Collecting State Sales Tax

[itsyoudesigns_1]

I'm brand spanking new to ebay, but I have a question regarding state sales tax. I do have a resale license so I'm required to collect sales tax for items purchased in Oklahoma. I found some instructions that say there's a "Tax Table" under Site Preferences. But when I go to Site Prefrerences, there is no "Payments from buyers" section.

I've done some searches on the discussion board, but I didn't see where anyone else had a problem with this. Am I missing something?

Also, on one of the messages I read, someone stated that they couldn't set up more than one tax rate per state on ebay? Please tell me this isn't true since most states also have county (or township) as well as city taxes so every city's rate might be different. As big as ebay is, they aren't able to set this up? 

Can anyone suggest a way to get the correct amount of tax charged for in-state purchases if this is the case?

Thank you for your time and any help you can give me with this.

[sam9876]

What are you selling?

[itsyoudesigns_1]

I'm starting out with some handbags and jewelry.

[goodluckselling]

Use this link to set up your sales tax

https://pages.ebay.com/help/pay/checkout-tax-table.html

Good Luck Selling!

[sam9876]

"I'm starting out with some handbags and jewelry."

Are those items things that you have been using personally?  Or are you selling new items?

[itsyoudesigns_1]

No; these are all new items that I'm selling under my actual business.

I have another account that's my personal ebay account where I'm selling some used things for which I don't collect sales tax.

[itsyoudesigns_1]

That's the information I'm referring to when I originally started trying to set up the sales tax table. Notice under #2 it says to click on "Show in the Payments from buyers section." This section isn't under Site Preferences (or at least I don't see it). Am I missing something?

To set up a tax table:

1. Go to My eBay > Account > Site Preferences.

2. Click Show in the Payments from buyers section

[goodluckselling]

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@itsyoudesigns_1 wrote:

That's the information I'm referring to when I originally started trying to set up the sales tax table. Notice under #2 it says to click on "Show in the Payments from buyers section." This section isn't under Site Preferences (or at least I don't see it). Am I missing something?

To set up a tax table:

1. Go to My eBay > Account > Site Preferences.

2. Click Show in the Payments from buyers section

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I am not sure?  I did mine a lots of years ago.  It will really depend on a few things.  Do you use business policies?  If so you should be able to do the setup within that area. 

If not then try to edit an active listing and I think there should be an area that asks you about sales tax and a tab to click to set it up.  Once you set it up it should ask you if you want to apply this to all your listing.

Good Luck Selling!

[goodluckselling]

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@goodluckselling wrote:

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@itsyoudesigns_1 wrote:

That's the information I'm referring to when I originally started trying to set up the sales tax table. Notice under #2 it says to click on "Show in the Payments from buyers section." This section isn't under Site Preferences (or at least I don't see it). Am I missing something?

To set up a tax table:

1. Go to My eBay > Account > Site Preferences.

2. Click Show in the Payments from buyers section

---

I am not sure?  I did mine a lots of years ago.  It will really depend on a few things.  Do you use business policies?  If so you should be able to do the setup within that area. 

If not then try to edit an active listing and I think there should be an area that asks you about sales tax and a tab to click to set it up.  Once you set it up it should ask you if you want to apply this to all your listing.

Good Luck Selling!

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I just tried to do this using the link I provided earler and I can see all the steps to do this.  Just to make sure we are talking about the same area.  In your site preferences Payments from Buyers is the third section from the top.  Once you click the show tab (far right area)  it should let you choose yes or no and then edit your settings.

If you are still not seeing this then you mjight need to call ebay to see if this is only available to sellers accounts that are business registered on eBay?  Not really sure what else to have you try?

Good Luck Selling!

Good Luck Selling!

[lacemaker3]

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@itsyoudesigns_1 wrote:

No; these are all new items that I'm selling under my actual business.

I have another account that's my personal ebay account where I'm selling some used things for which I don't collect sales tax.

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FYI, Oklahoma doesn't have an exemption from sales tax for used items or personal possessions. You are expected to collect sales tax on those sales as well. There's nothing on the website about an exemption for used items, or "occasional sales" or "garage sales" which some states have exemptions for.

Oklahoma state website:
Business Sales Tax

This information is designed to assist business people and people thinking about operating a business in Oklahoma. What follows is meant to be basic, introductory information and should not be considered the final word in business taxes in Oklahoma. For further information, please contact one of our Taxpayer Assistance Offices or attend one of our Business Tax Workshops.

