Paying seller fees on taxes as a NH resident? Legal?

[thiccc]

This seems odd to me. I have never been affected by anything related to tax while conducting business in my state or online. Is it illegal to make me pay fees based on another states sales tax, when in conducting business online in my state of New Hampshire?

If so, eBay is the only place on earth doing this. I should be unaffected by all other states sales tax from what I understand.

[stephenmorgan]

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@thiccc wrote:

Shouldn’t I be unaffected by taxes? Making me

pay a fee based on another states sales tax is like indirectly taxing me. 

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In a way, you have a good point, perhaps #1 b or #2 may apply.  

[monica-sells]

there is 'some' validity to your argument, and the way you are framing it....

but the fee that is charged on collecting the sales tax can be construed as a fee for a service (or can be argued as such)...the 'service' being the conversion of a cc number to negotiable currency and then the disbursement, collection, and filing of said taxes that are required to be collected to complete your out-of-state sale. If you sell your item within the confines of your state, no additional fee is charged......

you can argue it both ways......

[dbfolks166mt]

Ebay doing that for a long time, i don't recall exactly when they start doing that.

EBay along with ALL ecommerce companies started collecting sales tax on interstate transactions after the 2018 US Supreme Court decision in Wayfair vs South Dakota.

https://www.supremecourt.gov/opinions/17pdf/17-494_j4el.pdf 

     Shortly after the courts decision states began passing individual laws related to ecommerce and sales tax collection. The taxes are based on the location of the buyer irrespective of where the seller may be. 

[stainlessenginecovers]

This CANNOT be argued both ways or any way other than this:

Taxes are an amount collected BY eBay on BEHALF of the States that have required eBay to collect said taxes for ANY buyer that lives IN OUR STATE.

FEES are just that- an amount of money that eBay (or any entity depending on what entity being discussed) is charging a SELLER for SELLING on THIS site. 

Those FEES are clearly noted and FULLY transparent at the bottom of any newly created listing as a Blue Underlined (Fees may be charged) and therefore, ANY seller can EASILY see. 

[pburn]

The OP is clearly framing the fee charged by eBay as a tax that is equivalent to one levied by a government, since the argument relies on the fact that the GOVERNMENT of New Hampshire does not assess a sales tax on purchases. 

To attempt to argue or even imply that eBay's fee is a "tax" in the same sense as "sales tax" is disingenuous at best, no matter how many dictionary definitions are posted.

Context, context, context, people.

[richard1rst]

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@thiccc wrote:

By making me pay a fee based on another states sales tax is basically indirectly taxing me.

I should pay fees based on everything except tax, since as a NH resident I am exempt from all taxes except federal.

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BOY are you off base. (I say this as a former NH resident and I still have family there.)

There is the N H Business Profits Tax which is assessed on income from the conduct of business activity within the state. If you are selling on eBay you are responsible for these taxes.

Additionally there is a list of taxes you are or could be subject to:

Business enterprise tax

Communications service tax (shows up on your phone bill)

Electricity consumption tax

Inheritance and estate tax

Local property tax

Rooms and Rental tax (motels, hotels, meals, Hertz, etc)

Medicaid enhancement tax

Real estate transfer tax

State education property tax

Timber tax

Tobacco tax

Utility property tax

Should I go on?

[dnasilver]

Seems like since the ultra rich get more tax breaks and indirectly it is making me pay more taxes.  Why should I have to subsidies their personal jet?

[dnasilver]

So when you leave the state you do not have to pay sales tax? Sorry, but you do.

[dnasilver]

Then do not sell anything outside of your state. It is that simple. eBay is not the only one. Also you claim you only pay Federal Tax. Then why does New Hampshire state this:

New Hampshire does collect: Property taxes that vary by town Auto registration fees A 9% rooms and meals tax (also on rental cars) A 5% tax on dividends and interest

[baydistributionllc]

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@thiccc wrote:

By making me pay a fee based on another states sales tax is basically indirectly taxing me.

I should pay fees based on everything except tax, since as a NH resident I am exempt from all taxes except federal.

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Your not exempt from payment processing fees. That laughable. Go to a NH bank and open a merchant account and you will pay a fee on every penny that goes through it. Ebay isn’t the government and the fee isn’t tax. The fee is for service. Its a service fee not a tax.

[soh.maryl]

eBay's final value fee is charged to the seller and is calculated on the item price, the shipping cost and the state sales tax, if any.

The state sales tax is mandated by an individual state and is to be collected for any shipment to any buyer in any of the 46 or so states that have a state sales tax.  The buyer pays the state sales tax and eBay remits it to the individual involved state.

And, yes, it is legal for eBay to do this.  They are REQUIRED to do it, in fact.

These are two different things.  

If you don't believe that other online venues are collecting this, then perhaps you've not shopped online recently.

Not sure if this is the answer to your question, but please feel free to return and clarify if you wish.

[johnrj1226]

Solution for you only sell to those 5 states that  have no sales tax - you might want to avoid Alaska they  have a "unique" tax system.

When you travel out of NH and buy stuff  you pay taxes of that  state, county, province, country, etc.

[monroe67]

"I should be unaffected by all other states sales tax from what I understand."

What you understand is wrong.  
You are even using the wrong words.

Your confusion and your problem is with eBay's fees. 
You are calling eBay's fees "taxes" when they are not taxes.  They are fees.  
You're not the first to have this problem and you won't be the last.  

The following is how eBay's User Agreement explains its final value fees.  I have separated the three sentences so they are easier to read and, ideally, to understand.

"We charge one final value fee when your item sells, and you don't have to worry about third-party payment processing fees.

This fee is calculated as a percentage of the total amount of the sale, plus $0.30 per order.

The total amount of the sale includes the item price, any handling charges, the shipping service the buyer selects, sales tax, and any other applicable fees."

Read the second two sentences very carefully.  
Another way of saying "total amount of the sale" is "total amount paid by your buyer."

[paumontm_0]

How about federal taxes do you not have to at that?

[greatstuff80]

You want to figure out the sales tax and do all the paperwork for every sale you make in another state? That's the law. It's an enormous undertaking to do that for each states different sales taxes. eBay does all that for you....and sorry do does Etsy and many other sites. That's just one thing the fees cover.