There is no sales tax on clothing in NJ. Why am I being charged sales tax?

[dave1442397]

I just purchased an item of clothing, and was charged $9.04 in sales tax. There is no sales tax on clothing in New Jersey. How do I get my money back?

Order total:
Price	$121.50
Shipping	$14.90
Sales tax	$9.04
Total charged to    x -5625	$145.44

[kare-bearb]

Whether or not sales tax is charged is based on the category in which the item was listed.

NJ residents get hit with a sales tax charge for clothing listed in the 

Collectibles or Sporting Goods categories, for example.

[7606dennis]

I believe that there is some issue of the category items are listed in.  If you were incorrectly charged sales tax you should be able to get it refunded through your state's department of revenue. 

[dave1442397]

I guess I can just dispute the charge with my credit card company. I wouldn't have a clue how to get sales tax back from the state. 

[buy_more_anything]

Many countries and jurisdictions around the world apply some sort of tax on consumer purchases, including items bought on eBay. Whether the tax is included in the listing price, added at checkout, charged at the border, or paid directly by the buyer depends on the seller's status, the order price, the item's location, and your shipping address.

When you buy an item, taxes may be applicable to your purchase and may vary depending on a variety of factors, such as:

• Price of the item
• Nature of the item
• Delivery address of your order

Many organizations and groups qualify as exempt from sales tax and may make purchases on eBay without paying sales tax. To find out more about our Buyer Exemption program, and to claim your sales tax exemption

Even if you live in a state that does not impose a sales tax, you may still see tax calculated on your order if it is shipped to a state that does impose a tax. Similarly, sales tax may still be applicable if you live outside of the United States.

[dave1442397]

NJ has no sales tax on clothing.  The item was listed under cycling clothing. Ebay's software should be able to figure out that no sales tax is due. I work in IT, so I know it can be fixed.

None of the categories you listed applies to this rather simple situation:  clothing + NJ = no sales tax.

[disneyshopper]

The item was listed under cycling clothing.

So the main category was CYCLING, and the subcategory was clothing?  If so, that is why you were charged sales tax.

[7606dennis]

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@dave1442397 wrote:

I guess I can just dispute the charge with my credit card company. I wouldn't have a clue how to get sales tax back from the state. 

---

Perhaps it would behoove you to contact your state's taxing agency to find out.

[kare-bearb]

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@disneyshopper wrote:

The item was listed under cycling clothing.

So the main category was CYCLING, and the subcategory was clothing?  If so, that is why you were charged sales tax.

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The main category was Sporting Goods.

Cycling Clothing is the sub-category.

As I understand it, sales tax calculation is determined by the main category only.

@dave1442397 

[dave1442397]

Why? It's an ebay issue, not a state issue.

[7606dennis]

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@dave1442397 wrote:

Why? It's an ebay issue, not a state issue.

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No!  If you believe that the laws of your state are being incorrectly applied, you should alert the governmental agency whose responsibility it is to enforce those laws.  At least, that is my opinion.  If eBay is incorrectly applying the law, the state taxing authority will have a much easier time in pointing out to eBay, the error of their ways.

[monroe67]

"Why? It's an ebay issue, not a state issue."

Because the taxing authority in the State of New Jersey has your money.   
eBay keeps only 10% of the total sales amount, depending upon the category of merchandise.  On your transaction, eBay will "keep" about $14.54.  
I am sure your State Treasury will be delighted to return your $9.04.  

[megaman]

Chiming in to report multiple threads about being overcharged sales tax on various items in different categories. I was being charged 33% sales tax on batteries for some reason. Another guy was being charged tax for gold coins in a state that has no sales tax. So... is it still a state issue?

[7606dennis]

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@megaman wrote:

Chiming in to report multiple threads about being overcharged sales tax on various items in different categories. I was being charged 33% sales tax on batteries for some reason. Another guy was being charged tax for gold coins in a state that has no sales tax. So... is it still a state issue?

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Yes!  Let the state of New Jersey deal with it.  If eBay is breaking the laws of that state, they can deal with it more efficiently than you can.  Enforcing the laws of that state is their job.  That is why you're paying taxes in the first place.  To pay for them to do their job.

[megaman]

Hey Einstein... I'm not in new jersey. Neither are many of the other people reporting this issue. They are from various states.

But no worries. I've reported this glitch in the technical sub-community. You can go back to couch potatoing.