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New Sales Tax will be a BIG issue...........

for me atleast.  Folks that say this won't be a big issue and everyone is making a big deal out of nothing I think they're wrong.    I'm not a huge seller, but I sell enough to know that it WILL be an issue for me, since over the years I bought a lot of items on Ebay to resell for a small profit.   If this goes into effect, an item from out of state that would currently cost me $100, but after this passes it will be anywhere from $113.00 to $103.00 with an average around $107.   I know this doesn't sound like much, but after paying Ebay their 10% and Paypal 3.5% the profit margins are low and now I will have to tack on another variable tax rate amount to my products cost.

 

Also, I know that if this passes I won't be buying as many items, since my wages haven't increased and this will just be another amount that will be taken away from my discretionary income.  I think this will hurt online sales to what extent I don't know.

 

Anyways, I hope it turns out for the best, but I don't think it will and most small sellers will be the ones hurt the most.  This is about helping the multiple billionare type companies while causing the small mom and pop online sellers to close up shop.

Message 1 of 193
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192 REPLIES 192

Re: New Sales Tax will be a BIG issue...........

Even though I know I would never meet the minimum dollar amount  for any state, the item count is not out of the realm of possibilities.  That is why I have this on the front page of my eCrater store.  And if I ever set up a full fledged Web site myself, it will be posted there as well.

 

And most importantly; because I am a resident and operate solely out of Oregon; no matter where you reside, I will not charge sales tax no matter what other states or countries may try to demand.

 

 

If it works, sell it. If it works well, sell it for more. If it doesn't work, quadruple the price and sell it as an antique.

-- Ferengi Rule of Acquisition #80
Message 16 of 193
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Re: New Sales Tax will be a BIG issue...........


@tarbucky wrote:

Colorado's new law going in to effect on December 1, 2018, is so scary I'm turning Colorado off on my website and I don't know what we'll do with ebay and Amazon.  We have to charge tax according to where the package is delivered.  That is hundreds of jurisdictions.  Plus, many are called home rule cities or towns, so each of those require a separate tax filing.  and I'M IN COLORADO!  What will we do??? Definitely turn Colorado off on the website.  Maybe Hire TaxJar for the other two?  Have you seen any more info on this anywhere?  I can find nothing.  I could care less about people buying on ebay for resale on Amazon and losing three dollars.  I am a legitimate business who will lose sales and besides that, how do you charge tax after the fact, file hundreds of forms every month (NO WAY).  Would love some insight from other people.


If you are in Colorado then you should be already collecting sales tax for that state.  You are breaking the law right now.  You need to call the office that takes care of sales tax and get the info you need to get yourself into compliance.  They will tell you how to go about it. 

----------------------------
Successful and experienced seller since 1997, over 70,000 feedback, boardie since the boards were begun.
Message 17 of 193
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Re: New Sales Tax will be a BIG issue...........

If ebay collects taxes this is a moot issue....However if they do not collect taxes for small sellers then My BIG question is how will they enforce it??  How can another state compel a citizen of a different state to do that which his state doesn't require?   Will out of state cops come and get you where they have no jurisdiction? Will they call your local police to arrest you and then turn you over to the other state if you just refuse to pay them?

 

Personally, I think the most likely option is that  ebay may have an arrangement with every state where their Attorney General gives your name to ebay and then ebay BLOCKS your ability to sell until you pay that state what they think you owe them. That is what I think may happen if ebay decides not to collect taxes as I don't really see how any state can enforce collection.

 

Remember everything ebay has pretty much done in the past  is for the benefit of BIG sellers and and if BIG sellers have to collect taxes whereas little sellers do not, then the BIG sellers will lobby ebay to make sure all sellers must pay taxes on EVERY purchase so that we small sellers will not have  a competitive advantage. Take it to the bank

Message 18 of 193
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Re: New Sales Tax will be a BIG issue...........

Correct-- you pay sales tax when you go to the store for the state the seller is based in-- not the buyer. why is it different for internet sales. Tax should be based on where seller is from. would make it so much easier.

Message 19 of 193
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Re: New Sales Tax will be a BIG issue...........


@hollyd7770 wrote:

Correct-- you pay sales tax when you go to the store for the state the seller is based in-- not the buyer. why is it different for internet sales. Tax should be based on where seller is from. would make it so much easier.


