Ebay profiting on tax collection

[the_mobile_store_36551]

Frequent topic, yet to date it has no resolution.

Ebay profits by collecting from sellers a percentage on the taxes it collects on each transaction. 

Defenders say it costs this amount for Ebay to remit taxes to the various states. For example, a $1k item with $100 in taxes costs Ebay $15 (15٪) to account for and remit those taxes? Doubtful.  Further, there are economies of scale that being this cost way down when submitting taxes linked to many transactions to a single state.

In the end, discovery via class action

litigation will show that Ebay is profiting off the taxes it collects. Worse yet, the profits increase with the the size of the transaction. Ebay's effort to collect and remit taxes does not increase with the size of the transaction. 

Lastly, this form of fraud discourages transactions by punishing sellers of higher priced items that are charged higher fees on taxes collected. The Internal Revenue Service can be expected to take issue with this. 

My group may even assert discriminatory claims on this basis in our federal court Complaint. If you are an Ebay seller, I encourage you to join our class action filing.

[carlmarxx]

Ebay has  deal only   with  City of San Jose  California  do to the Ca. Tax code  loop hole  to keep  30% of Ca. sale tax   in  the 10 deal worth 20+ million dollars  they collect  as merchant of record in state of California  signed  in 2019 November. I as I said in my other  post  here  .  in that deal  all sale tax ebay  collected from  California  sellers  on their site  and those sellers  city's  don't get a cent of it .  I haven't  read  or seen any news  reports  from Ca. state  city  franchise boards   complain about the deal  back when it was signed  .