eBay over charging sales tax rates, no way to contact them to inquire about it.

Question

The tax rate for my county and state is 6.4 to 6.9 % is higher in Savannah, MO city limits, like 9.1 %. I do not live in the city limits. ebay charges 10-11 % on purchases shipped to my address. Where do they get their information on the tax rates that they apply? Where is the excess revenue going? What gives them the authority to charge in excess of the actual rate?

hed4163 · Answer

Thanks for your reply, but shipping charges have no bearing on sales tax rates. Yes rates vary in any zip code according to location. In the city limits of the county seat being one of them. Usually ebay charges the correct rate, but occasionally they over charge, especially on larger sales amounts. An example being a recent transaction was $441.89 for product, 0 shipping, tax $45.24 that works out to 10.24%. Even using the highest rate in the zip code it would have been less than 10%. Just trying to get a handle on it and I am really more upset with ebay's menu system of contacting them. If your complaint doesn't fit in one of a few categories, there is no way to get to an actual person to discuss it.

eburtonlab · Answer

Are you taking into consideration shipping charges when you calculate your tax rate? Does your zip code cover more than one rate? If so, try using the full zip plus four.