Internet tax death of ebay

[warren689]

WOW, Just WOW.  Used clothing being taxed. Items from China being taxed. Who on earth is going to buy used clothing or poor quality items from China that can't be returned when you have to pay $20 tax? I mean for real?   Why is used stuff being taxed when it was taxed the first time it was sold? What's next? Will Garage sales charge tax?  I can't believe our elected officials allowed this to happen. I can understand tax on large businesses but small time people selling used stuff out of their closet is crazy.

[bonjourami]

Mam is right, how would Ebay know how to add the tax prior to listing? And why would the tax be such a surprise when before you check out, it states tax may be added? People dont know the sales tax in their own state? Thats whats surprising.

[7606dennis]

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@mrhid12 wrote:

I think what this person is trying to say (although incoherently...) is that the unequal imposition of sales taxes by states has created purchasing power disparity for people that live in lower- or non-sales tax states as compared to people that live in higher sales tax states.

For example, If I have a budget of $110 for an auction item and live in a 10% sales tax jurisdiction, then I can only bid as high as $100 since my total out of pocket (including tax) will be $110. I will lose the auction every time to someone from a non-sales tax state who is willing to pay $101 - $110 for that same item since they won't pay any sales tax...

This disparity hurts the buyer in the sales tax state since their purchasing power is eroded.  It also hurts the seller since they may not receive as much as they would have in the auction (in my example above, assume the non-sales tax buyer won the auction @ $105: the seller lost $5 because I was willing to pay $110).

I think that's what this person was trying to say, just with fewer words...?

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It is the right of the individual to choose where they want to reside, for the most part.  Frankly, I don't see that it is unfair in any way for buyers living in locations having lower or no sales tax obligations to pay less for goods than those residing areas having higher tax rates.  Of course, I suppose life is not fair if looked at objectively.

The point is that it is up to the states and local government entities to levy the taxes that they deem necessary for their operation.  It is the voters of those government entities that elect the representatives they have chosen to do that.  If those voters are unhappy with the taxes levied by their representatives, they need to deal with that through the ballot box.

Frankly, I'm not surprised that the residents of some jurisdictions must pay more in taxes than others.  After all, the amenities enjoyed by some are not the same as others.  Access to things like art museums and other things are usually more available in large cities as opposed to small rural communities.  Of course, I suppose that the rate of corruption can be just as high in both situations.  That is, again, something for the voters to address come election day.

While some states deem it good to not levy sales/use tax on their residents purchases, I must assume that they have some way of obtaining revenue to support their infrastructure.  After all, even dirt roads require some maintenance. 😉   

[the*dog*ate*my*tablecloth]

My family has a house in NH. No sales tax but the property tax is high. Not sure about income tax. Governments have to get money from somewhere.

[readyfor7]

The internet tax is not fair period.  However, I continue to buy on Ebay because sometimes the seller have the item in stock, or they have a better price so you still save money in the long run.   What I do now is I check the online store price, then I figure out shipping and tax ( I live in the People's Republic of Calif), and compare it to the store prices. If I save a few bucks, and dont mind the wait, I do it.  Besides, COVID-19 basically dictates what is in stock and price, and I dont have to go to the store to get it.  Save gas, and time.  Its a Buyers beware world. 

[readyfor7]

You are wrong. Shipping is NOT taxed.

[readyfor7]

The roads and maintenance is not free.  Nor is providing military and police service is not free.  Getting water to ur house and ridding of sewage is not free.  Thats why we pay taxes.  However, we are taxed to death in most states because of government mismanagement.  Well, my friend, thats another story.  

[mam98031]

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@readyfor7 wrote:

You are wrong. Shipping is NOT taxed.

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@readyfor7 

They are not wrong, it is just that all states do not require sales tax on shipping and others do.  It is a mixed bag.  I depends on the state.

