Sales Tax

[arkusaj7]

Why does eBay charge sales tax on everything now? This isn't even legal or appropriate. 

According to the law, sales tax is to be paid only a single time. Any item that is marked as Used, or Refurbished on eBay should not have taxes collected. This is simply a scam on the part of eBay. 

Please do not respond with the tripe of "it is up to the user to setup their tax tables" either. If you were attempting to make a system of tax collection work properly then the default settings should collect taxes based upon the item type AT MINIMUM (meaning that only items marked as New would even have the OPTION of tax).

Not only that, but even if an item is New, the nature of eBay is such that no item on this entire website should EVER be eligible for sales tax collection as 100% of the items should presumably have been purchased via retail channel PRIOR to sale on eBay. Even those with an eBay store should never have their items taxed above and beyond what their business taxes are already paying. It simply does not make any sense.

Every user of eBay should demand that taxes taken on their orders be immediately remanded. This is simply a scam on the part of eBay, not a legitimate tax.

[fashunu4eeuh]

Hi, while i agree with some of your points, i can assure you that the move to tax online goods has nothing to do with eBay. It is the Supreme Court ruling in 2018 that has mandated that taxes be paid on internet sales per each state’s law. Below is a link to a Forbes article that provides good background and current situation on the new tax laws.

https://www.forbes.com/sites/kellyphillipserb/2019/10/02/new-sales-tax-rules-take-effective-this-wee...

[eburtonlab]

@arkusaj7 

Laws have changed in many states since the 2018 US Supreme Court Wayfair case.

eBay and other online marketplaces must collect sales tax from buyers who have items shipped to 37 states plus DC. Since the tax is levied on the transaction rather than the item itself, used items are not exempt. The fact that tax may have been paid on a prior transaction is irrelevant.

See here for details:

https://www.ebay.com/help/buying/paying-items/paying-tax-ebay-purchases?id=4771

https://blog.taxjar.com/marketplace-facilitator-explained/

[arkusaj7]

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@fashunu4eeuh wrote:

Hi, while i agree with some of your points, i can assure you that the move to tax online goods has nothing to do with eBay. It is the Supreme Court ruling in 2018 that has mandated that taxes be paid on internet sales per each state’s law. Below is a link to a Forbes article that provides good background and current situation on the new tax laws.

https://www.forbes.com/sites/kellyphillipserb/2019/10/02/new-sales-tax-rules-take-effective-this-wee...

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Please. People keep talking about this but have apparently never read it.

1) How many stores on eBay are making MORE than $100,000 a year from their eBay store?

Only those are subject to sales tax collection.

2) Only new items are subject to tax collection.

Anything used, refurbished, or even New items that were not purchased wholesale are not subject to sales tax collection.

3) Only STORES, with a valid tax id, under which to remit taxes, are subject to collect sales tax.

If you or I sell something ourselves, personally, even if it is new, there is no sales tax. We already paid sales tax when we bought it via a business with a tax id. 

4) I don't need to pay sales tax to China or Canadian sellers. This is completely fabricated.

Yes, some sales tax should be paid and I'm well certain that eBay is remitting this tax. 

Do NOT let them fool you into thinking that the manner in which it is being collected is not a clever way for them to charge $100 and pay $2. eBay exists because they charge people transaction fees. This is just a way to start charging the BUYER transaction fees as well as the Sellers.

[eburtonlab]

@arkusaj7 

The thresholds you quote are relevant for remote sellers who do not use an online marketplace such as eBay. In that case, the seller is responsible for collecting sales tax from buyers, and remitting to the state.

For marketplace sellers, the marketplace (such as eBay) handles the collection and remitting of taxes to those 37 states.

If you mention which state you are sending your items to, someone can likely point you to the relevant laws if they are online.

[wint_5631]

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@arkusaj7 wrote:

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@fashunu4eeuh wrote:

Hi, while i agree with some of your points, i can assure you that the move to tax online goods has nothing to do with eBay. It is the Supreme Court ruling in 2018 that has mandated that taxes be paid on internet sales per each state’s law. Below is a link to a Forbes article that provides good background and current situation on the new tax laws.

https://www.forbes.com/sites/kellyphillipserb/2019/10/02/new-sales-tax-rules-take-effective-this-wee...

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Please. People keep talking about this but have apparently never read it.

1) How many stores on eBay are making MORE than $100,000 a year from their eBay store?

Only those are subject to sales tax collection.

2) Only new items are subject to tax collection.

Anything used, refurbished, or even New items that were not purchased wholesale are not subject to sales tax collection.

3) Only STORES, with a valid tax id, under which to remit taxes, are subject to collect sales tax.

If you or I sell something ourselves, personally, even if it is new, there is no sales tax. We already paid sales tax when we bought it via a business with a tax id. 

4) I don't need to pay sales tax to China or Canadian sellers. This is completely fabricated.

Yes, some sales tax should be paid and I'm well certain that eBay is remitting this tax. 

Do NOT let them fool you into thinking that the manner in which it is being collected is not a clever way for them to charge $100 and pay $2. eBay exists because they charge people transaction fees. This is just a way to start charging the BUYER transaction fees as well as the Sellers.

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eBay as a marketplace makes that much. Please educate yourself

[lacemaker3]

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@arkusaj7 wrote:

Why does eBay charge sales tax on everything now? This isn't even legal or appropriate. 

