I should not be taxed for a used item. why am I paying tax? that is why I use ebay.

[delrayboston2009]

I should not be taxed for a used item. why am I paying tax? that is why I use ebay.

[myboardid]

New laws have been passed by many states requiring the Marketplace Facilitator, meaning eBay, Amazon, Etsy, etc, to collect sales tax from buyers in their states and remit it to those states.  The states do NOT exempt used items. 

Guessing from your ID that you are in Massachusetts, their law went into effect October 1st.  That's why you haven't run into it until now.  If you are from another state, then the timing would be different. 

[mansons2005]

The state of Massachusetts is imposing a Use tax on all purchases from out of state (including international) under the new Marketplace Facilitator laws. Ther isn't much you can do about it, except:

To ensure the best results regarding taxes, eBay recommends the following:

Make sure your shipping zip code includes the +4 so eBay calculates the correct rate. Otherwise they default to the highest rate in the general area(The 5 digit zip code may encompass overlaps within a city or county).

The taxable status of an item is based on the first category the item is listed in. For example, if you purchase shorts listed in sporting goods instead of clothing then tax will be charged even in clothing exempt tax states.

[monroe67]

 Why are you paying tax on an eBay purchase?  Because your state's taxing authority requires it.

eBay Buyers really need to learn this and get used to it.  

In my listings (using a different eBay ID), I'm going to start adding an additional sentence about the possibility of sales tax being added to the total price the buyer will need to pay, depending on which US state they live in, so they can't (try to) blame me for "overcharging."  

I've also sold to a number of overseas buyers who use the services of a forwarding shipper.  Meaning I send the item to an address in the United States, but the buyer's communication is in the Cyrillic alphabet or has an ".ru" suffix on an email address, so I can be pretty sure the buyer does not actually live in the US.  Those buyers may be charged sales tax in the state where their forwarding service is located, if those states have adopted laws on taxation of internet purchases.   

There are only two certainties in life:  death and taxes.  

[myboardid]

Yes, I have already added information to my listings telling buyers that eBay may  add sales tax if their state requires it. 

[southern*sweet*tea]

This just makes things easier for you. Now you won't have to save up receipts and tally them up when you do your annual state income tax...you know...where you enter the amount of out of state purchases made so you can remit the sales tax you owe to your state.

You were doing that, right?

[7606dennis]

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@delrayboston2009 wrote:

I should not be taxed for a used item. why am I paying tax? that is why I use ebay.

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You are being taxed on the purchase of a used item because your state deems used items to be taxable.  Many antique collectors and the purchasers of used vehicles would love it if the state did not, I'm sure.

The reason that you are being charged tax is that your state has levied sales/use tax on the purchases of their residents.  I'm not sure how many decades ago your state has done this but it has undoubtedly been quite a while back.  Of course, they have recently enacted legislation to make sites like eBay, Amazon and others responsible for collecting this tax.  Most likely because many of its citizens were not paying it.  Anyway, this is not a new tax, but merely a change in how it is collected from you the buyer.

I'm sorry to have to tell you this, but if the reason that you use eBay is because you thought that you didn't have to pay sales/use tax, you are mistaken.  Taxes are owed by the buyer on all purchases of items where the delivery of the item takes place within the borders of your state.  Buyers were responsible for paying this tax regardless of where the sale originated or whether it was collected by the seller at the time of purchase (sales tax) or paid directly to the state by the buyer (use tax).  If, as your statement seems to imply, you have not been paying these taxes in the past, you are probably guilty of tax evasion by not paying them as required by your state's laws.  Of course, the recently pasted marketplace facilitator laws of many states have eliminated the need for you to remit your use tax payment to your state yourself and brought many that have not been doing it back to being law abiding citizens again.  At least, when it comes to the paying of sales/use tax.

[fuzzface50]

I use ebay to find items that I cannot get locally.

[the*dog*ate*my*tablecloth]

I live in MA and there has been a use tax on the books for years. I guess I was some kind of stupid person for paying lawful taxes all these years. I never knew there were so many tax avoiders

[7606dennis]

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@the*dog*ate*my*tablecloth wrote:

I live in MA and there has been a use tax on the books for years. I guess I was some kind of stupid person for paying lawful taxes all these years. I never knew there were so many tax avoiders

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I don't think that you're any kind of stupid, Dog.  You belong to that somewhat rare breed like myself, called law abiding citizens.

[oaklandmaryland]

You pay tax every time a house is sold and most houses are preowned.

[ssgs414]

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@oaklandmaryland wrote:
You pay tax every time a house is sold and most houses are preowned.

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That’s different kind of tax, sales tax is not charged on real property, homes and land.

[kensgiftshop]

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@delrayboston2009 wrote:

I should not be taxed for a used item. why am I paying tax? that is why I use ebay.

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The sales tax is on the transaction, doesn't matter if the item is new or used.