Denver Veloswap Oct 18 - sales tax?

[bargainguy]

Thinking of getting a table for this event, but somewhere in my mind lurks the presence of a Denver 7.73% sales tax on all sales from any vendor at the swap, private or commercial. Unusual tax situation for a swap meet, the only swap I know that works this way.

I'm not seeing many details of this online and wonder how this works. I know you have to remit a form which lists all sales and then calculate reimbursement to the city and send along, otherwise they'll get mighty upset.

In practice, how does this work? Do you mark up prices to compensate and eat the tax bill yourself? Or do you agree on a price to a purchaser and then ask them to pay the tax?

[redir]

Honestly? I wouldn't even go there if it were me.

[oldpotatoe]

Originally Posted by bargainguy

Thinking of getting a table for this event, but somewhere in my mind lurks the presence of a Denver 7.73% sales tax on all sales from any vendor at the swap, private or commercial. Unusual tax situation for a swap meet, the only swap I know that works this way.

I'm not seeing many details of this online and wonder how this works. I know you have to remit a form which lists all sales and then calculate reimbursement to the city and send along, otherwise they'll get mighty upset.

In practice, how does this work? Do you mark up prices to compensate and eat the tax bill yourself? Or do you agree on a price to a purchaser and then ask them to pay the tax?

How it works is ya tell them you didn't sell anything. Business' worry about it and follow, private individuals, never heard of anybody collecting or paying sales tax. Cash and carry, no checks or cc.

[bargainguy]

Originally Posted by oldpotatoe

How it works is ya tell them you didn't sell anything. Business' worry about it and follow, private individuals, never heard of anybody collecting or paying sales tax. Cash and carry, no checks or cc.

I wouldn't accept anything other than cash anyway, but I want no part of tax evasion, traceable or not. Call it what you will, but I believe in being upfront and above board, and letting other folks deal with the opposite. Just my M.O.

Wouldn't surprise me if there were "tax spies" lurking and monitoring large sales from specific booths, then comparing notes when the itemized tax bill arrives. They might not care so much on the little stuff, but sell a $2K bike and not claim it, they suddenly might become very interested.

Was more interested in how private sellers handle the tax issue - anyone?

[RedRider]

...

[buldogge]

Pick a price that you're comfortable with, including the 8%, and then simply back the tax out afterwards.

This avoids a change drawer/etc.

-Mark in St. Louis

[oldpotatoe]

Originally Posted by bargainguy

I wouldn't accept anything other than cash anyway, but I want no part of tax evasion, traceable or not. Call it what you will, but I believe in being upfront and above board, and letting other folks deal with the opposite. Just my M.O.

Wouldn't surprise me if there were "tax spies" lurking and monitoring large sales from specific booths, then comparing notes when the itemized tax bill arrives. They might not care so much on the little stuff, but sell a $2K bike and not claim it, they suddenly might become very interested.

Was more interested in how private sellers handle the tax issue - anyone?

I was talking about private sellers, not booth owners that have tax ID numbers.

Re read me post.

[bargainguy]

Yep, and I still don't agree. As a private seller, if I wanted to evade the sales tax, I wouldn't even be asking this question.

[oldpotatoe]

Originally Posted by bargainguy

Yep, and I still don't agree. As a private seller, if I wanted to evade the sales tax, I wouldn't even be asking this question.

Ok, then charge 7.76% more or whatever it is, log/record every sale, everything you sell and be prepared to do the paperwork...easy.

This started life as a 'swap meet', make my junk your junk. It has been invaded by huge resellers like Cambria and Richardson's bike mart, big bike shops doing inventory clearance...why the sales tax gig. I think velo'swap' has lost a lot and why I no longer go. It's almost a for sale Interbike, no longer for the little guy.

[pbarry]

Even three years ago there were some vendors who had usb card readers. E-trail and all that. Plenty on cash flying around the Natl Western building still. Live dangerously, get a table.

[oldpotatoe]

Originally Posted by pbarry

Even three years ago there were some vendors who had usb card readers. E-trail and all that. Plenty on cash flying around the Natl Western building still. Live dangerously, get a table.

It's big biz for some in and out of state BIG bike stores plus outside reps hawking their samples..no thanks..I liked it when it was at the CU field house. Really a little guy swap meet then..no mas.

[pbarry]

I was away from home in the early years, darnit.

The setup on Friday is when the best deals are made. For the last few years, a guy from CA rides around on a big wheel kick scooter and cherry picks the best bikes. Then there was a small group that would wait for the Mavic support wagon to roll in and buy up almost everything he had in the first 20 minutes on Saturday.

[Bruce K]

I have no clue about tax laws in CO but if you are a private seller and not a business isn't your participation essentially a yard sale?

I don't know of any yard sale that collects taxes.

You might want to contact the swap organizer to determine what the rules are or what deal the organizer might have made with state authorities

BK

[bargainguy]

I found this two-page PDF tax form online for the 2011 veloswap. Unless they've changed their tune since (and with taxes, do they ever really go away once started?), it's quite clear that they go after folks who don't fill out the form and/or remit taxes:

https://www.pdffiller.com/en/project...?form_id=56575

[pbarry]

Originally Posted by bargainguy

I found this two-page PDF tax form online for the 2011 veloswap. Unless they've changed their tune since (and with taxes, do they ever really go away once started?), it's quite clear that they go after folks who don't fill out the form and/or remit taxes:

https://www.pdffiller.com/en/project...?form_id=56575

Filled out simikar forms for farmer's market sales in NYC. No big deal for a regular vendor.

You must have quite a stash to be concerned about a two-day mostly cash event. Good luck with the long form if you don't already file that way: Proving your initial purchase investment, and declaring profit or loss based on your receipts from VS. Remember, many states have mandated sales tax on online purchases--only a few enforce the legislation..