How Do State Taxes Work

[minerva234]

When I make a sale within my State eBay adds State sales tax to the sale.  Who gets that tax money?  Does it go into my account, or does it get sent to the State Department Revenue?

[kemcin_26]

You have to remit the taxes yourself to the State Department of Revenue

[luckythewinner]

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@minerva234 wrote:

When I make a sale within my State eBay adds State sales tax to the sale.  Who gets that tax money?  Does it go into my account, or does it get sent to the State Department Revenue?

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It works just the same as when you go to a store down the street and pay sales tax.

The tax gets calculated by the seller and collected by the seller on behalf of the state.

It is the seller's job to fill out the forms and remit it to the state. 

If the the seller keeps the money, he is committing tax fraud.

[minerva234]

eBay automatically adds taxes into the sale - I see it on the invoice. When does the money eBay collects for State sales tax go? Does it go to my StateDepartment of Revenue.. or doe it go into my PayPal account?

[thallidguy]

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@minerva234 wrote:
eBay automatically adds taxes into the sale - I see it on the invoice. When does the money eBay collects for State sales tax go? Does it go to my StateDepartment of Revenue.. or doe it go into my PayPal account?

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Actually, eBay only collects sales tax for you on the items you sell if you authorize them to do so. And frankly, if you were authorized to collect sales tax in your state, you would already know how this works. Do you have a reseller's license in your state? If not, then you're probably not authorized to collect sales tax.

[hippychick4ever59]

The taxes are paid to you.  Your total sale including taxes minus pay pal fees are put into your pay pal account.  If you are a small seller like me you need to get a business sales tax license in your state and remit the taxes to them.  If you don't have many sales and for me anyway it is once a year.  I keep track of my in state sales and send in my taxes electronically at the end of the year.  If you are a larger seller like my husband he has to send his in every month.  We also claim the ebay sales on our income taxes.  If you are just selling a few things on here most states and the federal government does not care if you are in the garage sale catagory.  I would start by looking up your tax laws in your state.  On each one of your listings there is a box to check or uncheck on your sales tax.  So this involves you deciding is this a garage sale or a business.  Hope this helps. 

[d-k_treasures]

I don't see any sales tax listed on any of your listings, so how can it be added to your invoices to buyers? You're not even in one of the 2 states that other sites(and maybe ebay) collect and remit it for you. Unless one of the buyers was from that state and they got that wrong too(IF they are doing this like other sites do).