They are now charging a compliance fee of 1%. It is charged to the seller who then must charge the buyer. On top of the tax that was added this year this means GB is up 8% this year from last.
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The Cost of GB Just Went Up 1%....
- Thread starter wvsig
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OP
I use GB a lot because the stuff I am looking for is not available in the local market. I have seen 1 Browning Hi Power in a store in the last 5 years and I bought that one.
Hm. Maybe so. My knee-jerk raction was time spent calculating & being a private tax collecting agent was eating into their margins, so they raised prices - but in a way that deflected blame onto some other entity.
OP
Ebay did it a few years ago. GB system is messed up. The seller is charged the tax and is supposed to collect it because they do not have a standardized checkout system that you have to use. This is just going to push more people to other sites and people going around GB.
I guess I made my last purchase from GB for a while. In before the lock!
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The War Wagon
Well-Known Member
Glad I last bought firearms off of it in 2018!
OP
I am a buyer not a seller so GBās changes hurt. I like guns international but as a buyer the low cost allow people to sit on their listings at high prices.
If buying make an offer and go from there. Most start off with high prices expecting to deal down. Those that donāt go to the rear and wait for a sucker. A little shopping on GI will tell you which folks will deal and those that wonāt. Good luck.
I suspect you could call BS on GB's "compliance fee." Yes, GB incurs costs to program their system for compliance, but I bet they more than make up that cost from interest earned on taxes collected daily on every transaction but only remitted periodically (generally monthly) to the states.
GB was my go to for things I was interested in...old stuff...but unless it's a crazy good deal, I just wait for whatever I want to show up in Wagram.
I see this as a good thing. Most of what I want will eventually show up locally and itāll happen sooner if the cost to transact elsewhere is higher.
Now, would someone please list a factory nickel S&W model 41 in the bst where there is no compliance fee.
Now, would someone please list a factory nickel S&W model 41 in the bst where there is no compliance fee.
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GB continues to level the playing field for LGS's everywhere. As far as I know, there is still no sales tax charged by sellers in TX and FL. I try to do business with them when I can. Dont mess with Texas!
In other words, the new laws/regulations are costing Gun Broker time/money to apply and collect on.
I'm not surprised that they would want to be reimbursed for that time and money.
I'm not surprised that they would want to be reimbursed for that time and money.
Murtaugh
Well-Known Member
Is anybody paying interest these days? I think most accounts that pay anything are paying between .002 and .005 annually. That is a penny or two of interest on a $1k gun, if it sells.
Jmoser
Well-Known Member
Internet sales tax collection is a nightmare for all internet merchants. Not just 50 states to keep track of but there are county level taxes in many places and even city level in some. Have to pay for a zip code service to keep up to date and calculate tax by ship-to location.
Don't bash GB too hard - As for the compliance fee I'm sure they pay plenty people to fill out reams of paperwork and stay up to date on the ever changing gun laws in all jurisdictions from municipal to Federal.
Don't bash GB too hard - As for the compliance fee I'm sure they pay plenty people to fill out reams of paperwork and stay up to date on the ever changing gun laws in all jurisdictions from municipal to Federal.
Murtaugh
Well-Known Member
With many guns selling for almost twice the pre Biden prices, and considering gunbroker is one of the few places you can find most things, I am going to guess a lot of people will pay the 1% for the next year.
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Everyone wants in on the higher profits.
OP
You can find .50-1% depending on the balance you hold.
The Supreme Court ruling in 2018 set off a wave of state laws for sales tax enforcement.
OP
At this point I don't think it as much about profits as administration of the remittance of the taxes collected. They either have to pay people to do it or pay someone to create an automated system. Both will be a cost to them. I don't blame them and am not "mad" I am simply pointing out that the cost of doing business there is going up. To me this removes GB as a source for common items which can be found anywhere. Older vintage pieces and true one of a kinds are worth paying the extra fees because with GB you would have never seen them unless you live in an area with a huge local market which I do not.
Honestly, this was in the works for at least two decades since the internet and internet sales took off in the late 90's and we all saw it coming.
What amazes me is how long it took to get there.
Probably would have gotten there a lot sooner if there were a federal sales tax, that's for sure.
OP
Yup almost all states already had laws on the books what individuals were supposed to remit sales tax to the state via tax returns. The big businesses like Amazon, Overstock, Ebay etc... all fought the states for a longtime which held this off.
Murtaugh
Well-Known Member
At 1% annual on a full month of tax money, I think you have to sell $110 million dollars worth of guns to pay for one month of a programmer's time.
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Interest rates paid to consumers are nearly nonexistent, but the same is not necessarily true for large corporate accounts. Even 40 years ago, banks had perfected "sweep" accounts that moved money overnight from bank deposit accounts to higher-yielding alternatives.
Had a chance to buy one, had it in my hands and didnāt know what it was, neither did the shop. Price was right, but passed because too much bling.
Murtaugh
Well-Known Member
Yes, in simple terms it is obviously a few extra dollars. From what I can find, gunbroker is only about a $60 million per year company which is $21k per year in tax float. So in reference to the post I originally quoted, I doubt they are raking it in far in excess of the costs of sales tax and other compliance with tax float.
I am pretty sure with fed and treasury rates below .1 % that nobody is getting .5-1% on a sweep account.
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