File FTC Complaint for unfair/unethical business practices??

[larry-and-debbies_treasures]

 The issue is Ebay collects sales tax on items that are not taxable in most states, then ebay charges a higher final value fee for the increased sale.  For years we have been advising buyers to contact ebay when this happens and get the incorrectly charged sales tax refunded which in most cases ebay will refund the buyer for the error but seller still pay the higher fee.  This unfair business practice has a negative impact on both buyers and sellers.  As a small seller filing a complaint may not provide any action on the part of Ebay however if others sellers join in filing a complaint we may get results, any thoughts?

[ckimodog]

@larry-and-debbies_treasures 

Sorry for your frustration.  Please note that you are in violation of this communities guideline rules:

Community guidelines

Calling for petitions, boycotts, lawsuits, or other calls to activism in either posts or private messages or to otherwise drive traffic elsewhere.

Not allowed on this forum.

[larry-and-debbies_treasures]

Ok good to know, thanks

[monica-sells]

"...which in most cases ebay will refund the buyer for the error..."

are you sure this statement is accurate? I have been advised on more than one occasion if sales tax was "erroneously charged", the buyer had to petition the state in which they reside for a refund.

It might not be true in your case, but many cases appear to be items that are listed in the wrong category or improperly listed item specifics and not qualifying for the exemption status.

[kensgiftshop]

Usually if the buyer is charged sales tax and shouldn't have been, it's because the seller has the item listed in the wrong category.

[im-poor2]

Not true. It has happened numerous times to my purchases of coins.

[stainlessenginecovers]

The "F" in FTC stands for Federal.

Not ALL states 'exclude' sales tax from the sale of Coins/Bullion...

Therefore, you can not talk to or get a FEDERAL entity involved in this what so ever (or I should say, they will NOT get involved)

Also, some states don't charge sales tax at all;

So this is all for naught. 

[tobaccocardyahoo]

Sales Tax is only sometimes identical to Marketplace Fulfillment Tax. Some states have simplified MFT from sales tax. Some states may not have had the same exceptions from MFT,

Many Ebay buyers are unaware of MFT and have asked their states for info on sales tax not MFT and may not have gotten accurate information.

All too often things which involve the government become more complex and harder to determine what the policies and procedures are, with the passage of time.

[dbfolks166mt]

The "F" in FTC stands for Federal.

Not ALL states 'exclude' sales tax from the sale of Coins/Bullion...

Therefore, you can not talk to or get a FEDERAL entity involved in this what so ever (or I should say, they will NOT get involved)

Also, some states don't charge sales tax at all;

So this is all for naught. 

     With more than 10,000 various state, county, parish, city, municipality........... sales tax laws I am actually surprised this does not happen more often and in fact maybe it does and nobody really notices. However while the application of sales tax to Interstate ecommerce sales was decided but the US Supreme court that just ruled that it was Constitutionally correct for States to impose the tax. 

     The specific rules and guidelines for the application and collection of the sales tax is covered by the individual state, county, city............. laws. Issues involving improper application and collection of sales taxes fall under the purview of the individual states. Most states have an attorney general which would be a good starting point to report the issue(s). 

[kensgiftshop]

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@im-poor2 wrote:

Not true. It has happened numerous times to my purchases of coins.

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Look and see what category they are listed in.

Sometimes they'll list them under collectables and that's why sales tax is added.

[monroe67]

"The issue is Ebay collects sales tax on items that are not taxable in most states, then ebay charges a higher final value fee for the increased sale.  For years we have been advising buyers to contact ebay when this happens and get the incorrectly charged sales tax refunded which in most cases ebay will refund the buyer for the error but seller still pay the higher fee.  This unfair business practice has a negative impact on both buyers and sellers.  As a small seller filing a complaint may not provide any action on the part of Ebay however if others sellers join in filing a complaint we may get results, any thoughts?"

Yeah, here are my thoughts.

You have posted in the Selling community and mention that "a small seller filing [one] complaint" may not get any result from eBay.

Most often when a buyer complains that sales tax was incorrectly charged -- yes, even on coins -- the problem can be traced to the seller not listing the item in the non-taxable category. 

In other words, the seller could be seen as being "at fault" when a buyer pays too much in sales tax.  

eBay simply cannot take on the responsibility for making sure that e-v-e-r-y seller lists e-v-e-r-y item in the proper category.  I can't even imagine the increased selling fees that eBay would charge if they started that kind of scrutiny. 

The common wisdom -- at least in these eBay community forums -- on how a buyer can get his/her sales tax money back is that the buyer would need to contact his/her state's taxing authority.  After all, sales taxes are paid to the state where the item is delivered.  So, the buyer's tax money is in, say, Sacramento, or Des Moines, or Austin, or Albany.   (If I learned the 50 state capitals in grade school, I have forgotten most of them now.)  

[stainlessenginecovers]

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@dbfolks166mt wrote:

The "F" in FTC stands for Federal.

Not ALL states 'exclude' sales tax from the sale of Coins/Bullion...

Therefore, you can not talk to or get a FEDERAL entity involved in this what so ever (or I should say, they will NOT get involved)

Also, some states don't charge sales tax at all;

So this is all for naught. 

     With more than 10,000 various state, county, parish, city, municipality........... sales tax laws I am actually surprised this does not happen more often and in fact maybe it does and nobody really notices. However while the application of sales tax to Interstate ecommerce sales was decided but the US Supreme court that just ruled that it was Constitutionally correct for States to impose the tax. 

     The specific rules and guidelines for the application and collection of the sales tax is covered by the individual state, county, city............. laws. Issues involving improper application and collection of sales taxes fall under the purview of the individual states. Most states have an attorney general which would be a good starting point to report the issue(s). 

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@dbfolks166mt  Yep- Just Pennsylvania alone has over 30 pages (1000's) of 'weird/sort of/ kind of exceptions for sales tax- like Blue Tarps are but White are not (exaggerating but head did explode when looking at this ridiculously large list- so glad I'm NOT in that state doing business outside of a Marketplace)

[ayem-9792]

Of course it isn't. LOL Wouldn't want people to gang up on "poor" ebay... 

[ed8108]

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@larry-and-debbies_treasures wrote:

 The issue is Ebay collects sales tax on items that are not taxable in most states, then ebay charges a higher final value fee for the increased sale. 

  This business practice has a negative impact on both buyers and sellers.  

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Have you contacted your state sales tax authority & reported the issue ?

[brightlightbookseller]

You're coming into eBay's "house" and threatening them.  Does that sound like something they should allow?