Illegal sales tax?

[linamoon09]

I just bought a $10.99 BIN item that ships from Louisiana. I live in New Jersey, but $1.00 was added to my total at checkout for "Sales Tax." Is this how it works now? Charged extra for sales tax in another state?

[chinohighcowboys1963]

You apparently are unaware of the U.S. Supreme Court decision last year on taxing internet purchases. This has led to new state laws that MANDATE tax collection on items purchased over the internet.

It is your STATE that has enacted the laws that eBay is following. They have NOTHING to do where the seller is located. If you buy something over the internet ... you will be taxed according to your state's laws. eBay collects the tax and sends it to the buyer's state.

[linamoon09]

I knew there had been changes but haven't seen the new process in action yet. Many retailers and sellers still don't add sales tax without a physical presence in my state. I also wondered about the supposed "sales tax" amount, exactly $1.00, not what it should be for my state on the purchase amount. Thanks for your response.

[annadryl]

You're paying the tax (think of it as normal, ages-old Sales Tax on goods) to your state, not LA or wherever. It's not what it is or where it's from, it's just sales tax for your state.

States have been missing out on this online revenue (loophole) for a couple of decades at least. It's now slowly being sussed out.

My state doesn't have sales tax so we've always paid in other ways> mainly income and property taxes. We've never had this loophole!

Good luck~

[pburn]

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@linamoon09 wrote:

I also wondered about the supposed "sales tax" amount, exactly $1.00, not what it should be for my state on the purchase amount.

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New Jersey started requiring that sales tax be collected on internet sales on May 1, 2019. 

I see the sales tax rate in New Jersey is 6.625%; however, your rate may include county and/or city sales tax as well. New Jersey also taxes the shipping charges if the items being delivered are taxable, so, if the purchase of your $10.99 item also had additional shipping charges, that amount would also be taxed.

[7606dennis]

If you check with your state's taxing agency, you will probably discover that you were suppose to be paying use tax on items that you had delivered to you in New Jersey all along.  

[kataggr-44]

I am experiencing the same thing.  On one purchase the sales tax was not based on my state...and with the other I was charged sales tax on clothes when my state does not charge on clothing items.  I understand why we are paying but at least it should be accurate.

[mansons2005]

General reply -
Be certain that your state is not requiring use tax on all e-commerce transactions. I know that in Illinois the "normal" exemptions will not apply on ANY internet purchases.

Also, according to a post by an eBay employee you should make certain that your registered zip code includes the additional 4 digits which are used to compute the correct tax. Otherwise you are charged the "blanket" amount for that area.

[kataggr-44]

Another posted posted a link that we have to put in the last 4 digits of our zip code otherwise the system guesses the tax you owe.....ebay should have pinned that link to the top because I wonder how many of us were overcharged?

[linamoon09]

Yes the computation should be accurate. That's what troubles me about this. My NJ sales tax on the $10.99 total purchase (including shipping) should be $0.73 ($10.99 x 6.625%)--not $1.00. This tax rate hasn't changed in years and there's no additional "use" tax in NJ. Looks like some sellers here are just making up a tax amount, or as you mention, kataggr-44, charging tax when there should be none (like on clothing in NJ). And you can't know what they're going to charge until you've agreed to the purchase! I accept that we must pay sales tax but I object to the lack of transparency and being hijacked for more than I owe, that's all.

[bonjourami]

Sellers are not charging the use tax..Ebay is, and remitting it to the proper state.

[the*dog*ate*my*tablecloth]

In some states sellers ARE still charging and remitting sales tax. For instance Massachusetts. If I were to sell something on Ebay I would be responsible for knowing what is taxable and the rate.

I do think I read NJ has a Marketplace Facilitator tax in place.

[the*dog*ate*my*tablecloth]

I think this link has the most recent Ebay status for Marketplace Facilitator States by date.

https://www.ebay.com/help/selling/fees-credits-invoices/taxes-import-charges?id=4121#section4

Any States not on that list which have a sales/use tax will still require tax capture by sellers for at least in-state sales.

I'm hopeful that when the MF laws roll out, Ebay will be more accurate when it comes to sales tax. I know I have been mischarged by sellers on clothing in the past.

[bonjourami]

yes thats true.