Tax on shipping

[larralbritto_0]

 Okay when i buy off ebay from someone i may know that don't do drop shipping, Like a personal pocket knife and Ships First Class USPS, Why am i paying tax on my shipping charge? Like if i buy a knife for 50 dollars and has 8 dollars shipping, why am i paying tax on 58.00 dollars instead of tax on 50.00 dollars, i have purchase several items and if it has shipping charge i pay., But free shipping i don't, i buy from a lot of people and Ebay is the only one that does that, everybody else does item then tax as sub total then add shipping, please someone tell me, why and who gets the money, Thanks

[wooden_flower]

Every vendor that collects sales tax in your state should be charging it on the shipping, if eBay is charging tax on the shipping. 

Your state sets the rules for what is taxable, all vendors should comply with those laws.  Your state gets all tax revenue collected by eBay for deliveries in your state.

[inceptions]

Most states require sales tax to be charged on shipping. Read here:

https://www.taxjar.com/sales-tax/sales-tax-and-shipping

(You don't pay tax on shipping when the shipping is free because there is no amount to tax - shipping is already embedded in the item price.)

[woodland_gnome]

Even for those states that generally don't include a separately stated  shipping fee that the buyer pays in the sales tax calculation, there are often exceptions, and those exceptions tend to cover the circumstances of most eBay transactions:  the item is not available without paying the fee, the fee covers "handling", etc.