what happens to Tax eBay collects for non-taxable Items (ie, Fruit Trees) and how are they refunded?

[georgesjungle]

A Minnesota customer complained that tax was charged on wind-break trees. I could't refund it cause I didn't collect it, eBay did. It was listed as 'FEE' on the paypal transaction. I notice all automatic tax collections on Paypal are just listed as FEE, actually. (How come?)

In California, all edible herbs, vegetables, and edible fruiting trees (and their seeds) are exempt from state tax (regardless whether from online or brick-mortar) so wonder how that will be accomodated for when eBay starts collecting tax automatically too, in October 1?

The last thing need is more customers claiming seller charged tax for non-taxables erroneously, when it is ebay's system that is.

[orangehound]

Send your customer this link:

https://www.revenue.state.mn.us/refund-requests-sales-and-use-tax

[mansons2005]

I would caution those that question taxes collected on "non-taxable" items to ensure that they are a actually non-taxable when purchased on the internet. I know that when Illinois tax goes into effect it will apply to ALL items purchased on-line and the the shipping will be taxed as well.  Items usually exempt in a local shop will not be exempt when purchased on-line.

[reallynicestamps]

Do you have some paperwork to back that up?

Usually the taxpayer can appeal and get the wrongly collected money back, although few do since the time it takes is more "expensive" than the money lost.

We saw it in our B&M with diplomats (we were in a capital city, lots of diplomats) and status Indians living on reserve (way complicated).

Unless the sale was over $1000, the non-taxpayer would just add the receipt to their collection and get the rebate all at once. A girlfriend who was Mohawk showed me her forms once.

If it was higher, we were more willing to do the paperwork for the customer.

[mansons2005]

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@reallynicestamps wrote:

Do you have some paperwork to back that up?

Usually the taxpayer can appeal and get the wrongly collected money back, although few do since the time it takes is more "expensive" than the money lost.

We saw it in our B&M with diplomats (we were in a capital city, lots of diplomats) and status Indians living on reserve (way complicated).

Unless the sale was over $1000, the non-taxpayer would just add the receipt to their collection and get the rebate all at once. A girlfriend who was Mohawk showed me her forms once.

If it was higher, we were more willing to do the paperwork for the customer.

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I found the information on the Illinois Dept. of Revenue web-site - which I did not save unfortunately!

"Usually the taxpayer can appeal and get the wrongly collected money back, although few do since the time it takes is more "expensive" than the money lost."

And with all due respect, what "usually" happens or formerly happened does not apply when new laws are promulgated or newly enacted, or when they are changed and/or amended.