tax fraud

[jfra8480]

ebay is attaching taxes to some offerings of us coinage....there is no tax on purchases of us coinage in the state  of florida.....is curious of what explanattion ebay can offer for this illeagal activity... 

[austere-northern-forests]

I live in Michigan, and ebay is doing the same to me on bullion purchases.   It is unlawful to collect such taxes in a state in which such a tax is not levied.  Unfortunately, once they get that tax money, eBay is very reluctant to return it.

[house*of*paws]

Hi @jfra8480 

Nobody here is familiar with the tax laws of each state that requires eBay to collect tax.  BUT since FL started online taxing fairly recently ... I happen to recall that FL collects tax on currency that sells for more than its face value.

You really should be sure you know what you're talking about before pronouncing something 'illegal'.  🙂

[house*of*paws]

Hi @austere-northern-forests 

See my answer to @jfra8480 .  It's very likely that Michigan may also tax currency that sells for more than its face value.  

eBay obeys the laws of the individual states.  It doesn't keep any tax money.  It is sent to the state where the item is delivered.

[monroe67]

Thank You, house*of*paws!!  That helps explains to me the tax that was charged on the sale of a silver dollar coin to a buyer in Florida last summer-ish (by my selling ID -- who is not in Florida).  

Sales tax was charged on it.   It was a dollar coin = face value $1.00.  Yes, it did sell for a large multiple of that one-dollar face value.   Collector coin, sealed in a capsule, beautiful, graded PF 70, part of a small inheritance.   The buyer, in Florida, didn't raise any questions or concerns, so I assumed he/she knew about Florida's tax laws.  

I didn't completely understand it then.   Three weeks later, I sold a similar coin to a buyer in Texas, who was not charged sales tax.  Texas obviously has different laws regarding taxation of coins.  

So, I just decided to trust eBay.   I was pretty sure they had hired a lot of attorneys who had studied taxation laws in all 50 states and US territories.  I certainly didn't want to try to learn anything about tax laws in states other than where I live.  

[austere-northern-forests]

Except in Michigan there is no tax on collectible coins or bullion:  

GENERAL SALES TAX ACT (EXCERPT)
Act 167 of 1933

205.54s Sale of investment coins and bullion; exemptions; definitions.

Sec. 4s.

  (1) A sale of investment coins and bullion is exempt from the tax under this act.

  (2) As used in this section:

  (a) "Bullion" means gold, silver, or platinum in a bulk state, where its value depends on its content rather than its form, with a purity of not less than 900 parts per 1,000.

  (b) "Investment coins" means numismatic coins or other forms of money and legal tender manufactured of gold, silver, platinum, palladium, or other metal and issued by the United States government or a foreign government with a fair market value greater than the face value of the coins.

The tax is unlawful, and should not be collected.  Also, it is extraordinarily hard to get the money returned.

[jfra8480]

ebay is paid a % of the taxes by the state for collecting  the tax....

[jfra8480]

wow....people trusting ebay to do the right thing....

[jfra8480]

I am quite sure of the laws in florida involving this situation....and ebay will be sure too....once the attorney generals's  office contacts them with a cease and desist order....

[divwido]

Know what bugs me the most about this post?  

Did you go to the website of your states sales tax authority and look anything up?  Let's vote a big NO on that.

Did you think to call them and ask them for any clarification of their rules and laws?  another NO, that's not good

No, you came here and accused eBay of something without any knowledge or basis or quite possibly, a clue what you are talking about.    We don't want to bother than people who make the rules, just the ones who are following them because they were forced to. 

Stupidity abounds.

[house*of*paws]

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@jfra8480 wrote:

I am quite sure of the laws in florida involving this situation....and ebay will be sure too....once the attorney generals's  office contacts them with a cease and desist order....

---

@jfra8480 

Enjoy your certainty.  🙂

For others anyone interested in what Florida law actually says ... here is a link to the progression of Florida's laws on taxing legal currency:

https://www.flrules.org/gateway/ruleno.asp?id=12A-1.0371

From the above:

>>   When coins or currency that are in circulation in, and the legal tender of, a nation are exchanged for coins or currency in circulation in, and legal tender of, another nation, no tax is due when the coins or currency are exchanged solely for use as legal tender and the rate of the exchange is based on the value of each nation’s coins or currency as a medium of exchange.   <<

[monroe67]

Thanks -- selling on eBay has worked out pretty well for me.  

[austere-northern-forests]

There really isn't anything else that we can do.   Someone has to be held accountable for unlawfully taxing state-specific exempt purchases made on eBay.  It hurts us the buyers, and it will also begin to hurt the sellers.