Do I need to charge tax on used items that I resell in a retail store?

Question

I live in Pittsburgh PA. and I own a used movie and video game store much like EB Games. I hear conflicting information that when I buy a used movie or game from one person in the store and then resell it to another that I should/shouldn't charge sales tax again becuase the item was originally taxed when purchased new.

Does anyone know Which is correct?

Side bar - If I do not need to chagre sales tax do I need a resellers permit or something?

Thanks all!

Answer 1

If you state has a sales tax I am sure you will need to charge tax.

Like when you buy a used car you still have to pay taxes even thoguh the first own paid taxes.

Doen;t hardly seem fair but tat is how our Gov. work. Move to Oregon we have no sales taxes LOL.

Nanc Johnson
Director
SmallBusinessReferralNetwork.com

Answer 2

Sales Tax On Used Goods

Answer 3

The smart thing to do is contact your state and local government rather than trust your tax status and legality to the bozos on here.

You have a retail store. It's not a garage sale. YOU pay tax on sales. Any other used item that is re-sold in most locales incurs sales tax because it is a sale. If used cars are not taxed in your state, I guess I'll come buy there.

Answer 4

In New York state, you WOULD need to collect those taxes... however I do NOT know what the laws are for PA----however, if you call tomorrow to your Pennsylvania Department of Tax and Finance or Department of Revenue (in NY it is the State Department of taxation and Finance--but each state calls it a different name)... Ok call them and ask for SALES TAX INFORMATION----you should get the proper answer right from the horses mouth.

Answer 5

Yes you have to charge sales tax; whether the item is new or used makes no difference.

Answer 6

you know the government. Charge sales tax or include it in your resale price.