I'm confused about taxes.

[cyberzer0]

I'm sure this is a really common question right now, but I didn't see it on the first page of discussions...

It seems my personal items are now subject to sales tax when I sell them on eBay. These are items for which I already paid the sales tax when I purchased them. Am I doing something wrong?

Also the buyer gets charged sales tax when I buy a new item and sell it as "new" -- even though I literally just paid the sales tax for that item. There must be some way to avoid this double sales-tax nonsense...right?

eBay has gradually transformed into something entirely different from what it used to be (member since 1999). I may need to find a platform that is similar to a yard sale or classified ad, but I want my personal collectible items to be exposed / available to the entire world.

Any advice?

[chapeau-noir]

The transaction is taxed, not the item, and the sales tax is paid by the buyer in the recipient state, not yourself. This has always been the law, it's just now being enforced internet-wide by a market facilitator tax law in most states. 

[the*dog*ate*my*tablecloth]

Used items have never been excluded from sales tax as far as I know. It is a transaction tax.

any marketplace that is large enough to get buyers will require sales tax. I think buyers who are seeing it everywhere should be used to it now.

You could run your own website but you will still be responsible for tax on instate sales and a LOT of marketing to get eyeballs.

[the*dog*ate*my*tablecloth]

Chapeau is correct. This tax was always owed by buyers. They just changed the collection method so tax evaders would pay the tax they owed.

[pburn]

ETA: Well, I've once again successfully cross-posted with all these other posters. There were no replies when I started composing my post.  🙄

eBay is a marketplace facilitator and therefore required by law to collect sales tax on transactions in the vase majority of states.

When you go to a thrift store or an antique store or a consignment shop, you are charged sales tax on your purchases, too, right? Same thing.

If you qualify to receive a sales tax exemption for acquiring inventory you intend for resale, you can be exempt from paying sales tax on your purchases. You can find the forms online.

This has nothing to do with eBay per se. In fact, they fought against the legislation pretty hard. eBay may be guilty of a lot of things, but this is not one of them. It was a Supreme Court decision that cleared the way for states to write (and pass) legislation allowing sales tax on internet purchases.

[lacemaker3]

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@cyberzer0 wrote:

...

Also the buyer gets charged sales tax when I buy a new item and sell it as "new" -- even though I literally just paid the sales tax for that item. There must be some way to avoid this double sales-tax nonsense...right?

...

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@cyberzer0,

If you are buying items for resale, then they are not taxable purchases. You need to register for a sales tax number with your state. Then you will be able to get a sales tax exemption and not pay the sales tax when you purchase items for sale.

All items that are sold on eBay are considered to be retail sales (sales to a final consumer) unless the buyer has a sales tax exemption filed with eBay. Retail sales are subject to sales tax if the item is a taxable item in the buyer's state, the state it is being delivered to.