"First of all, tax status is based on the shipping location, not the seller’s location."
eBay is fully aware of this fact and law.
"eBay uses the general categories for determining tax. Meaning that a clothing article listed in the collectibles section will still get taxed. So the item must be listed in the clothing section."
eBay sellers are responsible for choosing the category in which they will list their items. eBay itself has no responsibility to double check and re-categorize listings if they are, somehow, "wrong."
You are correct, though, in stating that Items listed in eBay's clothing category (not "section"), when purchased and then delivered to a state that does not charge sales tax on clothing, will not incur sales taxes.
"I can confirm that multiple times now I have purchased clothing or shoes in this section and have been wrongfully taxed. The items, for example, were men’s shorts and men’s shoes. I am speculating that because the company brand that I bought also makes other sporting/misc. items, they are incorrectly labeling the clothing as something else even though they are in the clothing category."
"They"? Who are "they"? eBay?
As stated previously, eBay sellers choose the category in which they list their items. On eBay, items listed as clothing will not be subject to sales tax when they are delivered to a state that does not apply sales tax to purchases of clothing. All eBay sellers must take full responsibility for their own listings.
"No use in trying to get it corrected as customer service won’t help. It’s an error in their algorithm that apparently can never be changed."
I wouldn't call this an error in eBay's algorithm -- because it is not. eBay must rely on the truth and accuracy in each one of the millions of listings posted by the millions of eBay sellers.
As for eBay changing how and when they apply sales taxes, if and when any of the 50 United States (and territories, protectorates, etc.) change their laws about sales taxes, then eBay will change their programming on sales taxes to comply with those laws.
I suggest to you that if you want to purchase an item of clothing on eBay and you do not want to pay sales taxes on it, you must make sure the listing is in a Clothing category.
If you still truly believe you were over-charged sales taxes, your state may have a way of requesting a refund from your state's treasury or taxing authority.
