Gunbroker ripping us off in sales tax calculations

[Mytmoss]

Gunbroker has found a new way to rip off Calfornians (and probably the rest of the country too).

First when I told them they illegally calculate sales tax based on where the person lives and not the location of the FFL (if firearm sale). They told me they had to fix their software. So far that is not done. I have to pay 3% more than I have to. This error has been confirmed by State Franchise Board.

Second, based on a purchase I made today, Gunbroker now charges a 1% fee for the privilege of collecting my sales tax. I am not sure that is even legal.

If I had not gotten a good deal on GB, I would avoid them.

I understand, but do not like the fact I have to pay sales tax. I just want to pay the correct amount owed.

[NeilMo]

GB is, more than likely, only reporting the tax based on your FFL and pocketing the rest

[Mytmoss]

GB is, more than likely, only reporting the tax based on your FFL and pocketing the rest

I thought that was a possibility, but they are charging the correct amount for where I live and assume that is what they are paying the state.

However the 1% fee to collect the taxes, that the are definitely pocketing. I have never been charged by anyone a fee to collect sales tax.

[Oldmandan]

Lawyers love this kind of lawsuit.

[The Gleam]

Gunbroker has found a new way to rip off Calfornians (and probably the rest of the country too).

First when I told them they illegally calculate sales tax based on where the person lives and not the location of the FFL (if firearm sale). They told me they had to fix their software. So far that is not done. I have to pay 3% more than I have to. This error has been confirmed by State Franchise Board.

Second, based on a purchase I made today, Gunbroker now charges a 1% fee for the privilege of collecting my sales tax. I am not sure that is even legal.

If I had not gotten a good deal on GB, I would avoid them.

I understand, but do not like the fact I have to pay sales tax. I just want to pay the correct amount owed.

The 1% buyer's premium is legal, if that is how it's advised, and common among auctioneers - BUT... they originally initiated it DURING active auctions with active bids, without sufficient advance notice it was being implemented, nor an update to auction pages while in progress.

They committed to billing it, even though it was never a charge disclosed up front prior to or during those first auctions when they started it.

It should have only been initiated at some point on new auctions only, and had been a detailed message in the auction terms/conditions from the very start of those auctions.

Also, how they are framing it may not be legal, such as you noted - a fee to collect the tax, when in fact I have only paid cash in person at the seller's location which included paying CA tax.

I'm not even sure how Gunbroker is involved since they never handled the gun, the item, nor the cash payment - and the head corp is based in Arizona. They are just blindly billing the seller with no line of communication to adjust the fees/taxes.

They may as well be autobots. I hear the customer service for sellers is absolutely terrible, lousy.

As for the tax, try this on for a rip-off: if the seller is local, and even though you are picking up the gun/item in person at the seller's location, whereby the seller is then NOT charging you for shipping, but the seller added shipping to his end charges out of rote (no matter who wins/won) - Gunbroker is STILL taxing and collecting that tax on the shipping charges from the seller, and in turn, the buyer - even if the seller confirms to Gunbroker NO SHIPPING COSTS applied or were charged.

Gunbroker is still mandating collecting the tax on that, even though you picked up the item from the seller in-person and paid in person. That has been going on since about January of LAST YEAR (2021)!!

That really racks up over time.

Over time, that has amounted to more than $100 of that unwarranted tax on shipping that didn't exist, for me alone. Just who is it they paying that tax to, on goods/service that never happened and can be proven didn't happen?

I've paid it to the seller(s) anyway, to be fair and not leave them hanging - but both I and the sellers have contacted Gunbroker numerous times about this issue - with no reply or reimbursement to either of us.

Now it's true that some states require charging tax on shipping - I get that, but that's not the problem here. The issue here is that no shipping was paid at all, to anyone, no shipping services were involved, and yet Gunbroker is still taxing the stated amount.

Being that Gunbroker is now part of a publicly traded company (AMMO, Inc. / POWW ) and operating sales in California, I'm sure the California Department of Tax and Fee Administration would like to hear about it, after more than a year of Gunbroker ignoring the issue - www.cdtfa.ca.gov/rptfraud.htm .

I'm sure the SEC and other state tax authorities would like to hear about that too.

As for your situation, try changing your address in Gunbroker to the seller's address, and pay the seller in person.

That way, the final tax-cost will be charged based on the tax rate where the seller is located ( but won't change the fact that these asswipes at Gunbroker are still charging tax on shipping that was never realized.)

--

[sigstroker]

They are criminals for sure, but for sellers is generally the best place to get your items noticed. When I lived in kali, I used the CG marketplace because that was my best option. If you're a seller and in kali, that's likely the best option, unless your stuff is less likely to run into legal problems out of state.

[sigstroker]

I've paid it to the seller(s) anyway, to be fair and not leave them hanging - but both I and the seller have contacted Gunbroker numerous times about this issue - with no reply or reimbursement to either of us.

The seller is left out of the equation. They don't get the "tax", it's charged to the seller by GB. At the end of the month it's include in the bill from GB.

