Will New York State's Sales Tax Pursuits Increase Art Prices?
- August 09, 2016 18:19
The aftermath of a recent settlement between New York State and international art dealer Gagosian Gallery has yet to be measured on the market.
Last month, New York State reached a $4.28 million settlement with Gagosian and its California affiliate for "noncompliance in two surprising areas," involving standard business practices of shipping and taxes, write Diana Wierbicki and Seth Cohen for Forbes.
They write of the case's outcome: "If New York galleries and auction houses are responsible for facilitating and paying for all out-of-state shipments, they will likely have to increase their commissions or sale prices to cover the increased costs of doing business in New York, which will provide an advantage to their global competitors, who are not incurring those costs."
