Paying Too Much Tax

[transplantn]

Can someone tell me why I was charged $8.46 tax on an item that cost $59 on an auction I won?
The state tax in TN is 9.5%, which would be about $5.60.
I was also over charged the last two times I bought things on eBay. 

Is there any chance I could be tax exempt?

TIA for any input on this.

[buyselljack2016 · Accepted solution]

@transplantn 

Many states also require sales tax to be paid on the shipping amount of the purchase.

If you include the shipping does the tax amount look correct?

[dryophelia]

@transplantn 

It is possible Virginia is one of those states that also collects tax on the shipping. 

[buyselljack2016]

[transplantn]

Gosh, how does that make sense, to tax the shipping cost? Inflation everywhere we turn. 

You'd think now that we have to pay tax on the items, that that would be enough. 

59 + 30 for shipping = $8.46 tax. 
It seems like a ripoff.

reminds me of the Beatles song Taxman. 

[buyselljack2016]

Contact your state representatives if you feel that taxing the shipping is the wrong thing to do😊

My state required me to pay tax on out of state purchase even before the new "internet" tax laws started collecting those taxes.

[klhmdg]

Voting has consequences…… states pushed for this and some went for total sales including shipping.

[paisleypockets]

It's not just you that ebay is totally inept with.  I have brought it to their attention several times here in VA.  They have no idea how to set up the proper tax rates because they don't have anyone on staff competent enough to do so.  I'm reporting them to VA Dept of Taxation. 

[7606dennis]

You will have to check with your states' department of revenue to determine if you qualify for any type of exemption.

Does TN consider S&H taxable?

[mudshark61369]

@paisleypockets ,

Does Virginia allows counties or municipalities to add their own sales tax to the state's tax?  If it does, and you do not have a + 4 zip code entered on your registered shipping address.  Even if you live in an area that doesn't have a local sales tax, You will be taxed at the highest rate Va. sales tax + county/municipality tax in the state.  It may seem unfair, but that's the way state legislatures have set up the online tax laws in many states.  

[transplantn]

Yes, thank you. 
I'm going to have to take that into account when I buy things on eBay. 
The guy wanted $30 for shipping which is more than it's worth, but I still got a decent deal on this item. 
But don't pay more for shipping unless youu don't mind being taxed for it to add insult to injury. 

[donsdetour]

Shipping is considered a service and a lot of states tax it.

Ahh the way to tax a dollar one thousand times over its value...and more:

That sales tax thing has always been a way to make em states a lot of money on that same dollar being spread to all the different folks that got it....