Taxes

[froggman180]

I want to start by saying that my eBay account is solely for selling items of mine that I no longer need or use. Can anyone tell me why eBay taxes the buyer of my items and also taxes me when the buyer pays me. I know the government’s new policy of taxing me when someone sends me money (over $600 for the year) might be a factor in this. To me this is very illegal. I paid taxes when I originally bought my items. I am not a store, I am not making a profit especially on items that have depreciated. I do not think this is right or legal to tax me or my buyer for me selling my used personal items. Somebody please explain this to me in real simple terms exactly like you would explain it to a child.

[maxine*j]

---

@fern*wood wrote:

Wow, my right leaning bright red state of West Virginia started sales tax...who knew.  This is such an educational board with smart posters!!!

---

Here in PA, we've had sales tax since 1953, and it is currently 6%.  We've had personal income tax since 1971.

Actually, way back in PA history we had something that was sort of a personal income tax.  It was called a "faculty tax," was enacted in 1782, and was a tax based on the assumed income of a person by his occupation.  Weird and arbitrary, eh?

Our state income tax is a flat tax on gross taxable income, with no exemptions, and that is based on the PA Constitution.  Right now, it is 3.07%.  Anyone with a taxable income of more than $33 must file a return, even if no tax is due on it, or even if tax due will be forgiven based on low income.  Happily, the PA on-line return is really well-designed and easy to use.

-

[soh.maryl]

PA has only had state sales tax since 1953?

Ohio has had state sales tax at least since I was a child and I am 90 which would mean since at least 1940.  They used to give you actual paper state sales tax stamps, which, as I recall, had no value whatsoever.

Does PA still charge no state sales tax on clothing sales? I always thought that was great and was jealous.  

[monroe67]

"Some of the replies w[]ere really disheartening."

Most of the responses spelled out this simple truth:  eBay buyers pay sales taxes as a result of laws created after the US Supreme Court case of South Dakota v Wayfair, that said that states are allowed to impose sales taxes to be paid when an internet purchase is mailed/shipped/delivered to an address within those states.  An Internet Purchase.

"So by most of your logic then: Every person in the United States that has a garage sale should charge the people that buy at the garage sale sales tax and also pay tax on the money that the buyer gave to them."

Your "logic" is misshapen (not to say warped).  Read those bolded, italic words above.  An Internet Purchase.   Garage sale transactions have no involvement with the internet.   Sure, I may read about a garage sale on Craigslist, on the internet, but it is only after I go to the advertised location and decide to give money to the sellers that a sale/purchase transaction takes place.  And those transactions are currently not taxable or taxed.  

"I’m really sorry that I posed this question because I got some really gutless left wing responses."

Well.  I guess some people have pontificated about truth over the past few years, with raised voices and much animation.  (Not always with hair dye running down their jowls, but sometimes.)  The truth about laws is not the political property of either the left or the right wing.  Laws in 45 of the 50 United States require eBay to collect sales tax.  Those laws are facts of internet commerce.  For myself, I like to follow the law, and I like to see that organizations and people I deal with also follow the laws that apply to them.  

"So to sum this up according to most of my responses- I pay sales tax when I buy the item new, I pay an income (Transaction) tax when I sell that Item and the person that buys the item from me pays tax on the item as well."

So much confusion in that sentence.  Income Tax is not Transaction Tax.  
However -- I think you do accurately summarize the occasions of taxation.  But you seem surprised. 
Have you never heard the old idiom, attributed to Benjamin Franklin, that the only certainties of life are death and taxes?

"This country has some real problems going forward- I stand with all the people that call this for what it is-**bleep** and I oppose all the people that think this is okay to do."

Fine.  Stand with others who believe as you do.  You might consider running for election to your city or county government positions, or even your state's legislature.  That is where you may be able to do something to cut sales taxes that you and your neighbors are required, by your own state, to pay.  

[monroe67]

"Somebody please explain this to me in real simple terms exactly like you would explain it to a child."

This was the standard Simple Term Explanation I got when I was a child:
"Because I said so."

[maxine*j]

---

@soh.maryl wrote:

... Does PA still charge no state sales tax on clothing sales? I always thought that was great and was jealous.  

---

Most clothing is exempt from sales tax in PA. 

But some is taxable:  Most formalwear.   All furs.   Clothing sold as costumes (for Halloween, theatrical use, etc.).   Items that are considered sports gear rather than clothing (helmets, some kneepads, baseball gloves, etc.)

-

[albertabrightalberta]

---

@maxine*j wrote:

---

@soh.maryl wrote:

... Does PA still charge no state sales tax on clothing sales? I always thought that was great and was jealous.  