States Where Shipping is Taxable:

• Arkansas
• Connecticut
• District of Columbia
• Georgia
• Hawaii
• Kansas
• Kentucky
• Michigan
• Minnesota
• Mississippi
• Nebraska
• New Jersey
• New Mexico
• New York
• North Carolina
• North Dakota
• Ohio
• Pennsylvania
• South Carolina
• South Dakota
• Tennessee
• Texas
• Vermont
• Washington
• West Virginia
• Wisconsin
• Wyoming

[the*dog*ate*my*tablecloth]

Spoiler

In some states shipping is taxed only if it is included in price aka free shipping but not taxed if it is broken out.

[lilbama911]

RE:   that's just free money i have to give to the govt. when ebay is a FLEA MARKET. WHO pays sales tax at garage sales and flea markets?

Just to clarify, eBay is an e-Commerce website and not a flea market.  Also when eBay was lobbying diligently against internet sale tax, did you contact your local officials via phone calls and letters asking them not to support internet sales taxes.

Its easy to play Monday morning quarterback.

[mam98031]

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@the*dog*ate*my*tablecloth wrote:

Spoiler

In some states shipping is taxed only if it is included in price aka free shipping but not taxed if it is broken out.

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The list of states above charge sales tax on shipping.  What you are talking about would be those states that do NOT have sales tax on shipping.  Then if they purchase something that is Free Shipping, then yes you are right they are going to pay sales tax on shipping, even though their state laws do not have sales tax on shipping.

States that charge sales tax on shipping, charge it on the stated shipping on a sale.  Each state may have some different rules and if you need to know those, you will have to check the rules for each state.  

For example:  Washington has sales tax on shipping IF it appears on the same invoice / payment that a person makes.  If it appears on a separate invoice, like maybe a trucking company billing someone, then it isn't taxable.  

[chapeau-noir]

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@lilbama911 wrote:

RE:   that's just free money i have to give to the govt. when ebay is a FLEA MARKET. WHO pays sales tax at garage sales and flea markets?

Just to clarify, eBay is an e-Commerce website and not a flea market.  Also when eBay was lobbying diligently against internet sale tax, did you contact your local officials via phone calls and letters asking them not to support internet sales taxes.

Its easy to play Monday morning quarterback.

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Yes - I'd like to ask that of every single person I see complaining about sales tax.  eBay lobbied against this for a long time, they filed an amicus brief and asked members to please contact their congress critters.  I did, many of us did, but did all of these people now complaining about it do it?  I doubt it, or they'd know exactly why tax is being levied now and how it came to be.

Also, I've never seen a price with 'tax included' unless it's in-state because it's impossible to know how much tax to charge for each of the 40,000 tax jurisdictions in this country.

[7606dennis]

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@mam98031 wrote:

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@readyfor7 wrote:

You are wrong. Shipping is NOT taxed.

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@readyfor7 

They are not wrong, it is just that all states do not require sales tax on shipping and others do.  It is a mixed bag.  I depends on the state.

States Where Shipping is Taxable:

• Arkansas
• Connecticut
• District of Columbia
• Georgia
• Hawaii
• Kansas
• Kentucky
• Michigan
• Minnesota
• Mississippi
• Nebraska
• New Jersey
• New Mexico
• New York
• North Carolina
• North Dakota
• Ohio
• Pennsylvania
• South Carolina
• South Dakota
• Tennessee
• Texas
• Vermont
• Washington
• West Virginia
• Wisconsin
• Wyoming

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I believe that you forgot Florida.

[chapeau-noir]

I just noticed that this thread passed its first birthday last month.

 

eBay is still chugging along. 

[alcoforever]

As to the internet tax being the death of ebay, here we are one year later and the stock is hitting new highs today.   Currently at $56.12, up over 3% on the day.  Apparently Wall st. hasn't heard of this internet tax thing.

[davidinnl]

In Europe VAT on used good is only charged on the profit made on selling . If you bought something last year for $100 then sell it for $50 there is no tax. If you sell it for $110 then the VAT is only charged on $10.

If you want to treat me like a business and charge me tax for selling something I should be allowed to take a tax deduction if the sale is for less than I purchased it for.