Even if they wanted to cut the buyer some slack, they could only do it by paying the tax themselves.

[The Gleam]

The seller is left out of the equation. They don't get the "tax", it's charged to the seller by GB. At the end of the month it's include in the bill from GB.

Even if they wanted to cut the buyer some slack, they could only do it by paying the tax themselves.

I know; I get how that part works.

However, to re-phrase my point, is that I'm paying the seller in person, in cash, which has been shown/documented to GB, and the seller confirmed the same to them.

Gunbroker absolutely refuses to adjust those fees/taxes for the seller, won't even communicate on the issue - thereby it's passed onto the buyer.It's the reason I paid the buyer those unjust taxes anyway, because I realize GB is not working with them on the issue either, and I happen to like those sellers from whom I buy to not leave them holding the bag.

Gunbroker has ignored that fact from both of us, thus collecting a tax without any actual goods/services rendered.

---

[MyOdessa]

Sounds like a very good class action lawsuit is in GB future.

[jeremiah12]

Gunbroker has found a new way to rip off Calfornians (and probably the rest of the country too).

First when I told them they illegally calculate sales tax based on where the person lives and not the location of the FFL (if firearm sale). They told me they had to fix their software. So far that is not done. I have to pay 3% more than I have to. This error has been confirmed by State Franchise Board.

Second, based on a purchase I made today, Gunbroker now charges a 1% fee for the privilege of collecting my sales tax. I am not sure that is even legal.

If I had not gotten a good deal on GB, I would avoid them.

I understand, but do not like the fact I have to pay sales tax. I just want to pay the correct amount owed.

Before GB started charging the sales tax, I always had to pay the sales tax based on the location of my FFL, not on my address. My FFL lives in an area that charges a 2% higher sales tax rate. When I asked about this, I was told the FFL and FTB that since the FFL was the one responsible for submitting the sales tax, and the gun was shipped to the FFL to legally complete the transaction, the sales tax was to be based on the location of the FFL, just as if I had purchased a gun directly from the stock of the FFL. The only time this does not apply is with motor vehicles.

My last 3 purchases from GB, they have undercharged me the sales tax because they have not taken into account the extra added on by the city so I have had to pay the extra when picking up.

[Mytmoss]

Before GB started charging the sales tax, I always had to pay the sales tax based on the location of my FFL, not on my address. My FFL lives in an area that charges a 2% higher sales tax rate. When I asked about this, I was told the FFL and FTB that since the FFL was the one responsible for submitting the sales tax, and the gun was shipped to the FFL to legally complete the transaction, the sales tax was to be based on the location of the FFL, just as if I had purchased a gun directly from the stock of the FFL. The only time this does not apply is with motor vehicles.

My last 3 purchases from GB, they have undercharged me the sales tax because they have not taken into account the extra added on by the city so I have had to pay the extra when picking up.

Where the FFL is, it is 7.25 and where I live it is 10.25. GB goes by my address and per the state I am being overcharged. The FFL said there is nothing they can do about it as GB sets the tax rate and the FFL would lose money if they did not charge me for it. The state benefits because they get 10.25% and do not have to give it back

[Rcjackrabbit]

GB is a joke. Why are you using them. Vote with your feet.

This is like listening to some dumb blond complain her boyfriend is beating her.

Leave.

[Sure Shot 45]

Recently purchased an upper on GB for $650. After taxes/fees I paid $741.50 plus another $20 for shipping bring the total to $761.50

The taxes/fees were $91 or 14%.

I'm not using GB anymore.

[The Gleam]

GB is a joke. Why are you using them. Vote with your feet.

This is like listening to some dumb blond complain her boyfriend is beating her.

Leave.

That might be easily said and done for someone buying a pedestrian, every-day Glock 19, but it's quite a different matter when buying a factory nickel P7M13 or LAR Grizzly Mark V available by PPT, or something extremely rare like a documented Garand M1C, Webley-Fosbery, or Borschardt pistol.

If the seller is using Gunbroker, it sets the terms that you will inevitably be using Gunbroker too - you don't simply have the ability to go pick one of those up at Turner's or Big-5 instead.

It's not complaining about price or legitimate fees; nor is it simply bad customer service.

There are fraudulent charges being procured by the hundreds and thousands each day - and inquiries of that are ignored by Gunbroker, which happens to be a publicly traded company.

It deserves discussion and exposure because it has been ignored for more than a year's time.

On the one hand, you want to be very forgiving because Gunbroker is a valuable resource and avenue for dealers and buyers alike, as well as a 2nd Amendment friendly ally. Bringing attention of their fraud billing to authorities can cause more trouble than is good for anyone.

So you let the padded cost slide a few times, because it's small - but they don't fix it, it's been just over a year of their ignoring the issue - so now it's time to take action.

---

[sbo80]

^additionally, if you're looking for something specific, even eating all the GB fees and taxes, you still might end up cheaper than some of the marketplace markups here...