Sales Tax
I sold two chain saws.
1. Destined to California.
2. Destined to Oregon.
Why did eBay charge sales tax on the Oregon purchase but the not the California purchase.
If anyone can clarify this.
9 comments
I sold two chain saws.
1. Destined to California.
2. Destined to Oregon.
Why did eBay charge sales tax on the Oregon purchase but the not the California purchase.
If anyone can clarify this.
heckofagame
·2 years agoOregon has no sales tax
inhawaii
·2 years agoShouldn't it be the other way around?
I thought Oregon has no sales tax while California does?
Are you sure you're not mixing the two up?
handymans.haven
OP2 years agoYou are correct I mixed them.
Thank you for the clarification. I mixed up the states. They eBay didn't charge sales tax on the Oregon order.
monica-sells
·2 years agoJust for your own "peace-of-mind"
it is of no (zero) consequence to you as to what ebay charges in sales tax....
you are not responsible for it...
you are not liable for it.....
you can not be held accountable for it......
luckythewinner
·2 years agoeBay charges a final value fee on the sales tax, so IMHO there absolutely is a consequence to the seller! 🙂
monica-sells
·2 years agomy choice of words does leave something to be desired......
the 'collection' and 'computation' of sales tax is NOT, by any means, the responsibility of the seller....
if you (as a seller) see what appears to be a discrepancy in sales tax collection, the collection and remittance of that tax is of no concern to you.,,
I was speaking ONLY to the responsibility of the collecting and remitting.....my use of the word consequences was incorrect.....
monroe67
·2 years ago"Just for your own "peace-of-mind"
it is of no (zero) consequence to you as to what ebay charges in sales tax...."
Consider these two hypothetical sales completed by the OP:
Ozzie in Oregon buys a $35.00 chain saw that was listed with free shipping. Ozzie pays a total of $35.00.
Caleb in California buys a $35.00 chain saw that was listed with free shipping. Caleb lives in an area of California that charges 10% sales tax, so in addition to $35.00 for the chain saw, Caleb pays $3.50 in sales tax. Caleb pays a total of $38.50.
Chain saws are in a category with an eBay Final Value Fee (FVF) of (a) 13.25% of the total amount of the sale plus (b) $0.30 per order.
eBay's FVFs on the sale to Ozzie will be $4.94: 13.25% of $35.00 = $4.64 + 0.30.
eBay's FVFs on the sale to Caleb will be $5.40: 13.25% of $38.50 = $5.10 + 0.30.
The OP will receive a payout from eBay that is less for the sale to Caleb than for the sale to Ozzie.
So the amount of sales tax paid by any buyer could truly be of consequence to a seller, when item prices are high and also when the items are shipped to states which impose taxes on shipping costs (e.g., Texas).
ebeths_eclectic_collectibles
·2 years agoAll this is true and interesting but really has no practical application. It is not like you are able to restrict your sales to tax favorable shipping locations.
aeparts1
·2 years agoThe California sale may have been made to a non profit that is tax exempt. Or to a reseller with a tax exempt certificate. Or hundreds of other similar reasons. You'll most likely never know.