(Topic ID: 250903)

**SOLVED**: Pinball importing and State Taxes - Anyone w/experience?


By delt31

8 months ago



Topic Stats

  • 22 posts
  • 13 Pinsiders participating
  • Latest reply 8 months ago by delt31
  • Topic is favorited by 2 Pinsiders

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    #1 8 months ago

    Long story short, I bought a game from a seller in Canada and submitted the required paper work - no issues. 6 months later, I just received a tax payment request as my state (PA) is citing the estimated value of the game and applying a tax on it.

    Two questions:

    1) Should this pin even be taxed by the state? There is a section where I can appeal....
    2) I ended up trading for this game (giving the seller one of my games). Should I alert the state of that and then suggest paying the difference in value of my original and his game?

    Pretty random but if someone has experience, lmk or PM directly. Thanks!

    #2 8 months ago

    If you do have to pay taxes per your state, I would for sure think you should only pay the value difference between the 2 games since it was a trade.

    #3 8 months ago
    Quoted from delt31:

    I ended up trading for this game (giving the seller one of my games). Should I alert the state of that and then suggest paying the difference in value of my original and his game?

    If they were treating it like a car sale, the tax would be the difference between the new car price and the trade in value. So just say they were of equal value. If they want to really get into it they might make you (and possibly the other guy) sign an affidavit to that effect.

    #4 8 months ago

    What required paperwork? At customs? Or did you open up a can of worms by sending in a state form.

    Was it a used item purchased from an individual? If so, seems like someone in Harrisburg misclassified it. Generally private sales aren't taxed unless it involves titles, like cars, boats and houses.

    I'm interested in the transaction though. How much are they after and how did they estimate its value.

    #5 8 months ago
    Quoted from delt31:

    Long story short, I bought a game from a seller in Canada and submitted the required paper work - no issues. 6 months later, I just received a tax payment request as my state (PA) is citing the estimated value of the game and applying a tax on it.
    Two questions:
    1) Should this pin even be taxed by the state? There is a section where I can appeal....
    2) I ended up trading for this game (giving the seller one of my games). Should I alert the state of that and then suggest paying the difference in value of my original and his game?
    Pretty random but if someone has experience, lmk or PM directly. Thanks!

    How Much? Couple bucks or couple hundred? I agree with Woody, should only pay difference of value.

    #6 8 months ago

    What's the PA position on personal property tax? Only certain classes of items are usually taxed (e.g. cars, boats, motorcycles, etc), but each state has their own guidelines.

    Or is this a sales tax?

    I'd just pay it unless it's a crazy amount. You're in for a mountain of paperwork if you try to pay the difference - how do you classify the value of the game you traded? How do you arrive at the number you and the other party valued each game at? How can you show and prove that you did in fact ship the game to them, and there were no additional related transactions?

    #7 8 months ago

    Hey everyone -

    To address the questions, I had to file paperwork for this to get let into the country so nothing was given to the state directly. What PA did was see that I brought the game in (as I used my address in PA for customs) and they used the customer agreement we had in place for both of us which showed the value of each of our games when getting it through customs

    The tax amount is almost 1k so I'm def going to push back. To be fair they prob didn't see the sellers game I was giving him. Good news is I have all the paperwork we used to get the game in here, including sellers to prove the amount I gave too. In addition I wired money to make up the difference in table value which I will include receipts as well.

    With the value of my pin and the cash it was an equal trade hence the deal so I really shouldn't be paying anything from what I gather. I will send it all in and see what happens.

    Appreciate the help

    #8 8 months ago

    My advice: don't take tax advice from people you meet on the internet...even if they have experience in this space their experience may be from a different place/state (or from a different era) and may not be pertinent to you. Call your CPA and follow his/her advice. Just my personal suggestion.

    #9 8 months ago

    Well that means you spent over 15K from a retailer, so yeah, I see why they followed up on it. Good luck.

    And by the way, I stayed at a Holiday Inn Express last night, so you should believe my tax advice!

    #10 8 months ago

    haha I didn't spend over 15

    As for tax advice, there really isn't too much to this. I'll submit the paperwork and if they deny it I'll need to do some deeper digging.

    Thanks gents

    #11 8 months ago

    Then I don’t understand PA math. $1,000 taxes @ 6% equates to a $16,666 purchase.

    #12 8 months ago
    Quoted from Black_Knight:

    Then I don’t understand PA math. $1,000 taxes @ 6% equates to a $16,666 purchase.

    They probably looked up to price on Ebay

    #13 8 months ago
    Quoted from Black_Knight:

    Then I don’t understand PA math. $1,000 taxes @ 6% equates to a $16,666 purchase.

    It's 7% where delt lives.

    #14 8 months ago
    Quoted from ercvacation:

    It's 7% where delt lives.

    I'm basically paying for private school my taxes are so high. Haha

    #15 8 months ago
    Quoted from delt31:

    I'm basically paying for private school my taxes are so high. Haha

    I feel your pain!

    #16 8 months ago

    I read on another thread [sorry couldn't find that post again] a while ago that they treat a cross-border trade like you sold the games to each other and tax it like its a "pure buy".

    #17 8 months ago

    In PA they call it "use tax" and anything sold outside of PA brought into PA (new or used) is suppose to have sales tax paid directly to the state. They started this about 3 years ago and have been cracking down on people more and more. Not something to mess with - pay your taxes and be done with it.

    2 weeks later
    #18 8 months ago

    A use tax? Time to move!

    #19 8 months ago
    Quoted from too-many-pins:

    In PA they call it "use tax" and anything sold outside of PA brought into PA (new or used) is suppose to have sales tax paid directly to the state. They started this about 3 years ago and have been cracking down on people more and more. Not something to mess with - pay your taxes and be done with it.

    Portability, FTW.

    What a crock. The State has no right to seek taxes on this item. It wasn't sold in state. It wasn't even sold in country. It is straight up theft.

    #20 8 months ago
    Quoted from guitarded:

    Portability, FTW.
    What a crock. The State has no right to seek taxes on this item. It wasn't sold in state. It wasn't even sold in country. It is straight up theft.

    I don't agree with the law but it is the law. In my opinion NOTHING used should be taxed because tax was already collected when it was sold new. But like every other thing involving our government they keep doing less and wanting more of our money. Used vehicles bug me the most because they are typically a big ticket item that gets taxed every time a vehicle changes hands?

    #21 8 months ago

    Well I'll update this once I get the states response..... Obviously I'm saying not necessary but also don't care that much in the event they disagree I'm just paying.

    #22 8 months ago

    Great news.....I heard back from the state and they're reducing the tax amount from 980 to 280 - recognizing the fact I trade the game against another and therefore reducing the taxable amount. Nice.

    Thanks guys

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