Ohio Sales Tax

[lakeside-collection]

I need to start collection sales tax in Ohio. (we now have a psychical presence in the state) The tax table eBay provides only allows me to set a single rate. But in Ohio I have to charge based on where the buyer lives. So there could be 100s of rates. How can I collect the correct amount. 

[divwido]

Sounds like California.  The only way is to be there when the invoice is sent.  Otherwise you get to pay any difference.

[thevintagesilvershop]

Had same thing when I was in Minnesota. Charged my county rate which is about the highest in the state and also reported it that way. I was audited in 2012 by state dept of rev where they pointed out that it was supposed to be collected by ship to county. 

I explained that, as far as I was concerned, the person came into my virtual store in Hennepin Co and that justified what I charged. The auditor looked at me for a long moment and responded that he guessed if a person was overcharged, they could ask the state for a refund. That’s all that was said and I kept on charging that way until I left the state. 

State was getting more more money in their pockets, I can understand why they let it go. 

I think you set set up the process that works for you with the tools you have and only worry if you should get audited. 

[duchess-at-speakeasy]

I have the same problem in Washington ... there are 39 counties and at least 17 different rates. I just pick a happy medium. One or two sales a won't kill me!

~~C~~

[dougsue123b]

Glad I am in tax free oregon, that tax collecting stuff sounds like a PITA.

[packratville]

It is! It's the same here in Florida with additional discretionary tax in many of the counties. Florida residents who purchase from me pay the state rate of 6%, and I pay any additional discretionary tax if there's a difference in the rates. I'm a low-volume seller with few sales in Florida, but I still dread figuring it out every quarter.

[7606dennis]

We have a similar problem in Florida.  To avoid committing the criminal act of collecting more tax than is rightfully owed by the customer, I charge the base rate of the state's sales tax  which is 6% and cover the local option portion myself.

[thevintagesilvershop]

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@7606dennis wrote:

We have a similar problem in Florida.  To avoid committing the criminal act of collecting more tax than is rightfully owed by the customer, I charge the base rate of the state's sales tax  which is 6% and cover the local option portion myself.

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It’s only criminal if you charge more and keep it. 

[b86fiero]

Depending upon type of business license you have, you may be able to collect and remit sales tax to the state based on your county tax rate.

Call the Treasurer of State or your local county treasurer office for clarifcation.

Rules have changed greatly over the years regarding online sales. 

[Anonymous]

How do we know the tax that is charged the buyer actually gets paid to the state, could be another way for the seller to collect extra money. I can see if you have a store but an individual selling an item, thats sketchy

[the*dog*ate*my*tablecloth]

It would be a felony to collect sales tax and not remit it to the state.

Ebay is taking over tax collection from sellers. Ohio’s Marketplace Facilitator law became active in September.

[victoriaframes]

Does that mean as a seller with an Ohio vendors license, I do not have to file my sales tax with the state?

[fab_finds4u]

https://www.ebay.com/help/buying/paying-items/paying-tax-ebay-purchases?id=4771&st=2&pos=2&query=Pay...

Beginning Sep 1 eBay collects and remits the sales tax to Ohio.  The seller doesn't touch the money.  PayPal takes it from the buyer and sends it directly to eBay Inc.  

[fab_finds4u]

The seller doesn't get the tax money. PayPal sends it to eBay. And it's not sketchy for a seller to have a resale license in their state and not have an eBay Store. Having an eBay store subscription isn't the qualifier.

[mam98031]

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@lakeside-collection wrote:

I need to start collection sales tax in Ohio. (we now have a psychical presence in the state) The tax table eBay provides only allows me to set a single rate. But in Ohio I have to charge based on where the buyer lives. So there could be 100s of rates. How can I collect the correct amount. 

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It doesn't matter for you on Ebay or any other site that is deemed to be a Marketplace Facilitator.  Ebay will not allow you to collect taxes for Ohio, they will do that and remit it to your state.  The MFLs [marketplace facilitator laws] require Ebay to do this.  You will be blocked from being able to collect sales tax on this site.

So now that makes your life a lot easier.  But make sure you check with your state as to how you need to report your retail sales to them and take the deductions for when Ebay [or other marketplace] collects and remit the tax.  Each state has its own rules.  So keep good records and make sure you adhere to the requirements of your state.