Right.   I did not reach out to some buyer in  New York, they came to my eBay store that is operated in Washington.  If the New Yorker actually came to Washington, he would pay WA sales tax on any purchases.  So when he buys from my eBay store he is virtually coming to Washington, and so should pay WA tax. 

 

Of course the real, simple solution would be for Congress to establish a national, uniform online sales tax that every seller would collect and submit to his or her own state.  Then every state would benefit and sellers would have only one tax return to submit.

List more, sell more. Goodwill that other, uh, stuff.

Feeling sleepy? There's an app for that.
Message 20 of 193
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Re: New Sales Tax will be a BIG issue...........


@activemerchandie wrote:

for me atleast.  Folks that say this won't be a big issue and everyone is making a big deal out of nothing I think they're wrong.    I'm not a huge seller, but I sell enough to know that it WILL be an issue for me, since over the years I bought a lot of items on Ebay to resell for a small profit.   If this goes into effect, an item from out of state that would currently cost me $100, but after this passes it will be anywhere from $113.00 to $103.00 with an average around $107.   I know this doesn't sound like much, but after paying Ebay their 10% and Paypal 3.5% the profit margins are low and now I will have to tack on another variable tax rate amount to my products cost.

 

Also, I know that if this passes I won't be buying as many items, since my wages haven't increased and this will just be another amount that will be taken away from my discretionary income.  I think this will hurt online sales to what extent I don't know.

 

Anyways, I hope it turns out for the best, but I don't think it will and most small sellers will be the ones hurt the most.  This is about helping the multiple billionare type companies while causing the small mom and pop online sellers to close up shop.


From the buying view, it won't bother me much.  Some tax is needed for the states to maintain the basics, like roads and bridges.  I just read an article in the local paper about the number of counties in my state that are on the brink of collapse.  Not enough income to cover expenses.

 

Billionaire BigCorp's have already taken over the internet.  That started 11 years ago now, when us little guys got pushed aside. 

 

Do the likes of Target, Best Buy, Microsoft, etc really need to be selling here on lil ol ebay?

 

Message 21 of 193
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Re: New Sales Tax will be a BIG issue...........

It's an automated collection of Use Tax. That's why it is based on the buyer's location. The States tried to get buyers to remit voluntarily but it didn't work.

 

Message 22 of 193
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Re: New Sales Tax will be a BIG issue...........

Fwiw, at this point the SC (Wayfair v. SD) only allowed for collection of sales taxes on businesses with $100k+ in sales to the state, so whether these significantly lower limits popping up are allowable is an open question. My guess is that we'll see the next congress pass a bill that cleans up some of the mess. 

Message 23 of 193
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Re: New Sales Tax will be a BIG issue...........

Why don't they just leave it alone

Message 24 of 193
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Re: New Sales Tax will be a BIG issue...........

Actually, you have probably always been liable for use tax on items that you've had shipped into your state.  

"It is an intelligent man that is aware of his own ignorance."
Message 25 of 193
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Re: New Sales Tax will be a BIG issue...........


@dec56usa wrote:
Why don't they just leave it alone

Actually, all states require some form of income in order to provide the infrastructure needed by their residents.  Many charge a sales/use tax in order to gain revenue.  Sales tax is not some new form of tax.  Those that claim it to be something that they suddenly have to pay are, in reality, admitting to not paying use tax which they should have been paying all along.

"It is an intelligent man that is aware of his own ignorance."
Message 26 of 193
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Re: New Sales Tax will be a BIG issue...........

Same for me. I buy antiques that are usually in the $80-$100 range. Now say I buy something and have a $100 budget. Now my spending power will not be the same and my usual $100 to spend for a certain range of items turns into only $90. If the items I buy are commonly sold for $100, and my budget is only $100 and not one penny more, I will not be able to factor in another $10 in tax.

 

This is going to hurt some sellers and I will be buying much less.

Message 27 of 193
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Re: New Sales Tax will be a BIG issue...........

I live in Washington.  I just got charged sales tax for the first time.  I'm NOT buying from eBay again.  

Message 28 of 193
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Re: New Sales Tax will be a BIG issue...........

People in Washington are going to be paying use taxes everywhere not just EBay. This is a State law. Are you going to start bartering with turnips?

Message 29 of 193
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Re: New Sales Tax will be a BIG issue...........

Is eBay's new sales tax based on the shipping address or the billing address?

 

Thank You,

Message 30 of 193
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