Charged sales tax on digitally delivered event tickets. Class action lawsuit inclusion request.
I bought tickets for $455. When I go to pay with the eBay PayPal link they add $27.30 sales tax to the state of Michigan. These are not physical tickets as they are delivered digitally through SeatGeek. No other ticket reselling service charges sales tax so it seems like a clear scam/mistake. Anytime eBay is charging a fee that Ticketmaster doesn’t charge you know things are messed up.
Additionally, when you list tickets for sale on eBay they only allow traditional shipping methods and do not offer the option of email transfer. I believe this is to make them seem like physical items that should be subject to sales tax.
When the inevitable class action lawsuit is filed to recoup these bogus sales tax charges please remember to include me in the settlement. Thanks in advance.
janet9988
·2 years agoSince the seller listed incorrectly to get around ebay policy.........
File an item not received claim on ebay as the seller is required to physically send the item.
mudshark61369
·2 years ago@rosekrans,
You do not seem to understand you bought the tickets directly from a private seller, who has violated SeatGeek's rules, by listing tickets held by a Reseller. Had you bought directly from SG, you would not have been taxed. You should report the sale to seatgeek.
rosekrans
OP2 years agoIt is not the buyer’s responsibility to determine who is allowed to sell tickets. 100% of all nfl tickets are digitally transferred, so by that logic, eBay should not allow listings of any nfl tickets.
kathiec
·2 years agoPer their rules they don't, except by sellers who are preapproved to sell digitally delivered items.
mudshark61369
·2 years ago@rosekrans,
If the tickets you bought were from an individual ebay seller whose tickets are being held by seatgeek, they would be subject to a Mi. sales tax. Seat Geek discourages the sale of tickets on other market places and doing so actually violates their policies.
Do a search for "Can I list tickets for sale on geekseat and other sites".
"Additionally, when you list tickets for sale on eBay they only allow traditional shipping methods and do not offer the option of email transfer. I believe this is to make them seem like physical items that should be subject to sales tax".
eBay does not make up tax laws. They can only follow the tax code of a buyers state. If the seller listed a shipping service on the listing for the tickets, they stopped being covered by Michigan's digitally delivered items tax exemption.
https://www.ebay.com/help/policies/prohibited-restricted-items/digitally-delivered-goods-policy?id=4289
rosekrans
OP2 years agoYour statement “If the seller listed a shipping service on the listing for the tickets, they stopped being covered by Michigan's digitally delivered items tax exemption.†Is exactly my complaint. When you list event tickets for sale on eBay, only traditional shipping services such as USPS are offered. Forcing this situation into existence.
maxine*j
·2 years agoWhy wait for someone else? Spend your own dime and your own time bringing the suit. As lead plaintiff, you will get the lion's share of the settlement. So pick up the phone and make an appointment with an attorney. Nine times out of ten, the initial consultation will be free and the lawyer will work, largely, on contingency.
When you have the first appointment, be sure to show the lawyer the eBay User Agreement, Section 18, "Legal Disputes."
And, by the way, I don't know what state you live in, but here's a state-by-state rundown of sales tax (if any) charged on digitally delivered goods:
https://modventuresllc.com/do-you-need-to-charge-sales-tax-on-digital-products/
-
1786davycrockett
·2 years ago"When the inevitable class action lawsuit is filed. . ."
The sun will be rising in the west -- pigs will sprout wings and fly -- and eBay will drop Final Value Fees on all sales.
kathiec
·2 years agoEBay's prohibition on digital delivery of tickets has nothing to do with "mak[ing] them seem like physical items" and everything to do with their Electronically Delivered Items policy, which applies to all items not just tickets. It restricts listings for electronically delivered goods to sellers who have been pre-approved by eBay. Here's the full policy:
www.ebay.com/help/policies/prohibited-restricted-items/digitally-delivered-goods-policy?id=4289
monica-sells
·2 years agohmmm...
"...The Tax Appeals Commission determined online ticket marketplace StubHub is responsible for collecting and remitting sales tax on secondary tickets for events held in the state..."
Now, this is for 'secondary' sales...not sure if it is for primary (original) sales....
jameshen1
·2 years agoIf I see anyone start a class action lawsuit for this, you can be sure we will ask them to include you. I am sure one will be started at any minute now. 🙄
And holding your breath while waiting to be added isn’t recommended.
mtgraves7984
·2 years agoSeveral states charge sales tax on digitally-delivered goods. I don't know if there are caveats on event tix... 🤔