Ebay incorrectly / fraudulently (?) charging sales tax on Gold & Silver bullion to Ohio residence

[yackman1353]

Ebay has been incorrectly charging Ohio sales tax to Ohio purchasers of gold and silver coins and bullion for years. Ohio removed the sales tax on such items several years ago, but Ebay never changed / removed their tax rate. The tax is automatically applied so sellers have no choice but to charge it and can not remove it. I have informed Ebay several times about this, and have been told it will be corrected, but after almost a year with no feedback, changes or overcharged tax refunded, Ebay clearly is doing nothing. Since Ebay knows about this issue, and continues to do it, is this now considered fraud? Also, we're is all the overcharge tax money going??? Thoughts / comments anyone?

[kensgiftshop]

All the sales tax money they collect, goes to the state they collect it for.

[monroe67]

From my perspective, eBay does a very good job of keeping up with all the states' laws about sales taxation.

Last month, my selling ID sold the last of her (dec'd) brother's collection of NGC-graded and encapsulated silver dollar coins, here on eBay.  The buyer was in Minnesota (ooops) Michigan.  That buyer did not pay sales tax on that transaction.  

Usually when errors in sales taxation happen on eBay, the problem is with the eBay Item Category that the seller lists the item in.  

My selling ID made sure that her silver dollar coin was listed in the Bullion category.  

Your seller might not have been so careful.  Your seller might have listed your purchases in simply a Collectibles category.  Take a look at the listing that you purchased that you think was incorrectly taxed.  What does the eBay category show?  

"Is this considered fraud [committed by eBay]?"  No.  eBay relies on sellers to list their items correctly with accurate photos and descriptions -- and in the proper category.  

"[Whe]re is all the overcharge tax money going???"  It will go to the State Treasury of Ohio, just like on all other sales-taxable purchases made by buyers whose purchases are delivered to Ohio.  

How much was the sales tax you paid "incorrectly"?  Do you think the State of Ohio will use that tax money appropriately?  You could just let Ohio keep that sales tax OR you might see if there's a way to get the money back from your state's taxing authority.  

[mudshark61369]

@yackman1353 

The last reply is spot on, ebay does do a good job of keeping up with tax changes when informed by a state's treasury dept.  However if the seller lists those and other tax exempt items using the wrong category, they can't do anything without it. 

However, if you back as far as you can through your purchases order histories and get the invoices and file for tax deductions on what you were incorrectly charged.  You can request an invoice history from ebay by going to your Account > Settings > Request your ebay data. 

You can get information from PayPal as well. 

[monica-sells]

You want thoughts and comments....

comments:

If you are in our great state of ohio, you should not be charged sales tax for tax exempt items...

(since late 2021 or so i think)

if the item you are buying is in the proper category, you are probably not being charged sales tax.

that is incumbent on the seller to categorize the item properly.. ebay has no way to discern the item if it is in the wrong category, since the algorithm exempts sales by category, not by description.

thoughts:

If it is an amount that bothers you terribly (which it appears by the tone of your post it does) you can simply petition the state for a refund of erroneously charged sales tax by filling out a form. 

opinion:

My experience is that most Large Dealers are in the proper category...it's the smaller and inexperienced sellers, or sellers trying to overthing placement, that are in the wrong categories causing your grief.....

[gosimus]

@yackman1353 

< Ebay has been incorrectly charging Ohio sales tax to Ohio purchasers of gold and silver coins and bullion >  

One of the "Labels" that you stuck on your original post is Collectibles.  Does that mean that the seller you buy from has been listing bullion in the Collectibles category? 

[givemelbrty]

This just happened to me with a coin sale being taxed shipping to tax-free Texas.. I'm going to guess these bullion tax issues are related to this..

According to the latest ebay category structure (https://ir.ebaystatic.com/pictures/aw/pics/categorychanges/2023/US_New_Structure_May2023.pdf) .. "Collectibles & Art" has been replaced by separate "Art" and "Collectibles" categories. .. "Coins & Paper Money" is now its own main category and should be used going forward. .. Yet, in actual practice, it appears to still allow sellers to use the old (and taxable) "Collectibles & Art" -> "Coins & Paper Money" structure.

[oldcal]

If a Seller makes an error and lists in a wrong category, eBay should recognize this and NOT charge undue Sales Tax. PERIOD.

[mudshark61369]

@yackman1353.,

"If a Seller makes an error and lists in a wrong category, eBay should recognize this and NOT charge undue Sales Tax".

With millions of new items being posted daily from around the world, do you have any idea of how many people it would take to verify each and every one of the items are posted in the correct categories?  You do realize that each state has different tax exempt laws, some exempt clothing, medical devices, industrial equipment... etc., besides gold & bullion. So those people would have to know each states tax exemption rules.

  Buyers can look up their own state's exemption rules to see if an item is properly categorized.  If you see gold/silver coins listed as collectibles not in the Gold/Bullion category, don't buy from the seller, or message them to let them know that listing them under collectibles means the buyer will pay a sales tax, on an item that should be exempt.  If a buyer does pay a tax on an exempt item, they can save the order details and file for a deduction on their state taxes.  

[kalyoth]

As others have stated - ebay reacts to what others list & select for a sales category. They are mandated to collect tax. That mandate is based upon what a private seller presents & classifies for sale. If the seller chooses to classify their goods as X, they get taxed based upon being X. ebay is not the private seller, selling the goods nor establishing the taxable basis.

As a buyer, you have options: 1) follow advice presented & obtain invoicing for the goods, present them to your state dept. of revenue & file for a refund of tax 2) be more aware prior to committing to purchase an item & fully understand the implications of your purchase 3) go to a true dealer in the goods you are seeking & stop seeking deals in a flea market.