01-29-2020 11:25 AM
E Bay collects a 9% sales tax when I buy something. No big deal same in the stores. But add shipping cost to that and I'm being priced out of the market especially on high priced items. I always figured the shipping cost was kind of like a sales tax. Some sites only collect State sales tax I think but E Bay seems to collect State, County and city. Less buying on E Bay now.
01-29-2020 11:33 AM
Your state (and possibly county and city) have been losing the taxes they need to run schools, police and fire services, courts, roads and infrastructure for most of the century.
Finally the Supreme Court allowed the states to collect the money they need to serve their citizens.
If it is cheaper locally, buy it locally. If it is only available online, buy it online.
These taxes are not just being collected for your State by eBay but by Amazon, PoshMark, etsy, AliBaba, WalMart, Nordstrom, etc.
Shipping fees have always gone to the shipping service- USPS , FedEx, DHL, UPS, etc. You might have thought of them as a tax, but they are not.
01-29-2020 02:12 PM
Most States with sales tax also have a use tax on the books that you were supposed to pay on anything you purchased from out of state. There’s likely a line on your State tax return for it. Since so many people didn’t pay the tax they owed, the government had to change the way it collects,
in other words the tax is not new, only the collection method.
01-29-2020 06:47 PM - edited 01-29-2020 06:48 PM
I use the coupons eBay sends my buying accounts. I use the coupons they send my selling accounts. Other than that, I do not buy on eBay.
When everyone in a transaction is benefitting but me I choose to make different choices. Everyone else can buy. I'll save my money. Or jack my truck up another inch.
01-29-2020 08:25 PM
01-29-2020 10:43 PM
@1944agv wrote:E Bay collects a 9% sales tax when I buy something. No big deal same in the stores. But add shipping cost to that and I'm being priced out of the market especially on high priced items. I always figured the shipping cost was kind of like a sales tax. Some sites only collect State sales tax I think but E Bay seems to collect State, County and city. Less buying on E Bay now.
If the tax rate in your area is 9% that is what you would have to pay if purchased from a local merchant's B&M store. Of course, if you had to have it shipped to you, you would still have to pay the 9% sales tax to the merchant or directly to your state in the form of use tax. In the case of having it shipped to you, you would also have to pay the shipping, just like on eBay, unless the merchant offer's free shipping. So what would be the difference?
Of course, it is up to your state if you have to pay sales tax on the shipping. Some state's deem it taxable and some do not.
01-30-2020 02:44 AM
"But add shipping cost to that and I'm being priced out of the market especially on high priced items".
You have always paid shipping cost on items, it is built into the price. There never has or will be such a thing as Free Shipping. Often what was being charged for Free Shipping was more than was being charged to the seller as well. Every year in the week before Black Friday there are short segments on the local news about the hidden costs w/ free shipping, saying that many items online buyers often pay up to 30% more for items that have free shipping since the sellers charge buyers the retail rate postage rate, but pay online bulk rate shipping.
"Some sites only collect State sales tax I think but E Bay seems to collect State, County and city".
Some states allow counties and municipalities to add their own tax to the state tax rate. If you live in a state that does, but not in an area that adds a tax, if you do not use a +4 zip code you can be charged the highest rate in the State.
01-30-2020 04:12 AM
01-30-2020 06:02 AM
If the state sales tax in your state (and the city and/or county sales tax) adds up to 9% for you, not sure why you would feel that this is eBay's fault.
The state sales tax is set by a department of your state. Any complaints should be directed to the state.
Have to add: just as the cost of gas, food, medical care etc has increased over the years, so has the cost to the state, city or county to provide services to you like road maintenance, schools etc.