@mystuffonearth wrote:
I have already paid taxes on these when i brought them new. If i sell them now, do i have to collect sales tax?
The fact that you are may not be making a profit on the transaction has nothing to do with sales tax, that has to do with income tax. For example, department stores holding clearance sales still charge sales tax even though they are losing money on the items.
Sales tax is not a tax on an item, it is a tax on a transaction. If an item gets bought and sold a dozen times, there are a dozen transactions and potentially a dozen sales tax payments made.
So you did not pay sales tax on that item when you originally bought it, you paid sales tax on the transaction that occurred when you originally bought it.
Today, when you start a new transaction on eBay to sell it to someone else, the person you sell it to may be required to pay sales tax on that new transaction.
Now, with all that cleared up ....
The new Supreme Court ruling and confusion over sales tax is is not about where you are located, it is about where your buyer is located. The SC ruled in South Dakota's favor, upholding a law that forced sellers who sold more than $100,000 to SD residents to collect and send sales tax to SD on those purchases made by SD residents. Now other states are considering their own laws.
When you sold to people in NJ in the past, you may have already been required to collect sales tax on behalf of NJ. You would have to check with NJ on that.
But going forward, you may also be required to collect sales tax on behalf of other states and send it to them as well. But many eBay sellers may not reach the threshold of sales required for those laws to apply.
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