eBay collected Denver, Colorado sales tax too high

Question

Today on 3 auctions won by a buyer in Denver, Colorado and paid for separately, eBay charged a sales tax that was twice as high as it should have been. The sales tax rate for Denver is 8.81%. One example, the order totaling $2.62 was charged a sales tax of $.47, but $2.62 x 0.0881 = $.23.

valueaddedresource · Accepted Answer

@somanypostcards wrote:Today on 3 auctions won by a buyer in Denver, Colorado and paid for separately, eBay charged a sales tax that was twice as high as it should have been. The sales tax rate for Denver is 8.81%. One example, the order totaling $2.62 was charged a sales tax of $.47, but $2.62 x 0.0881 = $.23.@somanypostcards in July 2022, Colorado enacted a "retail delivery fee" of $0.27 for each sale on top of sales tax - my guess is that may be at least part of what you are seeing here. http...

kh-shakhib · Answer

Hi everyone, Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread if you wish to continue to discuss this topic. Thank you for understanding.

ms.rodriguez* · Answer

This is a battle for the buyer to fight his state. Like the others posted, many states charge a tax on the shipping fee. As a seller, I would tell the buyer sorry but if they do not want to pay sales taxes, they need to buy at yard sales. You can not avoid sales tax in nearly all 50 states.

soh.maryl · Answer

Hesitate to remind a seller of this, but, in addition to that retail sales rate, the state sales tax might have also been charged on the shipping fee. Some states do that, some don't.

monica-sells · Answer

in addition to the "add-on" tax, there are varying sales tax rates within the Denver Zip Codes...

for example:

The estimated 2023 sales tax rate for 80216 is 8.81%

The estimated 2023 sales tax rate for 80221 is 4.75%

What city is area code 80221?

80221, Denver, CO Zip Code Map - MapQuest.

Source: Avalara