Should I pay sales tax when selling guitars?

[microdmitry]

We've been discussing taxation with my co-workers and they say I must pay sales tax when I'm selling my gear. This doesn't seem right to me, because sales tax has been paid on this gear once, so paying it again would mean double taxation.

What's your opinion on this? Do you declare stuff like this in your tax paperwork?

[Rich]

You can read more in your state sales tax laws, but they're pretty much all the same unless like Delaware your state collects none.

Everytime something is sold [something taxable, varies by state but tax exepmt would be food, clothes, etc.] tax is due. It's not YOUR responsibility to pay it, it's the buyers responsibility. If he doesn't pay sales tax then he is supposed to declare it on his state tax return and pay use tax. Of course nobody does, but that's the law.

[ScottB]

In Maryland, the casual isolated sale of personal property (item less than $1000) between individuals is exempt from sales tax. Yard and garage sales are exempt in this manner. On the other hand, if a person makes a living from buying and re-selling, such as at a flea-market, big brother is watching and you'd better collect the tax and send it in.

This exemption doesn't apply to used cars and boats. They nail you with a 5% sales tax when the vehicle is re-titled.

[microdmitry]

I'm wondering if they will give me a tax break for the gear that I sold for less than I paid for it. Which would be most of it.