---

Most clothing is exempt from sales tax in PA. 

But some is taxable:  Most formalwear.   All furs.   Clothing sold as costumes (for Halloween, theatrical use, etc.).   Items that are considered sports gear rather than clothing (helmets, some kneepads, baseball gloves, etc.)

---

I'm in Mass. and clothing and shoes are exempt up to $175. Items over $175 are taxed on the amount over $175 because they're considered to be luxury, not necessary.

[mam98031]

---

@stephenmorgan wrote:

---

@mam98031 wrote:

If you aren't making a profit on what you are selling, you might consider donating them instead so you don't just waste your time.  

---

Just  a thought, not a argument.

So a person who does not want to deal with the tax issues can donate their stuff to a non profit who does not have to pay taxes on the 100% profit they will receive by selling your stuff?  I guess this would work but then the governments did not get the extra tax monies they were hoping for.

---

What?  You do realize, I hope, that if that is something that concerns you, choose a different charity.  One that doesn't sell the stuff of but uses it for those in need.  Depending on what you have to donate of course.  Churches collect clothing and household items for people in need all the time.  And look hard enough you can find others that may be able to use what you have to donate.

[soh.maryl]

Thanks for your interesting reply.  So state sales tax in PA still charged on what would be considered "luxury" clothing items.  Seems like a wise move on the part of your state legislature at some point in time.  

[soh.maryl]

The problem with that, while certainly right-minded, is that there are givers of clothing to such charities who don't understand what people really need and just choose clothing donations as a way to get rid of prom dresses and other such items.

When I volunteered with a church group, yes, I saw that happening as well as some clothing that should have made the nonstop trip between the closet and the trash bin.  

[susanb1872]

Very similar in NY. Clothing under $110 is not subject to sales tax but costumes and athletic gear are.

[maxine*j]

---

@soh.maryl wrote:

Thanks for your interesting reply.  So state sales tax in PA still charged on what would be considered "luxury" clothing items.  Seems like a wise move on the part of your state legislature at some point in time.  

---

Most of the exemptions make sense to me, but some seem odd:   Rainwear is not taxable, but umbrellas are.  "Work clothes and work uniforms" are not taxable, but "safety clothing" is, so what about safety clothing required for work?

If you're curious, go to the link below,  scroll down to Page 12, and look at "4 - Clothing and Accessories," and then to Page 24, "25 - Shoes and Shoe Accessories," to see what is taxed and what is not in the Commonwealth of Pennsylvania:

https://www.revenue.pa.gov/FormsandPublications/FormsforBusinesses/SUT/Documents/rev-717.pdf

-

[maxine*j]

---

@soh.maryl wrote:

...there are givers of clothing to such charities who don't understand what people really need ..

---

[dbfolks166mt]

@soh.maryl wrote:

Thanks for your interesting reply.  So state sales tax in PA still charged on what would be considered "luxury" clothing items.  Seems like a wise move on the part of your state legislature at some point in time.  

Most of the exemptions make sense to me, but some seem odd:   Rainwear is not taxable, but umbrellas are.  "Work clothes and work uniforms" are not taxable, but "safety clothing" is, so what about safety clothing required for work?

If you're curious, go to the link below,  scroll down to Page 12, and look at "4 - Clothing and Accessories," and then to Page 24, "25 - Shoes and Shoe Accessories," to see what is taxed and what is not in the Commonwealth of Pennsylvania:

https://www.revenue.pa.gov/FormsandPublications/FormsforBusinesses/SUT/Documents/rev-717.pdf

     This is exactly why I have no problem with eBay collecting and remitting the sales tax or the FVF's on the sales tax for doing so. You gave an example of one states 25+ pages of tax laws and that is just one state that makes up the over 12,000 different sales tax laws and rules. NO WAY I want that headache for what amounts to about $1.00 on a $100 sale

[brightlightbookseller]

Technically, yes, Garage Sales should probably tax their sales.  The reason they don't have to is the IRS doesn't have the resources to go after all the millions of garage sales that happen, plus the rewards would be low, so they carved out an official loophole for them years ago (I think that loophole no longer legally exists, but practically it does at least).  Whether you like it or not, that is the law in the US.  Nothing left wing or right wing about it, and I certainly am not left wing myself (I represent a company with many views, but I personally am right wing).

[mam98031]

OK, not sure what I said prompted that, but OK, I'm sure it is true.  Except the Prom dresses.  Lots of young women depend on those donations to be able to afford that dress for such a special occasion.