ebay charging sales tax on US coins sent to FL as of 7/1/21 when exempt from FL Sales Tax

[zinman2]

Has anyone been able to get through to ebay to let them know they should not be charging sales tax on US coins sent to FL.  I was charged 7%  on a sale of a US quarter likely due to to FL new law that went into effect on 7/1/21 on online sales being subject to sales tax, but US coins are specifically exempt from FL sales tax per FL Dept of Revenue TIP 99A01-13 DATE ISSUED: Jun 30, 1999 to confirm.  That exclusion was not changed by the new law.  Called a local coin dealer to confirm that sales taxes are still not collected on US coins.  I want my money back and I don't want to deal with it on other purchases.  They need to fix their mistake NOW!

[house*of*paws]

Hi @zinman2 

The laws governing the collection of tax on internet sales are not the same as those governing local sales tax.   Your local coin dealer may not be familiar with 'Marketplace Facilitator Tax' laws, which are the ones telling eBay what to tax.

[zinman2]

I got a refund from yesterday's purchase, so I think it is still excluded online, but I can not say for sure if the new law does not cover existing exclusions.  Sounded like they were aware of the issue and intent on addressing it. It will be interesting to see what they do going forward.  I am hoping it was a first day implementation issue that tweaks will take care of.

[shipscript]

@zinman2 

Indeed, many other states went through this same coin ordeal the first few days, and sometimes weeks, after implementation of the internet tax.  And yes, they'll sort it out after getting complaints that bring it to their attention.  I'm amazed you received a refund without having to actually request one. That is swift progress indeed. 🙂

[zinman2 · Accepted solution]

Here is an excerpt of the new Florida law on online sales tax from p.13 of the entire law with a link below.

(j)1. Notwithstanding any other provision of this chapter, there is hereby
levied a tax on the sale, use, consumption, or storage for use in this state of
any coin or currency, whether in circulation or not, when such coin or
currency:
a. Is not legal tender;
b. If legal tender, is sold, exchanged, or traded at a rate in excess of its
face value; or
c. Is sold, exchanged, or traded at a rate based on its precious metal
content.
2. Such tax shall be at a rate of 6 percent of the price at which the coin or
currency is sold, exchanged, or traded, except that, with respect to a coin or
currency which is legal tender of the United States and which is sold,
exchanged, or traded, such tax shall not be levied.
3. There are exempt from this tax exchanges of coins or currency which
are in general circulation in, and legal tender of, one nation for coins or
currency which are in general circulation in, and legal tender of, another
nation when exchanged solely for use as legal tender and at an exchange rate
based on the relative value of each as a medium of exchange.
4. With respect to any transaction that involves the sale of coins or
currency taxable under this paragraph in which the taxable amount
represented by the sale of such coins or currency exceeds $500, the entire
amount represented by the sale of such coins or currency is exempt from the
tax imposed under this paragraph. The dealer must maintain proper
documentation, as prescribed by rule of the department, to identify that
portion of a transaction which involves the sale of coins or currency and is
exempt under this subparagraph.

template 1..47 (flrules.org)

Based on bolded portion, pretty clear the online sales tax DOES NOT APPLY to coins which are US Legal Tender, just as the local sales tax law.

[zinman2]

I was promised a refund with 7 days after chatting with a third person from ebay.  eBay makes is SOOO difficult to communicate with them on an issue like this. They sent me a transcript, so at least I have proof.  I checked on tax this morning through a low priced Buy It Now in checkout, but tax still shows up.  I just posted the pertinent section of the new FL law that makes it clear the new online sales tax should NOT be collected on coins that are US Legal Tender.  I will follow up with them again if it is not corrected soon, and will avoid buying more expensive coins in the meantime.