Sales Tax SCAM!

[tottie7777]

What a scam!

Not only is it spurious that Ebay collects sales tax - but it does so in a manner to enrich its' sister Paypal.

The sales tax is collected from the buyer.

Ebay sends that sales tax to the seller at paypal.

PAYPAL DEDUCTS A FEE ON THAT SALES TAX along as a sales total!!!!

Ebay gets the sales tax back to pay the states IF it wants and if anything is due (which is another question/scam).

PAYPAL KEEPS THE FEE ON THE SALES TAX!

YOU PAY FEES FOR EBAY TO COLLECT SALES TAX!!

So one has to calculate the sales tax, add an amount onto shipping or the goods to TRY and cover the ever increasing fee for those sales taxes.

Ebay shoud/could just keep the sales tax and pay it out direct to states. Adding the amount to the sale and allowing its partner Paypal to collect on that amount too is a pure scam. Something has to be done. Class action?

[myboardid]

eBay has been forced to collect sales tax by new state laws that require it to do so. They do not have a choice. Payment goes directly to Paypal from the buyer, eBay cannot take the tax money out first. Paypal charges a fee to process the entire amount they receive, then eBay (by law) takes the tax money out and remits it to the states. They have a company whose job is to handle that money and all the paperwork associated with it and then send it to the appropriate state. This is normal in the business world - whenever you buy from a local store, they have to pay to have your payment processed and then they have to send the tax money to your state.

[pink.fish.rule]

I'm going to assume here that as sellers under MP are NOT paying any processing fees for the sales tax that in those cases ebay does in fact deduct the tax before sending the payment to the processor (somehow).

[myboardid]

One other thing - when you "signed" the eBay user agreement, you agreed to never participate or start a class action suit. In this case, eBay is iron-clad within the law. No lawyer with a brain would take your case.

[kensgiftshop]

Sellers that have been collecting the sales tax themselves have been paying a fee on the sales tax they collect, so why shouldn't everyone else.

[myangelandmyprincess]

---

@kensgiftshop wrote:

Sellers that have been collecting the sales tax themselves have been paying a fee on the sales tax they collect, so why shouldn't everyone else.

---

It’s not the same.  THose sellers only had to collect in states they had a nexus and likely threshold limits were in place as well.  Now any seller who sells to any of these states pays fees.  THe laws purpose was put responsibility on the facilitator to collect in order to allow more taxes to be collect.  To me this is passing on some of that burden onto the individual seller.  I don’t think it follows the nature of the law 

[luckythewinner]

---

---

it does so in a manner to enrich its' sister Paypal

PayPal and eBay have been separate companies for about 5 years. eBay is in the process of setting up a managed payments system to compete directly with PayPal. Calling them siblings is just not accurate.  

Not only is it spurious that Ebay collects sales tax

eBay would be breaking the law if they did not.

PAYPAL DEDUCTS A FEE ON THAT SALES TAX along as a sales total!!!!

PayPal processes the sale tax that arose from your transaction. Just because the law requires eBay to remit the tax instead of you does not mean it was not part of your transaction.

Ebay gets the sales tax back to pay the states IF it wants and if anything is due (which is another question/scam).

IMHO your suggestion that eBay is breaking the law by not remitting sales tax to the States as required has no basis in fact.

YOU PAY FEES FOR EBAY TO COLLECT SALES TAX!!

You pay fees for PayPal to process the buyer's payment. eBay calculates and remits the sales tax because the law requires it to.

Ebay should/could just keep the sales tax and pay it out direct to states.

eBay can't keep money from a transaction that it does not process. It has to be given to eBay by PayPal.

Something has to be done. Class action?

You could choose to sell somewhere else.

A class action would require a legal firm to agree to front the cost of the case. Have you found one?

[Anonymous]

Why are my buyers being charged sales tax when I'm not a business?? I'm just some schmo selling used **bleep** I have laying around. That SHOULD NOT be subject to sales tax anywhere!!! **bleep**?????

[eleanor*rigby]

@_soundman_ wrote:

Why are my buyers being charged sales tax when I'm not a business??

Well, you are a business. You have an online presence, you are offering goods for sale, you are collecting money for selling those goods, you are reporting any income on your taxes. How can you say you're not a business? Someone who sets up a garage sale once a year is not a business. You are.

@_soundman_ wrote:

 I'm just some schmo selling used **bleep** I have laying around. That SHOULD NOT be subject to sales tax anywhere!!! **bleep**?????

Sales/use tax is based on a transaction where goods and money change hands. It is the transaction that is being taxed. It is subject to sales tax in any state that promulgates the appropriate laws.

[eburtonlab]

@Anonymous 

Your buyers' states have decided that any purchase made on a qualifying online marketplace is subject to tax, and now that online marketplace must collect the tax, rather than relying on the buyers to voluntarily pay use tax, as in the past.

[02shadow1100]

Stop selling to these States.

Certain states have enacted economic nexus standards, which requires businesses that have a selling connection to that state other than a physical presence to collect sales tax on remote commerce. These states include:

• Alabama
• Hawaii
• Illinois
• Indiana
• Kentucky
• Maine
• Maryland
• Massachusetts
• Michigan
• Minnesota
• Mississippi
• New Jersey
• Nevada
• North Dakota
• Ohio
• Oklahoma
• Pennsylvania
• Rhode Island
• Vermont
• Washington
• Wisconsin

[wint_5631]

You can't not sell to certain states, and your list needs updated

[eburtonlab]

@02shadow1100 

The current list of states (plus DC) that have enacted Marketplace Facilitator Laws can be found here:

https://www.ebay.com/help/buying/paying-items/paying-tax-ebay-purchases?id=4771#section3

[Anonymous]

I am certainly not a business. I'm a guy selling used personal belongings. I'm not a reseller. I don't purchase new product to sell for a profit. No different listing on eBay than on Craigslist or a local classified ad. I most certainly do not pay taxes as this is not "income". It's my understanding you have sell in excess of something like 20k/year before it's taxable and I'm nowhere near that amount. The selling of used items between individuals should not be taxable. The only case it is, is motor vehicles and the seller does not collect the tax for remittance, the buyer pays the tax to the state when they register said vehicle.

[wint_5631]

You're actually supposed to charge buyers on CL sales tax and remit it or they're supposed remit use (sales) tax to the state.

New laws have been enacted, forcing marketplaces like eBay, Amazon ECT to charge buyers in those states sales tax. If you're really so upset over it, write to state legislators and demand they stop trying to collect sales tax.

And if as a mature adult you're not mature enough not have to resort to using blue language then you should not be on a public forum