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.

[kevincal20]

This tax **bleep** could not have come at a worse time. The past year or 2 almost everyone has had a hard time selling like they used to. the mainstream media has been lying about how good the economy is. The TRUTH is the cost of living is skyrocketing for everyone the past few years in rental prices, home prices, fuel and food prices, etc. meaning, less people have less money to spend on ebay goods, its just that simple.

and now here we have taxes added to almost all ebay sales now. surely this is pissing almost almost all buyers who are not used to paying tax when they buy on ebay.

I would say most ebay sellers are barely making it, barely scraping by these days. Just like your average person is barely able to afford rent now. Its starting to get to me how bad things are getting in society, its just not right. Almost everything is a rip off now, how did it get to this..... depressed.. 😞

[the*dog*ate*my*tablecloth]

But the people who sell locally like your local bakery or hardware store were unfairly disadvantaged. Why would it be fair for local businesses to deal with taxes and strangers on the internet not?

Regardless the only people this affects are tax avoiders who were supposed to be paying use tax on out of state purchases but weren’t.

[yuzuha]

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@the*dog*ate*my*tablecloth wrote:

But the people who sell locally like your local bakery or hardware store were unfairly disadvantaged. Why would it be fair for local businesses to deal with taxes and strangers on the internet not?

Regardless the only people this affects are tax avoiders who were supposed to be paying use tax on out of state purchases but weren’t.

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EXACTLY.  SMH at all of the people who are crying about not being able to cheat on their taxes anymore.

[jojitsusensei]

I read these boards and see so many people complaining about no sales. eBay is forced people to raise their prices and inflate their shipping prices to cover eBay's outrageous fees. Now add the sales tax on top of it, especially on used items, might as well buy something new from a store.

[the*dog*ate*my*tablecloth]

The things I buy on eBay I can’t get at a local store. The other things I buy on Amazon and pay tax. So it’s no different to me.

[petergottlieb]

For me and many of the things I buy, ebay has been slightly cheaper. But now, it is slightly more expensive. Why? I believe that sellers have intentionally priced to just under market with consideration of the lack of sales tax. What may happen now is that sellers reprice items slightly lower to once again come in just under market. This along with usual demand elasticity will work to lower seller margins as well as raise prices to buyers. This is consistent with the general effects of taxes. I would like to see the actual price shown, before hitting "buy it now" and committing to the purchase.

[mansons2005]

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@petergottlieb wrote:
For me and many of the things I buy, ebay has been slightly cheaper. But now, it is slightly more expensive. Why? I believe that sellers have intentionally priced to just under market with consideration of the lack of sales tax. What may happen now is that sellers reprice items slightly lower to once again come in just under market. This along with usual demand elasticity will work to lower seller margins as well as raise prices to buyers. This is consistent with the general effects of taxes. I would like to see the actual price shown, before hitting "buy it now" and committing to the purchase.

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Oh, you mean like in the grocery store - where you pick up a jar of peanut butter and the price sticker read $2.89, and then a little screen flashes on and shows you the total with the taxes added in? Yeah, that way you know the total price before you get to the checkout and "commit to buy"........................

Sorry to be snide, but seriously, are people not familiar with the tax rate they pay in brick and mortar stores? Taxes they have been paying for most of their consumer lives? Is it any different when buying online when you are aware that taxes apply?

[mam98031]

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@jojitsusensei wrote:

I read these boards and see so many people complaining about no sales. eBay is forced people to raise their prices and inflate their shipping prices to cover eBay's outrageous fees. Now add the sales tax on top of it, especially on used items, might as well buy something new from a store.

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That is quite a bit of an over statement.  It's important to keep in mind that some people just don't like to pay fees at all no matter if they are reasonable or not.  

Sales tax is NOT an additional cost to seller and it should not be anything any seller is considering in their pricing.  Sales tax is NOT paid by the seller, it is paid by the buyer.  Sales tax is NOT an additional cost to a seller.

If your state has an exemption on sales tax for used items or any other exceptions for certain types of items, make sure your zip code on your delivery address is the full 9 digits.  99999-1234  That will help enable the software to properly identify exactly where you are at and apply the appropriate sales tax.

