Sales tax . . . the problem has begun

[k-mansparts]

SCOTUS  has ruled 

the problems will be enormous 

[goodluckselling]

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@tealt wrote:

Don’t count on Congress doing anything very soon.  This is an issue that could be argued about forever.

Also, don’t assume that small sellers aren’t “registered businesses”.   I am about as small as you can get on eBay, but I have a city business license and a state sales tax resale number.

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Oh I agree it will be some time and I have posted this a few times in this thread.

I also do not assume small businesses are not registered businesses.  Actually I have said small businesses usually have employees.

Good Luck Selling!

[abfabvintage]

My question, if not presented before: did/has eBay a back up plan considering this current SCOTUS ruling? All I read was eBay sent a cadre of sellers to Washington? What was the end point of that meeting? I think I already know: no plan. Just like no plan re: same day changes to the site. 

[craigstevensstudio]

this is bad...  why?  the states are just chomping at the bit to collect these taxes. (but here is the REAL RUB)   they will be able to charge  high tax rates and not worry about getting voted out of office.....think about that for a second...how greedy do you think they will get when their butts are not on the line.... ya i read the 100,000  or 100 items will not have to worry about this...(but  for most small sellers 100 items at say 3 dollars a item is easy to get too.  (so if  you sell 100 - 3 dollar tiems  now you have to pay and track these taxes?    now we get to have 50 times more chances (50 states) of getting tax audited!     THIS IS GOING TO KILL SMALL SHOPS ON TONS OF SIGHTS ACROSS THIS COUNTRY.

[the*dog*ate*my*tablecloth]

From the PA law that is already being in place, they will be charging the marketplaces. That means sites like Etsy and Ebay will be responsible, not the individual sellers. As far as individual sellers on their own sites, PA only expects sales tax to be collected and remitted when the site sells over 10K to PA residents.

Most sites use some kind of payment processor so it's quite possible the shopping carts will build this software in for their website customers.

[dadsfloridatreasure]

And let's say you're an eBay seller from Chicago.  Their sales tax rate currently is 10.25%.  Sellers there might as well move out now because they won't be able to compete against someone selling the same item, for the same price in Florida where it's 6%. 

Consumers and small sellers are the only one's that will be negatively impacted by this.  Larger and more corporate businesses already get huge tax breaks that they will only just pass this tax onto us in higher prices for items.

[craigstevensstudio]

this is bad... why? the states are just chomping at the bit to collect these taxes. (but here is the REAL RUB) they will be able to charge high tax rates and not worry about getting voted out of office.....think about that for a second...how greedy do you think they will get when their butts are not on the line.... ya i read the 100,000 or 100 items will not have to worry about this...(but for most small sellers 100 items at say 3 dollars a item is easy to get too. (so if you sell 100 - 3 dollar tiems now you have to pay and track these taxes? now we get to have 50 times more chances (50 states) of getting tax audited! THIS IS GOING TO KILL SMALL SHOPS ON TONS OF SIGHTS ACROSS THIS COUNTRY.

[the*dog*ate*my*tablecloth]

It's a pretty safe bet the sales tax will be assessed by the buyer location since the seller won't have a location in the state charging the sales tax.

[mimare7]

Thank you for the reply. I'll wait and see what happens, but since Congress moves very slowly (if at all), I won't hold my breath for a resolution in the near future.

[1786davycrockett]

Some states charge a sales tax -- and some don't.

And some states charge sales tax on clothing, food, newspapers, non-tangible services, and so on -- and some don't.

And some individual counties in some individual states charge an ADDITIONAL sales tax, on top of the state sales tax -- and some don't.

And some individual municipalities in some individual counties charge an ADDITIONAL sales tax, on top of the county sales tax and the state sales tax -- and some don't.

And some individual metroplitan areas within some some gatherings of counties charge an ADDITIONAL sales tax, on top of the municipal sales rax, the county sales tax, and the state sales tax -- and some don't.

So, how is eBay (much less the poor, ignorant seller) going to figure out WHICH combination of sales tax factors is going to be considered, for each and every sale in each and every American community?

Depending upon where I am standing at any particular time in Minnesota, the sales tax will be as low as  6.875, or as high as 8.375 -- and sometimes it will be different, right across the street!

Oh, THIS should be FUN. . ..

[tyler@ebay]

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@tealt wrote:

@trinton

Question #1:

What will US eBay sellers now need to do about collecting sales tax for sales in states where they do not have a physical presence?  

Question #2:

When can sellers and buyers expect eBay to comment on this Supreme Court decision?

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Hi @tealt - We have a statement about the decision here. 

At this point, you don't need to do anything. But in the coming months, we expect to have more information and eBay will help provide updates as the legal landscape becomes clearer. Thanks!

[1ezdeal]

that will be $100,00 or 200 items to a single state so even if you sale 10000 a year and dont go over the $100,00 or $200 items to a single state you wont be required to pay taxes to that state, you will only be require to pay taxes if you sale more than $100,00 or 200 items to a single state

[1ezdeal]

That is wrong, the law in PA is that if the market place has a presence in PA they have to collect taxes from their third party sellers, since amazon has werahouses in PA they have to collect the taxes but ebay does not have any typen of presence in PA so ebay sellers are not required to collect taxes for sales to costumers in PA.

[strawberryichigo]

sad.. as I was just getting started and having a lot of fun too. I really think I missed a golden era. I was too young tho

[the*dog*ate*my*tablecloth]

They can either elect to collect sales tax or they can send a reckoning to every single person they sell to after the sale and on an annual basis telling them what they owe in use tax. 

IMHO it's much simpler to collect and remit the tax. Since Etsy and Amazon are already doing it, we can reasonably assume this is the way it will go.

[1ezdeal]

Amazon has to collect the taxes because they have a presence in every single state but ebay does not so that does not apply to ebay because ebay only has offices in 2 states