Oklahoma State Sales Tax is levied at 4.5 percent of the gross receipts from the sale or rental of tangible personal property and from the furnishing of specific services, including printing and advertising (except in newspapers, periodicals, and on billboards, as well as any advertising through the electronic broadcast media, including radio, television and cable television), transportation and auto parking, admissions, lodging and meals, telephone service and the furnishings of other public utilities, such as electricity and natural gas, with the exception of water. State sales tax does not apply to electricity or natural gas utility bills for residential property but remain subject to any applicable municipal and county taxes in effect at the time of sale. The furnishing of natural or artificial gas and electricity for commercial use, such as retail stores, warehouses, etc, is subject to state, city and county sales tax. Natural gas and electricity used directly in the manufacturing process is exempt if the manufacturing company holds an exemption certificate.

There are several other exemptions from sales tax, including general exemptions, agricultural exemptions and tax-exempt from sales tax. Prescription drugs for human consumption are exempt from sales tax. This exemption does not apply to proprietary or patent medicines.

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[itsyoudesigns_1]

I called ebay to find out what the issue was. The reason I wasn't able to see that option (or several others) is because I hadn't listed anything to sell yet. Once I did that, it showed up.

But now we have the issue that I can only set up one tax rate. Unfortunately, Oklahoma has about 500 different cities with a potential of 500 different rates (there aren't that many different rates, but there are quite a few depending on county and city rates).

How do ebayers handle this since you're only allowed to set up one tax rate per state?

[tev4all]

Set the tax rate for your store location. When a buyer comes to your store location from another city in your state do you charge them differently?  If so, do you pay their city/county the tax you collected?  

[itsyoudesigns_1]

Obviously you wouldn't charge someone their city's sales tax if you had a physical location and they come to you. But Oklahoma sales tax is supposed to be collected based on their address if you are selling online and the product is being shipped to an address within the state.

I guess I don't have a choice but to collect the tax based on where I live which means some people will be overcharged and some undercharged. I don't really like doing it that way, but I don't see any other option.

I just can't believe that ebay doesn't have a way to set this up correctly as big as they've gotten. 

Thank you for your help; I really do appreciate it!!

[itsyoudesigns_1]

Oh boy; that's not good!  Thank you for showing me that; I appreciate it!!

[lacemaker3]

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@lacemaker3 wrote:

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@itsyoudesigns_1 wrote:

No; these are all new items that I'm selling under my actual business.

I have another account that's my personal ebay account where I'm selling some used things for which I don't collect sales tax.

---

FYI, Oklahoma doesn't have an exemption from sales tax for used items or personal possessions. You are expected to collect sales tax on those sales as well. There's nothing on the website about an exemption for used items, or "occasional sales" or "garage sales" which some states have exemptions for.

Oklahoma state website:
Business Sales Tax

This information is designed to assist business people and people thinking about operating a business in Oklahoma. What follows is meant to be basic, introductory information and should not be considered the final word in business taxes in Oklahoma. For further information, please contact one of our Taxpayer Assistance Offices or attend one of our Business Tax Workshops.

Oklahoma State Sales Tax is levied at 4.5 percent of the gross receipts from the sale or rental of tangible personal property and from the furnishing of specific services, including printing and advertising (except in newspapers, periodicals, and on billboards, as well as any advertising through the electronic broadcast media, including radio, television and cable television), transportation and auto parking, admissions, lodging and meals, telephone service and the furnishings of other public utilities, such as electricity and natural gas, with the exception of water. State sales tax does not apply to electricity or natural gas utility bills for residential property but remain subject to any applicable municipal and county taxes in effect at the time of sale. The furnishing of natural or artificial gas and electricity for commercial use, such as retail stores, warehouses, etc, is subject to state, city and county sales tax. Natural gas and electricity used directly in the manufacturing process is exempt if the manufacturing company holds an exemption certificate.

There are several other exemptions from sales tax, including general exemptions, agricultural exemptions and tax-exempt from sales tax. Prescription drugs for human consumption are exempt from sales tax. This exemption does not apply to proprietary or patent medicines.

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I also found this information about "occasional sales" and "casual sales" which would apply to selling your personal items:

Sales Tax Questions:

2. Do I really need a sales tax permit?

A sales tax permit is needed if you are selling tangible personal property for monetary or other consideration on an ongoing basis. All consideration received for the sale is included in gross receipts subject to tax. “Tangible personal property” is that which can be seen, weighed, measured, felt or touched or that is in any other manner perceptible to the senses, including electricity, water, gas steam and prewritten computer software for frequent or occasional sales. No permit is issued or required for occasional sales, file a report only when sales are made. Indicate on the Sales Tax Report it is a “casual” sale.