grannyring
But
if you buy a used amp from Joe aphile and bring it back you owe no tax.
Correct? Under Tennessee rules, it looks like he'd owe the Use Tax.
I cannot fathom any other answer based on
the realities involved with trying to collect such a tax and the fact
that nobody pays nor keeps track of these used transactions. Obviously some entity is monitoring the transactions, because the OP already received a Use Tax bill from the state.
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grannyring”The Sales Tax does not apply to casual and isolated sales by persons who are not, or who have been deemed by the Commissioner not to be engaged in the business of selling tangible personal property or furnishing any of the services subject to the Sales or Use Tax. The Sales Tax, likewise, does not apply to sales of tangible personal property or taxable services not normally sold by a dealer and which has been used by the dealer prior to the sale ... Kindly notice how carefully the regulation states: "The Sales Tax Does not apply ..." It does not state that the Use Tax does not apply. The OP’s notice from the state clearly wasn’t for sales tax, because under state rules that’s paid by the seller. In this instance, the bill is sent to the buyer - it's Use Tax by the state's definitions. I do agree with @djones51 that Tennessee’s rules are odd, but the state’s bill for Use Tax owed still looks valid based on everything presented here. |
grannyringTN residents are certainly not paying sales tax on Facebook and Craigs List type of used good sales They should be charged sales tax on FB and CL if the seller is a business with a sales tax certificate, unless it otherwise qualifies for the exemption as listed by the state. (Note that used items aren’t listed as exempt from sales or use tax.) If the seller for whatever reason does not charge tax, the state can assess a "use tax" on the transaction, as explained on the website and as the OP discovered. One thing to remember is that something is not rendered tax-free simply because tax is not charged. That’s the exact issue facing the "former guy" right now as well as the OP of this thread. |
grannyringUsed sales from private parties is not a retail sale by definition ... You’re mistaken. Retail sales include any private sales of items not intended for resale. That’s why the OP got a tax bill. For more information, see the state tax website that I’ve already provided you several times. In Tennessee’s case, it has even instituted a "use tax" so it can collect from users when a seller engages in your sort of argument. Again, that is explained on the website. Remember: The OP already received a tax bill with interest. To contest it, he’ll have to do a little better than your protest. Believe me, these taxing entities have heard all of the excuses before right up to and including, "I’m a sovereign citizen and not subject to tax." |
grannyringShow me where it says used items are taxed. Only retail sales are mentioned. The term "retail sales" includes the sale of used items between private parties. I'm not sure why you think otherwise. In any event, the proof you seem to seek is in the OP, silly: ... I bought a used amp from a guy in Canada through A’gon. But I paid the tariff on it. Now they also want tax." So he has a tax bill from the taxing authority, under the terms explained on the state website. If you think used items are somehow oddly exempt under Tennessee tax code, I’m sure the OP will be grateful for the appeal you’ll file on his behalf. When filing an appeal in a tax code dispute, you'll need to cite the exact language in the code that supports your claim. Good luck with that! |
grannyringWe just disagree. The tax was in error Not really. There’s a difference between disagreeing and being disagreeable. I provided you a direct link to the Tennessee Department of Revenue sales tax rules. According to the Department of Revenue, used items are taxable in Tennessee. So you’re arguing with them, not "disagreeing" with me. |
grannyringSeems
true unless you are a business. We common folk selling on Craigs List,
yard sales, Facebook buy sell trade, AudioGon etc.., pay and change no
tax.
Apparently you haven't bothered to read the OP, because he was charged the tax. As I noted, used items in Tennessee are not exempt from sales tax and when the tax is not collected, a companion "use tax" can be assessed by the state. Here's what the OP asked:
Are you
required to pay tax on a used amp or other used items? Has anyone else
encountered this? The answer is clearly, "yes." And that's why he received the tax bill. |
grannyring Show me where is says used goods sold by folks not running a retail business? Most states have exemptions for things such as yard sales, including Tennessee. But your claim was:
.... Used stuff, less cars in some instances, not taxed in TN and many states ... ... and that is simply false. You'll find no such exemption in Tennessee or in most (if not all) other states.
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grannyringUsed stuff, less cars in some instances, not taxed in TN and many states. No, you're still mistaken.
As I already noted, that’s not how in works in Tennessee. You won’t find an exemption for used items on its sales tax website.
In
addition to its sales tax, the state also has a companion "use tax"
that applies "when the sales tax was not collected by the seller on
otherwise taxable products brought or shipped into Tennessee. The use
tax applies to all items otherwise subject to sales tax ..."
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grannyringYou don’t pay sales tax in TN on a used item. The state made a mistake and must think the amp was new from a dealer. Nope, that’s not how in works in Tennessee - you won’t find an exemption for used items on its sales tax website. (In fact, the state invokes especially strict rules for taxing used motor vehicles.) In addition to its sales tax, the state also has a companion "use tax" that applies "when the sales tax was not collected by the seller on otherwise taxable products brought or shipped into Tennessee. The use tax applies to all items otherwise subject to sales tax ..." |
