Why is Ebay charging a tax on a used or pre-owned item that sold?

[rickbfxx2014]

The taxes were already paid on used/sold items the first time the item was purchased.  So why are we being taxed twice for the same items? Am I not seeing something here?

[jjcartergoods]

If I buy a bicycle from a yard sale, I don’t pay tax. eBay is a giant yard sale. You can barter, make offers and even trade. You can’t do that in a retail store. These items have already been taxed already. This is just governmental greed. Nothing more. Just wish we could change it. 

[soh.maryl]

As others have mentioned, the tax is on the transaction, not on the item itself.

Also, in your state, do you not pay state sales tax on the purchase of a used car?

Your state legislature cannot regulate garage or yard sale selling; that is, your state representative has no way to force you to charge state sales tax at the garage sale.  Your state, however, can force eBay to collect state sales tax on items listed for sale on eBay and shipped to buyers in your state.

Feel free to contact your state rep and suggest that this law be changed.

[bigyellowdog2012]

@jj

I happen to agree with you. yeah yeah I get the transaction tax 

but I think it gets a little ridiculous too---

when my uncle died and left his nieces a small inheritance  the state of NJ 

took 16% off of each of us. 

This was money that he had already paid taxes on.

It was a huge chunk of change for us.

Even my sister who is a CFP thought it was disgusting.

[sextons-sweet-deals]

tax on the transaction is the same as the item and the amount it sold for!  

What is wrong is eBay adding final sale + shipping + tax to get their cut!

Where is that Boston Tea Party that we were taught in school? lol!

[southern*sweet*tea]

I'd like to wish this thread a happy belated first anniversary!

[stealld_0]

I do not have a law degree but I did learn to read. Article 9  of the US Constitution states  (No Tax or Duty shall be laid on Articles exported from any State) now of course it is referring to ports of entry (Ships).  Why would it not apply to the products you and I have to sell ? 

[stealld_0]

I do not have a law degree but I did learn to read. Article 1 Section 9  of the US Constitution states  (No Tax or Duty shall be laid on Articles exported from any State) now of course it is referring to ports of entry (Ships).  Why would it not apply to the products you and I have to sell ? 

[maxer2181999]

Thats bull **bleep** in my state used items other then a car or house, are not taxed and e bay still charges tax on those items I sell .I would like to see a receipt of who there paying my part to other then there self. face book market place don't charge tax on sales, and has worked better for me then e bay lately. Fact is e bay dose not want some guy selling his old stuff anymore they want you to sell in bulk and have a store trying to drive the little guy trying to make a few extra bucks out

[lja440]

Here is part of an invoice for a on-line auction I frequent in my area where I can pick up rather than pay shipping and view the next weeks auction items.  As you can see sales tax is charged.

Lot #

Qty

Title

22

1

Catering/warming steam table containers and other items

$7.50

Internet Premium

20%$1.50

Sales Tax

6.75%$0.51

Sub-Total

$9.51

Lot #

Qty

Title

25

1

Misc. office items

$3.50

Internet Premium

20%$0.70

Sales Tax

6.75%$0.24

Sub-Total

$4.44

Lot #

Qty

Title

116

1

Artwork with motorcycle in frame signed Spahr

$6.00

Internet Premium

20%$1.20

Sales Tax

6.75%$0.40

Sub-Total

$7.60

Lot #

Qty

Title

453

1

(4) New Murval Travel Bags

$13.00

Internet Premium

20%$2.60

Sales Tax

6.75%$0.88

Sub-Total

$16.48

Lot Fee Summary

Hammer Price

$30.00

Internet Premium

$6.00

Sales Tax

$2.03

Totals

Miscellaneous Charges

$0.00

$0.00

Shipping and Handling

$0.00

$0.00

Lots (4)   Qty (4)

Total (USD)

$38.03

[lja440]

Maybe you are reading something outdated. I'm in Ohio. While I might get away with selling something on CL or FM without tax, my B&M is subject to random checks and if we were not charging tax we could be audited, fined or even shut down.

[thomasm2423]

I don't pay any taxes on used items at garage sales or to anyone else selling anything unless they are a licensed store.

[thomasm2423]

they don't tax garage sales in my state why am I being taxed on a used item from a seller who has only had one item for sale on ebay

[thomasm2423]

No, it's not the American way, it's a criminal's way.

[lja440]

Actually in a lot of areas you can't have perpetual garage sales without a vendors license and pay taxes. eBay was at one time a perpetual garage sale, now it is an on-line marketplace. Both would have been subject to taxation.

[dgirlsdemsugar]

What happens to that tax once I return the item for whatever reason?