State sales tax

[jmbmh1]

How is it that Colorado has a 2.9% sales tax, yet eBay charges about 8%. Surely they do not collect sales tax for every municipality in the state? There is state sales tax, the county sales tax, and local municipality sales tax (the city you are in). Do they have a license to collect tax $ only from the state,  or do they have one for every municipality to go with it? If it is the later, it has to be a nightmare! They also receive a stipend from the state to collect these fees, and as a seller we have to pay our final value fees on those taxes too. Seems like eBay like to double dip?

[stainlessenginecovers · Accepted solution]

They collect the tax required for the Zip Code that the person resides in. For those that use only 5 digits, they may get charged a bit more or less, but all should use the 9 digit code to be precise. 

As far as 'license'; 1 license covers the entire state. The report will show the 'counties' that tax was collected in and gets dispersed out from the state at that point. 

[maxine*j]

The sales tax that is collected and remitted is based on the buyer's Zip Code so, yes, the amount can vary from one place to another in the same state.

eBay, along with Amazon, Etsy, et al, fought it tooth and nail for years but finally a United States Supreme Court decision -- South Dakota v. Wayfair, Inc. [138 S. Ct. 2080 (2018)] -- made it possible for states to demand that such "marketplace facilitators" collect and remit state sales taxes.

Some states give those who collect and remit sales tax a small percentage for doing so;  others, do not. 

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[katzrul15]

From what I could find online:

State State Sales Tax Rate   -   Combined Sales Tax Rate

Colorado	2.90%	7.72%

Shows a local sales tax of 2.90% and a State Combined of 7.72%

[winterpalace25]

When the Wayfair decision happened I was so relieved to hear that ebay and Amazon would take care of the sales taxes and we wouldn't have to.

Another reason I was glad was that I was probably the only person in America who paid my state use tax for internet purchases. At the bottom of my state income tax form, you had to declare under threat of perjury if you bought stuff online and didn't pay sales tax. I always added up my large purchases from places like Wayfair, Amazon and eBay, and paid the tax. Starting last year, sales tax was charged, collected and remitted on my online purchases and I no longer have to figure out my use tax.

[friskya]

Be thankful that the only thing they're demanding right now is sales taxes. I'm pretty well certain that as soon as they can figure out how to do it, the various states that have an income tax will try to claim that sales to their residents represent taxable income to the seller for that state and demand payment for that, as well. (It'll probably be California that tries it first)

[zalar_3918]

It's been a while, but this is one of the biggest things Jake Jabs had a complaint about - he said in an interview that he's got a separate room just for auditors to come in for all these different sales tax districts.

My understanding, especially with AFW, is that they don't collect sales tax on where the sale was made (in the warehouse for example), but where it is delivered 22 savage 

[luckythewinner]

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@winterpalace25 wrote:

When the Wayfair decision happened I was so relieved to hear that ebay and Amazon would take care of the sales taxes and we wouldn't have to.

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When the Wayfair decision happened I was relieved to find that virtually every state had a threshold that I was nowhere close to meeting - so I would not have to collect or remit any sales taxes to any state.

So I was disappointed to hear that eBay was going to collect and remit those taxes, because that just makes my items more expensive. 

[maxine*j]

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@zalar_3918 wrote:

...  My understanding, especially with AFW, is that they don't collect sales tax on where the sale was made (in the warehouse for example), but where it is delivered 22 savage 

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Sales always is, and always was, based on the buyer's location (not the seller's).

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[nobody*s_perfect]

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@luckythewinner wrote: ... When the Wayfair decision happened I was relieved to find that virtually every state had a threshold that I was nowhere close to meeting - so I would not have to collect or remit any sales taxes to any state....

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The law applies to "Marketplace facilitators" such as eBay. So what counts is eBay's total sales to that state, not the sales of individual sellers.

[maxine*j]

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@luckythewinner wrote:

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@winterpalace25 wrote:

When the Wayfair decision happened I was so relieved to hear that ebay and Amazon would take care of the sales taxes and we wouldn't have to.

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When the Wayfair decision happened I was relieved to find that virtually every state had a threshold that I was nowhere close to meeting - so I would not have to collect or remit any sales taxes to any state.

So I was disappointed to hear that eBay was going to collect and remit those taxes, because that just makes my items more expensive. 

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I understand that, but there is no doubt in my mind that had the SCOTUS decision not allowed the current system, all the states would have dramatically lowered their thresholds and demanded that every seller somehow collect and remit sales tax. 

There were billions of dollars at stake.  The states had been losing massive amounts of revenue to on-line sales and they actually had a repsonsibility to their own residents do something about it. 

There were even a few bills at the federal level to address the issue, brought by Congressmen whose states were bleeding sales tax, although the bills hadn't got very far and were happily abandoned when the SCOTUS decision came down.

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[maxine*j]

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@maxine*j wrote:

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@zalar_3918 wrote:

...  My understanding, especially with AFW, is that they don't collect sales tax on where the sale was made (in the warehouse for example), but where it is delivered 22 savage 

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Sales always is, and always was, based on the buyer's location (not the seller's).

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Duh.  Makes that "Sales tax is, and always..."

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[greenboxfinds]

I cannot find any kind of record of ebay's collection of sales tax on my sales. Where is it detailed? I've been combing the Seller Hub, My ebay Selling and Seller Dashboard and can't figure out where it is. I found it last year, but I'm lost now.

[firesteel_surplus]

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@maxine*j wrote:

The sales tax that is collected and remitted is based on the buyer's Zip Code so, yes, the amount can vary from one place to another in the same state.

eBay, along with Amazon, Etsy, et al, fought it tooth and nail for years but finally a United States Supreme Court decision -- South Dakota v. Wayfair, Inc. [138 S. Ct. 2080 (2018)] -- made it possible for states to demand that such "marketplace facilitators" collect and remit state sales taxes.

Some states give those who collect and remit sales tax a small percentage for doing so;  others, do not. 

=

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I'm in SD and I am going to tell you that was a fight here. IIRC...this originally started a few years before the Supreme Court decision with something that was put forth to the people to vote yay or nay and it was soundly defeated. So then SD (like usual if they lose a vote on something they want really bad) got around the vote and put this law in effect anyway...which led to the Supreme Court battle. I didn't research this at all and some of this might be getting mixed up in my hazy memory when the mary-wana fight was going on too.

So for all you tax haters getting charged another 12.55% on top of that. You are welcome from a seller in South Dakota.

Mike

Firesteel Surplus

PS...and for your info...I voted NAY on the bill. NAY was against and YAY was for.

M

[monica-sells]

One place is under the Performance Tab -----> Sales

Set your date and Generate Report

(If you download in Excel it is in column G)