card show shopper would not pay it directly (not itemized on a receipt) but you know darn well the dealers will be passing that 13% down the the consumer by raising the price of the packs. They are not gonna eat that kind of money. Of course, the customer will continue paying the state sales tax in addition to the higher priced packs. The unknown for me is if this 13% rate would apply to interstate transactions; say, if the "Beyond Shinders" shops in the MSP area were to buy a case of cards for resale from Blowout, Atlanta, BBCE, etc located out of state. My guess is the state would indeed want to impose the wholesale tax on this type of transaction and I think it would pass commerce clause muster but I'm no legal scholar. If this passes, it's quite possible your $2.99 pack of retail at a Minnesota Target store would go up to $3.39. Who would have thought sports cards would ever fall into "sin tax" territory?!

 

[f2tornado]

FedEx truck just dropped this off today. It has Minnesota Governor Mark Dayton's name on the bat knob.

 

[uniquebaseballcards]

I know nothing about Dayton but that was funny.