Sales tax

[larrymajordev]

Is anyone else shocked by the sudden collection of sales taxes on purchases now from any state? Is this someone’s idea of a tax cut?

[bonjourami]

have you read a newspaper or listed to the news in the last two years? The internet user tax has been all over the media for quite a while.

https://www.nolo.com/legal-encyclopedia/50-state-guide-internet-sales-tax-laws.html

[7606dennis · Accepted solution]

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@larrymajordev wrote:

Is anyone else shocked by the sudden collection of sales taxes on purchases now from any state? Is this someone’s idea of a tax cut?

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Actually, sales/use tax has long been levied on buyers from many states.  There are, I believe, only four or five that do not have them and it has always been the responsibility of the buyer to pay them if they apply and have not been collected by the seller.  However, since the Supreme Court ruled that it was constitutional for states to enact laws requiring marketplace facilitators and out of state sellers to collect and remit these taxes, many states have done so in an attempt to collect taxes that were owed but uncollected.  These laws did not increase the taxes owed but only who was responsible to collect them.  Thus they are neither a tax increase nor a tax cut.

[comics-scifi-collectibles]

@larrymajordev  More states are adding  remote sales tax laws all the item.   Right 37 states have passed laws for requiring market places to collect and remit sales tax.  Some of the laws do not go into affect until later this year and next year.  

On June 21, 2018, the Supreme Court of the United States ruled in favor of the state in South Dakota v. Wayfair, Inc. The decision allows states to tax remote sales. The sales tax is charged by the state the item is delivered to for all internet purchases. 

 You will see the sales tax as a separate charge because ebay is the one that is collecting and remitting it as required by law.  

Ebay's list of states that currently have facilitator tax laws:
https://www.ebay.com/help/buying/paying-items/paying-tax-ebay-purchases?id=4771

The market place facilitator tax law explained:
https://blog.taxjar.com/marketplace-facilitator-explained/

[larrymajordev]

Thanks for the clear explanation.

[larrymajordev]

Thank you for your detailed response. This really sucks.

[missy*jaye]

I do not consider myself a retailer but a  reseller.  I pick things up at estate sales, flea markets, etc.  I also sell things that I have had in my home that I no longer want.  As a senior just trying to add a few dollars to my social security benefits, do I have to register to collect taxes starting in January because I live in Illinois?

No one can make you feel inferior without your consent.  ~Eleanor Roosevelt~

[the*dog*ate*my*tablecloth]

If you were following the law for taxes in your State you should probably have been remitting them on your annual State tax return. All this change does (theoretically) is make Ebay responsible for collecting and remitting for you. It's supposed to make life easier for small sellers and consumers. As well as collecting State Sales/Use Tax that was previously owed but not paid.

[disneyshopper]

do I have to register to collect taxes starting in January because I live in Illinois?

No.

Come January 1, 2020, ebay will be collecting the sales tax and remitting to the state of Illinois for all packages sent to a buyer located in Illinois.

I am collecting and remitting California sales tax.  Come October 1, 2019, I will no longer have to do this, as ebay will be collecting and remitting.

[lacemaker3]

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@missy*jaye wrote:

I do not consider myself a retailer but a  reseller.  I pick things up at estate sales, flea markets, etc.  I also sell things that I have had in my home that I no longer want.  As a senior just trying to add a few dollars to my social security benefits, do I have to register to collect taxes starting in January because I live in Illinois?

No one can make you feel inferior without your consent.  ~Eleanor Roosevelt~

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@missy*jaye, once eBay starts to collect and remit sales tax to Illinois in Jan 1, 2020, then you will not need to do anything. eBay will handle it.

If you are currently selling in Illinois, then you probably should have registered with the state to get a sales tax number, and you should have been collecting sales tax for any sales you make that are delivered within Illinois all along.  In most states, there is no distinction between a retailer and a reseller, and tax is still owed on the transaction even if the items are used. That's why thrift stores and secondhand stores charge sales tax on the items they sell.

[the*dog*ate*my*tablecloth]

As of January Ebay will be collecting and remitting taxes for you for anything you sell within Illinois. They are already collecting taxes on your sales to many States that have already implemented Marketplace Facilitator laws.

[7606dennis]

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@missy*jaye wrote:

I do not consider myself a retailer but a  reseller.  I pick things up at estate sales, flea markets, etc.  I also sell things that I have had in my home that I no longer want.  As a senior just trying to add a few dollars to my social security benefits, do I have to register to collect taxes starting in January because I live in Illinois?

No one can make you feel inferior without your consent.  ~Eleanor Roosevelt~

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Alas!  whether you consider yourself  a retailer or not, if you are reselling things online to the end user, you may very well be an online retailer in the eyes of your state.   

By the way, having been a resident of Illinois you have my sympathy regarding that state's taxing ideas.

[california.lady]

Hi there - sales tax is a state levied tax on purchases, not a federal levied tax.  Tax cuts do not involve state sales or excise tax on purchases and/or services.    States have been for some time, going after internet based companies to ensure sales tax laws were changed and begin to apply to online sales.  Those days when internet sales did not include sales/excise tax, if any, are going away.

[morggan123]

I'm probably more dumb than I thought and I will be grateful if anyone can educate me on this matter. I've been reading the eBay page on sales tax. It says that, as a seller, I am responsible for charging sales tax and it explains how to set up a tax table for buyers. But below that text, there is a table with dates in which eBay will begin collecting on behalf of sellers. So now I am confused. What happens with the tax table that a seller created? Do I have to remove taxes because otherwise the buyer will be taxed twice (by me and by eBay)? 

[reallyhardtofind]

This terrible news, This is how the system works these days, I pay tax on my sourced then I pay tax on my income then the buyer pays import tax and now state tax. LOL this will almost kill internet sales and most certainly revive yard sales and flee markets. Cash is king. We must not let these scum bags take our cash.