Ebay Sellers and Internet Sales Tax

[faithfashionfriends]

I am planning on winding down my Ebay store this Fall. Just found out that by October there will be 21 states in the Union paying online sales tax. That is going to kill online sales. Also by 2020 all the states in the union will charge internet sales tax. Those good ole days of no internet sales tax are over. Paypal and Ebay are already separate,but Ebay will be setting up separate accounts for Sellers and their income tax. Just not something I want to get into. Hope everyone is getting ready for the big change coming. Info was from Ebay. 

[mam98031]

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@faithfashionfriends wrote:

I am planning on winding down my Ebay store this Fall. Just found out that by October there will be 21 states in the Union paying online sales tax. That is going to kill online sales. Also by 2020 all the states in the union will charge internet sales tax. Those good ole days of no internet sales tax are over. Paypal and Ebay are already separate,but Ebay will be setting up separate accounts for Sellers and their income tax. Just not something I want to get into. Hope everyone is getting ready for the big change coming. Info was from Ebay. 

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I'm not sure I understand your concern.  What do you mean that Ebay will have separate accounts for my income tax?  What does income tax and sales tax have to do with your concerns?  I'm just trying to understand.

As to internet sales and sales tax.  Buyers will get use to it and all will be fine in time.  It isn't just Ebay, it is everywhere on the internet.  Internet shopping is too convenient for many people and they aren't going to give that up.  It saves them too much time and energy.  So I think for this portion of your concern, it is going to work out fine.

[extrememobility]

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As to internet sales and sales tax.  Buyers will get use to it and all will be fine in time.  It isn't just Ebay, it is everywhere on the internet.  Internet shopping is too convenient for many people and they aren't going to give that up.  It saves them too much time and energy.  So I think for this portion of your concern, it is going to work out fine.

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Buyers are NOT going to pay shipping & sales tax  if they can buy locally and just pay sales tax. I won`t do it!  say goodby to internet sales!

[new_haven_toys]

I agree, I won't buy anymore as I don't want to pay my States sales tax when buying something out of my State. Also, sales have died to practically nothing. I have to believe buyers are feeling the same way and have stopped buying. Just as I have.

[fern*wood]

The laws in my state required paying a use tax when I filed my taxes if  I purchased outside my state without paying the tax.  Most people never did this, so the states decided to act and the Supreme court agreed.  

You know what they say a death and taxes (of course some are above one of these).

[luckythewinner]

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That is going to kill online sales

Not if you are selling things that buyers cannot get locally, or of your prices with sales tax & shipping are still cheaper than a buyer's local sources.   

Also by 2020 all the states in the union will charge internet sales tax.

Not true. Delaware, Oregon, Montana, and New Hampshire do not have sales tax. 

Ebay will be setting up separate accounts for Sellers and their income tax

I have never heard of this. Please explain. 

Just not something I want to get into

SInce eBay is doing all the work, it;s not a big deal to me. 

[soh.maryl]

OK, point taken.  But you may have not taken into consideration the many small town or rural locations of many buyers where they cannot just drive into town and buy it without paying shipping.  A lot of them have become accustomed to doing a large part of their shopping online and won't desert eBay just because of this.

[soh.maryl]

Just to be clear, you do know that the state sales tax that eBay charged on your purchase goes to YOUR state, not to the seller's state, right? If you are, for instance, in New Jersey and buy from a seller in Idaho, New York, Florida or wherever, the state sales tax that eBay charges you on that purchase goes to the appropriate agency in New Jersey.

[new_haven_toys]

I  understand that, and it is exactly why I won't buy anymore. If the sale of the item was in Florida, why does my State get the " sales" tax? Especially my state of Connecticut. It is one of the highest taxed states in the Union and it will never stop finding ways to tax the consumer.  It makes little sense to me how a Connecticut sales tax is allowed to affect sales in other states. Which it looks like it is actually doing.

[soh.maryl]

Although the states you have named here may not have a state sales tax now, who's to say that their legislatures will not jump on the bandwagon and enact state sales taxes? Many states are struggling financially and would welcome the chance of more income.

[ersatz_sobriquet]

Buyers will do what they are already doing--compare the shipping fees against their time and effort to source the item locally. Sales tax really isn't going to make a difference one way or another because they will be paying sales tax if they source the item locally. 

[gracieallen01]

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@new_haven_toys wrote:

I  understand that, and it is exactly why I won't buy anymore. If the sale of the item was in Florida, why does my State get the " sales" tax? Especially my state of Connecticut. It is one of the highest taxed states in the Union and it will never stop finding ways to tax the consumer.  It makes little sense to me how a Connecticut sales tax is allowed to affect sales in other states. Which it looks like it is actually doing.

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Well, supposedly, if Conn. is like the rest of the states, when you pay your state income tax, there is a line that is supposed to be used to declare out-of-state purchases.  Use tax. I believe it is commonly called.  Of course, most people don't use that line and that is why there is now a tax collected on the Internet - to close that loop-hole (workaround).

Don't you just love how people want fire, police, schools, parks, bike lanes, good roads, etc., but don't want to pay for it?

[new_haven_toys]

Not all States have an income tax. Towns and cities, local taxes will provide for their local purposes. Those are not sales taxes.

[gracieallen01]

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@luckythewinner wrote:

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That is going to kill online sales

Not if you are selling things that buyers cannot get locally, or of your prices with sales tax & shipping are still cheaper than a buyer's local sources.   

Also by 2020 all the states in the union will charge internet sales tax.

Not true. Delaware, Oregon, Montana, and New Hampshire do not have sales tax. 

Ebay will be setting up separate accounts for Sellers and their income tax

I have never heard of this. Please explain. 

Just not something I want to get into

SInce eBay is doing all the work, it;s not a big deal to me. 

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Looks like there may be a fair chance that sellers in Delaware, Oregon, Montana, and New Hampshire may  well get more sales and a lot more sellers will move to those states. 

[gracieallen01]

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@new_haven_toys wrote:

Not all States have an income tax. Towns and cities, local taxes will provide for their local purposes. Those are not sales taxes.

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So, do those towns and cities just print up their own money?  Perhaps not all states have an income tax, but I believe most do, and the money still has to come from somewhere for 'public services'.  (Have you ever driven on the roads in Arizona?  Fly, don't drive.  )