Charging Sales Tax for Clothes in a State where it is exempt NJ PA etc

[partsman836]

If the purchase of all clothing and shoes are tax exempt inside New Jersey should Ebay be collecting state sales tax on those purchases?  Should NJ buyers of clothing from sellers in NJ be exempt? should all buyers buying from sellers in NJ be exempt ?  should no buyers buying from sellers in NJ be exempt?  Thank you 

One example of the many sales tax exemptions offered by states is an exemption for clothing. Eight states fully or partially exempt clothing in general. Clothing is fully exempt in Minnesota, New Jersey, Pennsylvania and Vermont. In three states, clothing up to a certain cap is exempt (in Massachusetts the cap is $175, in New York it’s $110, and in Rhode Island it’s $250). Connecticut will exempt clothing and footwear under $50 starting on June 1, 2015.

[onefootflipper1]

In many cases the individual state's tax laws make the tax on the internet purchases a different class of tax that doesn't have any of the exemptions they have in the sales tax from in-state purchases.  It is often a "Use tax" and doesn't have any exceptions.

[lacemaker3]

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@selsa84 wrote:

Interesting, I was just charged 7 % sales tax on a purchase and I am in Georgia( which is 4%) and  Tennessee(where the sellers is at is 7 %). 

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@selsa84,

According to the location on your listings, you are in Monroe, Georgia. The minimum combined state and local tax rate there is 7%.

[slippinjimmy]

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@lacemaker3 wrote:

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@selsa84 wrote:

Interesting, I was just charged 7 % sales tax on a purchase and I am in Georgia( which is 4%) and  Tennessee(where the sellers is at is 7 %). 

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@selsa84,

According to the location on your listings, you are in Monroe, Georgia. The minimum combined state and local tax rate there is 7%.

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How is it even possible that a person (eBay seller or not) doesn't know what the Sales Tax rate is where they live? My mind is boggled and I do wonder what other obvious things such persons do not know.

[soh.maryl]

And it should be noted that there are also several states that do not charge state sales tax on anything, like Delaware and Oregon, for instance.  That's why a lot of freight forwarders are located in those states because international buyers using those freight forwarders do not  pay any state sales tax on their purchases.  

[mtgraves7984]

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@selsa84 wrote:

Interesting, I was just charged 7 % sales tax on a purchase and I am in Georgia( which is 4%) and  Tennessee(where the sellers is at is 7 %). 

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@selsa84 

In Tennessee, our state sales tax is 7% and each county adds another percentage. My county adds 2 1/4%, so 9 1/4% for me.

[lacemaker3]

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@slippinjimmy wrote:

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@lacemaker3 wrote:

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@selsa84 wrote:

Interesting, I was just charged 7 % sales tax on a purchase and I am in Georgia( which is 4%) and  Tennessee(where the sellers is at is 7 %). 

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@selsa84,

According to the location on your listings, you are in Monroe, Georgia. The minimum combined state and local tax rate there is 7%.

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How is it even possible that a person (eBay seller or not) doesn't know what the Sales Tax rate is where they live? My mind is boggled and I do wonder what other obvious things such persons do not know.

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Why would anyone *NEED* to know the percentage sales tax rate they pay for in-person purchases locally? You just pay what the cashier asks for, or at self-checkout you stick  your card in the machine and it charges what it charges to your account. Or you insert bills (and/or coins) until the self-checkout is satisfied.

With that said ... yes, I do know what percentage I am charged locally, and how much I would pay at stores in other cities and counties, adjacent to my own location.

Maybe the person was not aware that eBay also collects the local, county, city and municipality taxes as well as the state taxes.

A lot of people on here are not aware that, even though there is no state sales tax in Alaska, municipalities there are allowed to charge sales tax, and eBay does collect the sales tax for those cities and municipalities in Alaska that do charge sales tax.

[soh.maryl]

Should NJ buyers of clothing from NJ sellers of clothing be exempt?

The answer would be "yes" because that buyer's delivery address would be NJ.

And, of course, that item of clothing would have to have been listed under "Clothing", not "Sports

Memorabilia" .

Should ALL buyers of clothing from sellers in NJ be exempt? No.  They would only be exempt  if their state also did not have a sales tax on clothing.  

[selsa84]

I don't live here. I live in Az. 

[selsa84]

Yep. You're correct 

[fleepsko]

Last April I purchased a hat on eBay. Both myself & the seller reside in Pa. I called eBay to get a refund. This also happened two prior times and I was refunded. I was told it could take up to 60 days and waited until July ad heard nothing. I then used chat and the rep said he would mark it priority buy again I was told it could take up to 60 days for a refund.  It's been around six months and nothing. It's obvious eBay doesn't care and they just give you the run around and hope you'll forget about it.  The amount is a little over a dollar and I've been waiting 10 months. From what I'm reading this could be a class action suit waiting to happen as it seems everyone that lives in Pa. that buys clothing is illegally being charged sales tax.  

[crogs571]

I'm sorry, but if you can't properly charge sales tax regardless of category, you shouldn't charge it at all until you figure it out. Normal retail sites don't have this issue. Think I've encountered it once since it's been implemented across all my online shopping.

I've had a handful of issues on ebay and one just this morning. Got charged sales tax on a pair of shoes in men's clothing when my past two shoe purchases over the past week were not charged tax. In PA.

Then it's a half hour with chat trying to get it sorted. Has to go to their team and up to 60 days to get it resolved. Just not a pleasant buying experience overall.

This is not anywhere close to a new thing anymore, so it's fairly sad they can't get it right and shows they don't really give a crap to try and get it right. Fees go up, service continues to go down. As a buyer and a seller, ebay has become a strictly as needed site. I do 90% of my selling elsewhere. And I usually manage to find deals on what I want to buy elsewhere. I only turn to ebay when I have to at this point.