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Sale Tax
Where I live sales tax is 7.5%, but on my last two purchases I was charged 20% and 10% sales tax. Both sellers are located in the USA. What is going on?
7 comments
comics-scifi-collectibles
Mentor2 years ago@winswa Sales tax is charged by the state the item is delivered to. Keep in mind that most states charge sales tax on the item price AND the shipping. Maybe that is why the sales tax seems off?
winswa
OP2 years agoThat lowers the tax rate on one purchase, but I am still paying over 10%. Two recent purchases for around $5 and I am paying $0.65 cents tax. It’s not a lot on a single purchase of low cost, but something doesn’t seem right. On a higher cost item it will more, and what if ebay is doing this in tens of millions of purchases?
comics-scifi-collectibles
Mentor2 years ago@winswa Do you have the plus 4 on your zip code in account settings? That can make a difference in the sales tax as you have state and local sales tax.
You can check that here> https://accountsettings.ebay.com/uas/addresses
If you don't have the plus 4 part of the zip then you can look it here>
https://tools.usps.com/go/ZipLookupAction_input
Copy your address exactly as it shows on the USPS web site
winswa
OP2 years agoThanks for the heads up. That could be the issue.
shipscript
·2 years ago@winswa
Looking at your items for sale, one is in Oregon (did you move and forget to update that one?) and the other one is in Denver. Denver has a tax rate of 8.81%. Colorado also has a tack-on "fee".
https://www.ebay.com/help/buying/paying-items/paying-tax-ebay-purchases?id=4771
Colorado retail delivery fee
eBay, as a marketplace facilitator, is required to collect the Colorado retail delivery fee when taxable goods are shipped into the state of Colorado. This retail delivery fee is $0.28 applied to each sale. More information about the Colorado retail delivery fee can be found on the Colorado Retail Delivery Fee site.
winswa
OP2 years agoThat’s another mystery. Items I sell still say from Oregon, but my profile address is in Colorado. I live in a zip code shared with Denver, which has a lower tax rate, so I believe adding the four to the postal code should fix my buyer tax rate.
shipscript
·2 years agoEdit your listing to change its item location. Also edit all of your account's auxiliary addresses to ADD your new ship-from location, etc, and then delete the old ones.
https://accountsettings.ebay.com/uas/addresses