How is Buyer's Sales Tax Calculated, For Example Pinellas County, Florida

[scbroncrider417]

Title asks the question. Say I pay $200 for an item. What would be my total amount of payment?? I've read conflicting amounts from various sources. Thanks for any information provided.

[buyselljack2016]

tax collection is generally based on the zip + 4 delivery location provided to pinpoint all applicable taxation %ages.

Some states just on the the item cost. Some on the entire transaction amount. 

[nobody*s_perfect]

It's calculated the same way it would be if you went up the street and bought the item at Walmart: Whatever percentage you'd be charged at your local Walmart is what eBay will charge you.  

Florida is one of the states that applies sales tax to the whole purchase cost including shipping, so the percentage is applied to the whole cost ($200 plus the shipping cost, if it's not free).  Google says that the tax rate in Pinellas is 7% so if you paid $200 plus $10 shipping, the tax would be $210 x .07 = $14.70 for a total payment of $224.70.

[slippinjimmy]

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@scbroncrider417 wrote:

Title asks the question. Say I pay $200 for an item. What would be my total amount of payment?? I've read conflicting amounts from various sources. Thanks for any information provided.

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You pay the standard Sales Tax rate for your delivery location, I assume you know what that rate is.

[stainlessenginecovers]

Each of the 3600+ counties in the USA have 'different' rates and exemptions. Some 'exemptions' or 'charging on total including shipping' is a Statewide thing etc.

Best to google your 'state sales tax' entity and you can read what your state charges on for each area/county etc. Example: part of Pennsylvania has over 500 'various' exemptions- some are almost impossible for a place like this to 'figure out' by zip code etc. 

[scbroncrider417]

Yes I know what the sales tax percentage is. Which brings up a couple more questions from previous responses. 1. Why would I be charged sales tax on something intangible (shipping cost). 2. Why would I be charged sales tax on a "used item" anyway. I mean the original buyer paid the required sales tax when he/she bought the item. Wouldn't that be double taxation??

[tobaccocardyahoo]

Depends on the specific state's marketplace tax laws. Some states simplify the rates from their location based sales tax rates.

You will need to the Florida Revenue Department for details.

[stainlessenginecovers]

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@scbroncrider417 wrote:

Yes I know what the sales tax percentage is. Which brings up a couple more questions from previous responses. 1. Why would I be charged sales tax on something intangible (shipping cost). 2. Why would I be charged sales tax on a "used item" anyway. I mean the original buyer paid the required sales tax when he/she bought the item. Wouldn't that be double taxation??

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Shipping cost is NOT an 'intangible'; it is a COST for you to buy from a distance. 

The 'sales' tax is really a 'transaction' tax...so, when Mary buys it, she pays 'Tax' and when Fred buys if from Mary, he is SUPPOSE to pay that same tax (report it/remit it).

Think Thrift Stores, Mandated Resale Licenses to Collect 'Tax' at Swap Meets, Used Cars (either Dealers or Private (for most) etc. Most ALL of those charge 'tax'.

In reality, States already allow additional taxes in your Car Registration, Gasoline, Tobacco, Alcohol,Utilities etc. and MANY of those are then TAXED for the Transaction at the Grocery Store (Tobacco, Alcohol)

Bottom line; you have to take up what you don't like about taxes with YOUR state, because YOUR state mandated all the 3rd Party Selling Entities to 'charge and remit 'sales (tansaction) tax back to YOUR state. 

Almost ALL websites do it (Walmart, Amazon, Lowes, HomeDepot, Kohls, Macy's etc etc.) 

[soh.maryl]

You need to think of the state sales tax as a "transaction tax".

When you buy a used vehicle in your state, do you not pay a sales tax?

When you shop at a GW, SA or other thrift store in your state, do you not pay a sales tax?

Some states require that a buyer be charged state sales tax on the shipping cost and some do not.  It's not an eBay decision.  

[monroe67]

"1. Why would I be charged sales tax on something intangible (shipping cost)."

You would be charged the sales tax percentage on shipping costs when your  state's legislature has decided that taxes on shipping costs are required.  eBay simply follows those laws.  

"2. Why would I be charged sales tax on a "used item" anyway. I mean the original buyer paid the required sales tax when he/she bought the item. Wouldn't that be double taxation??"

The tax is on the amount of the transaction, not on the degree of newness, oldness, or used-ness of any item.

You are charged sales taxes on "used item[s]", again, when your  state's legislature has decided that those sales taxes are required.  eBay simply follows those laws.  

Like the other 44 states that impose state-wide sales taxes, Florida (probably) added statutes to their already-existing tax laws that pertain to purchases made on on-line platforms, such as eBay.  And those states were essentially required to add to their tax laws as a result of the US Supreme Court's decision in the case of South Dakota v Wayfair, Inc., in June of 2018.   

[buyselljack2016]

and to be noted...............   Florida was among the last to start the collection of sales taxes on interstate purchases from sellers such as myself.  For a long time after the 2018 Supreme Court decision my Florida buyers were spared from the extra charges. ( I was spared the sales tax FVF on them as well 🤗) ( the good old days)

[penguins_dont_fly]

@scbroncrider417 

Florida State Sales Tax is 6%

Pinellas County Sales Tax is 1%

So, minimum tax would be 7%

There may be additional city/special district Sales Tax due, depending on where exactly the item is being shipped to. Your Zip+4 will determine how much it would be.

For example, Oldsmar tacks on another 0.5% for a Total of 7.5%

[tobaccocardyahoo]

Some states specifically charge sales tax on shipping, some do not.

Ebay follows the rules of the destination state.

Used items are tax because the state wants to collect more money.

[scbroncrider417]

There's no tax on a used car sale. You pay the tax at the DMV in the form of "Highway Use Tax" or something to that effect. 

And take, for example, getting a new set of tires on you truck. You pay tax on the new tires, but you don't pay tax on the labor to install them. Or a mechanic's bill. Taxable parts, but no taxable labor.

Correct me if I'm wrong, please.

[scbroncrider417]

I worked in Oldsmar for a short while (Engineering contractor) and never could figure out the taxation.

This explains it!! Thanks!