New sales tax and exemptions for common folk

[moonbloodstone]

In MN neither clothing or most grocery items are not taxable. Is eBay making the State Taxes to align with those purchases or is there a way to recover Sales Taxes Not collected on those items. I am not talking about exemptions for Charities. 

[ten_o_nine]

I am not sure ebay writes a code for every state, I think it's all in a national database that all can access to determine what's taxable and at what rate..

[fab_finds4u]

I think eBay collects and remits on all the purchases.   You get it back in the form of a tax credit when you pay income tax.   

[nobody*s_perfect]

Exemptions are based on the category that the item is listed in.  If your state doesn't tax clothing then items in the clothing categories won't be taxed.  But for instance a shirt listed in Sports Memorabilia would be taxed.

[mansons2005]

Also, according to a post by an eBay employee you should make certain that your registered zip code includes the additional 4 digits which are used to compute the correct tax. Otherwise you are charged the "blanket" amount for that area.

[mam98031]

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@fab_finds4u wrote:

I think eBay collects and remits on all the purchases.   You get it back in the form of a tax credit when you pay income tax.   

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Not all states have income taxes.

https://www.thebalance.com/state-income-tax-rates-3193320

[johnrj1226]

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@fab_finds4u wrote:

I think eBay collects and remits on all the purchases.   You get it back in the form of a tax credit when you pay income tax.   

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If eBay collects the  sales taxes from the buyer why  in the world would a seller ever get a tax credit on their income tax.  The seller only receives the Item sold price plus any s & h  charge.

[csbbct]

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@fab_finds4u wrote:

I think eBay collects and remits on all the purchases.   You get it back in the form of a tax credit when you pay income tax.   

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@fab_finds4u   Can you clarify what tax credit you're talking about here?

[thehonorabletrader]

@ten_o_nineJust an FYI for you. There is no national database. This is not a national law. In fact, that was the reason SCOTUS ruled in favor of the state.

Each State writes their own laws. They don't communicate and they don't have a common solution. It's not a federal program and the federal government isn't involved. So there are 37 states that collect sales tax. There are 37 different unique laws. eBay must access each one of those 37 bills and ensure they are collecting the appropriate amount for buyers in those states as defined by those laws. It's very complex and annoying.

[luckythewinner]

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@johnrj1226 wrote:

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@fab_finds4u wrote:

I think eBay collects and remits on all the purchases.   You get it back in the form of a tax credit when you pay income tax.   

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If eBay collects the  sales taxes from the buyer why  in the world would a seller ever get a tax credit on their income tax.  The seller only receives the Item sold price plus any s & h  charge.

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I think the poster was talking about the buyer needing to claim a credit on his state income tax, because he is the one who paid tax to the state on an exempt item and deserves the refund.

But that would vary by state, and since I live in a state without income or sales tax, I have no direct knowledge in the matter.

[johnrj1226]

@luckthewinner

Once upon a time &long ago - one could deduct  sale tax  paid off your  feedral income tax as an exemption.  But that died along ago.

If a a seller  buys stuff for resale the can  avoid the  sales tax by having a sales exemption certificate and a copy of this must be file with  eBay.  Think the certificate is  goo for one  calendar year & must be renewed