According to the law, sales tax is to be paid only a single time. Any item that is marked as Used, or Refurbished on eBay should not have taxes collected. This is simply a scam on the part of eBay. 

...

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I'm sorry, but you misunderstand the law and you are completely mistaken.

I am not aware of any state that exempts items from sales tax just because they are used. If you buy a used car, you have to pay sales tax to the state when you register it, in every state that has a sales tax  (45 out of 50 states). If you buy something at a second hand store or antique store, you pay sales tax.

If you can find a law in your state which exempts otherwise taxable items from sales tax because they are used, please post a link to the law.

I have investigated many states, and I have only found one type of item in one state which is exempt from sales tax if it is used: manufactured homes in Ohio.

https://www.tax.ohio.gov/sales_and_use/information_releases/st200102.aspx

[fuzzface50]

"According to the law, sales tax is to be paid only a single time"

Apparently the op never brought a used car. 

[eleanor*rigby]

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@arkusaj7 wrote:

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Please. People keep talking about this but have apparently never read it.

1) How many stores on eBay are making MORE than $100,000 a year from their eBay store?

Only those are subject to sales tax collection.

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eBay is assessing, collecting and remitting sales tax under the "Marketplace Facilitator" laws that have been passed by the majority of states--34, as I recall. Please read up on it.

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@arkusaj7 wrote:

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2) Only new items are subject to tax collection.

Anything used, refurbished, or even New items that were not purchased wholesale are not subject to sales tax collection.

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Do you pay sales tax when you buy a used car? Well, there goes that argument out the window. Sales tax is charged on new items, used items, handmade items, salvaged items, tangible items, intangible items. Please read up on it.

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@arkusaj7 wrote:

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3) Only STORES, with a valid tax id, under which to remit taxes, are subject to collect sales tax.

If you or I sell something ourselves, personally, even if it is new, there is no sales tax. We already paid sales tax when we bought it via a business with a tax id. 

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You are incorrect that only stores with valid tax ids are subject to collecting sales tax. You are also wrong that if you sell something yourself, there is no sales tax. In my state, if a person has more than one garage sale a year, that person is required to collect sales tax. Please read up on it.

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@arkusaj7 wrote:4) I don't need to pay sales tax to China or Canadian sellers. This is completely fabricated.

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You're not paying sales tax to China or Canada. You are paying sales tax to your own state. Please read up on it.

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@arkusaj7 wrote:

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Do NOT let them fool you into thinking that the manner in which it is being collected is not a clever way for them to charge $100 and pay $2. eBay exists because they charge people transaction fees. This is just a way to start charging the BUYER transaction fees as well as the Sellers.

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eBay is not charging fees on the sales tax portion of a transaction. Please read up on it.

I honestly have absolutely no idea where you came up with some of these ideas. They not only fail to take into account recent changes in sales tax laws across the country, but also have never been accurate.

[myangelandmyprincess]

THe thresholds under the marketplace facilitator law would apply to eBay not the individual sellers because the law makes the facilitator (eBay in this case) the one responsible   

Used items at least not not whwre I live have ever been excluded from tax.   If I go to a consignment store, a thrift store, or any other number of places that could sell used items I have always had to pay tax.  

[kensgiftshop]

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@arkusaj7 wrote:

Every user of eBay should demand that taxes taken on their orders be immediately remanded. This is simply a scam on the part of eBay, not a legitimate tax.

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Contact your State reps, they are the ones that decided to start collecting sales tax on internet purchases.

Ebay has nothing to do with it and they can only do what the law tells them to.

[7606dennis]

Actually, eBay is required by law to collect sales tax on transactions being shipped to states that have enacted marketplace facilitator laws.  Thus your claim that eBay collecting those taxes is not legal is incorrect.  Of course, not paying use tax on such transactions prior to the enactment of those laws is states that have had sales/use tax laws on the books for decades could very well be an illegal act on the part of the person not paying it called tax evasion.

Of course, there are states for which eBay isn't required to collect sales tax and if the seller isn't required to do so, the buyer would still be legally bound to pay use tax to their if their state has sales/use tax laws on the books.

[soh.maryl]

"This isn't legal or appropriate".

Well, actually in the approximately 34 states for which sales tax on online sales are being collected, the appropriate legislation has been passed by that state's legislature.  I believe this makes it legal and appropriate.

[mr_lincoln]

@arkusaj7   While I agree that tax should NEVER be charged twice on any item you mentioned that it's against the law to charge it on used items.  Can you produce the law you referenced by any chance?

[fuzzface50]

just think as of Jan. 1 lots of states added new or increased taxes and/or fees. 

Look at Il. they added 20 plus taxes and fees on Jan. 1.  One I cannot figure out is how they  collect sales tax on a car being trade in besides the one being brought.   but look at the $'s being brought in by the legal marijuana. Over 3 million the first day.

anyways getting off subject here so lets get back on track.  What I am trying to get at is there are a lot of new fees and taxes across this county some I agree with, others I don't, some I don't understand yet but for the internet sales tax, I knew it was coming and I was all for it years ago already. 

levels the playing field for us that were paying it already and it is really needed by the states to help keep up repairs if they use the money collected correctly.  Look at how many states that are in disrepair because they were lacking all those tax $'s when so many started buying off the net to avoid taxes. So many states are on verge of bankruptcy.  I just hope they can get back on their feet and fixed their roads or at least fill the potholes instead of wasting the tax $'s on something useless like a trolley that goes around in a short circle going no where because their mayor wants it.