[mam98031]

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@petergottlieb wrote:
For me and many of the things I buy, ebay has been slightly cheaper. But now, it is slightly more expensive. Why? I believe that sellers have intentionally priced to just under market with consideration of the lack of sales tax. What may happen now is that sellers reprice items slightly lower to once again come in just under market. This along with usual demand elasticity will work to lower seller margins as well as raise prices to buyers. This is consistent with the general effects of taxes. I would like to see the actual price shown, before hitting "buy it now" and committing to the purchase.

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I've been here a long time and I've never priced my items that way.  Other sellers that I know quite well also do not price their stuff that way.

Maybe some sellers do, but I doubt it is a regular thing for many.

Sales tax never even enters the equation on pricing an item for me.  I don't know why any seller would consider it.

[bassflute]

I quit ebay, now charging tax's on garage sale items, food, china purchases, you name it, the seller never sees the money, ebay keeps it, it's fraud at this level, **bleep** YOU ebay greed **bleep**S...

[mam98031]

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@bassflute wrote:

I quit ebay, now charging tax's on garage sale items, food, china purchases, you name it, the seller never sees the money, ebay keeps it, it's fraud at this level, **bleep** YOU ebay greed **bleep**S...

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@bassflute 

You are a little misinformed on this subject.  Ebay has not taken it upon themselves to collect sales tax for certain states.  Laws have been passed by these states to REQUIRE Ebay to charge sales tax and remit it to these states.  I don't know how you feel that "Ebay Greed" plays into this at all.  They are adhering to the law.  Where is the "fraud"?  How are they being greedy?

The greed would come from you expecting Ebay to send you the money.  That would break the law too as they are suppose to send it to the appropriate states.  Why in the world would they send it to the seller?

[bassflute]

I just tried to buy a Trumpet, it had a $46.00 sales tax, it was a USED horn, garage sale item, seller NOT in business to sell stuff all the time, just a musician getting rid of a horn, he DID NOT list sales tax, nor does he get the money, ebay SUCKS, I'm never coming back to this moronic managed company, also my food powders are now taxed, wheatgrass etc., ebay is GOING DOWN HARD, you imbeciles SUCK...

[mam98031]

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@bassflute wrote:

I just tried to buy a Trumpet, it had a $46.00 sales tax, it was a USED horn, garage sale item, seller NOT in business to sell stuff all the time, just a musician getting rid of a horn, he DID NOT list sales tax, nor does he get the money, ebay SUCKS, I'm never coming back to this moronic managed company, also my food powders are now taxed, wheatgrass etc., ebay is GOING DOWN HARD, you imbeciles SUCK...

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@bassflute 

Every single seller on Ebay is conducting business.  Each transaction is a business transaction no matter how the buyer or seller views the transaction.  There are NO personal transaction on Ebay.

If you were to look at the shipping page on the listing you purchased from, you would have seen this part about sales tax.

So while you didn't notice it, it was stated on the listing.  And the link takes you to a full list and description of sales tax.

You are correct, the seller does not get the sales tax paid to them.  Ebay is required BY LAW to collect and remit the sales tax for certain states, which you will find a list of those states in the link available to you on the listing.  

If you are upset about paying sales tax, which clearly you are, you need to take it up with the state representatives of the state you are in.  They are the ones that passed the law that requires Ebay to collect and remit the taxes.  Your anger is placed in the wrong place.  Ebay nor your seller have ANY fault in this matter.

[nichd10]

The sales tax thing pretty much stopped my ebay activity... other than little ticky tack things. Not ebays fault; however they should have had an army of lawyers fighting this. Used items that were taxed when sold new should NEVER be taxed again. 

[southern*sweet*tea]

::general reply::

For everyone who is concerned about paying sales tax on Ebay, I have the solution. Seek out and shop with SMALL sellers who live in states without a market facilitator rule. Those would be the states shown in grey.

Now, be advised that if the seller reaches a certain threshold of sales into your state for the previous year, they WILL be required to collect sales tax on your purchase. That threshold could be as low as $10k all the way up to $500k. For example, in my state (MS) I would be required to collect tax on you if my previous years sales volume to your state is in excess of $250k. (ain't gonna happen ever lol) Buy from ME and I won't collect sales tax on your purchase, I promise.

This does NOT mean that you get out of paying sales tax. It is still supposed to be reported on your annual state income tax form in the area for out of state purchases. You know...that space on your tax return that you should have been filling out all along...unless you're a tax cheat.