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Yet another tax question

How come ebay can keep all the taxes charged on items I'm selling when they only get a percentage of each sale?

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Yet another tax question


@luckykey3 wrote:

@7606dennisThanks for your input.  I didn't realize all that Florida was taxed for.   I just don't think it's right that an item is taxed and taxed and taxed and taxed, with no limit.  Feels like highway robbery.  At least give used items a cut on the amount.  And knowing my luck .. if I moved to Florida, and set up a yard sale, a hurricane would arrive. 


Actually, hurricane season is only nine months long and we usually get a little warning before they hit.  

 

Like most other places, taxes are a fact of life.  When it comes to yard sales, permits are required in most places here.  Of course, occupational licenses are required for most businesses as well, but I'm sure that many states require business licenses for retailers and other businesses.  Permits aren't too bad compared to things like county and city licenses.

 

Of course, Florida does have auction licensing that can be a bit pricey to first obtain if you were to sell at auction, including online auctions.  However, providing you own the property that you are selling auctioneer and auction business licenses are not required.

 

Actually, other than the occasional hurricane, the weather is fairly nice and there is no state income tax.  Alas!  Rents and somewhat high though. 

"It is an intelligent man that is aware of his own ignorance."

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Message 10 of 15
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14 REPLIES 14

Yet another tax question

eBay doesn't keep the taxes. They remit them to each of your buyers' states.
Message 2 of 15
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Yet another tax question

It seems that you may not have read all the available information about state sales tax.

eBay, at the request (order) of about 35 states is now collecting and remitting state sales tax on internet purchases.

eBay is required by law to remit those funds to the appropriate state, which would be the state of the delivery address of the buyer.  

You may want to look up more information before launching into asking questions based on erroneous information.

Message 3 of 15
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Yet another tax question

eBay is collecting the tax and then submitting to the appropriate state

Message 4 of 15
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Yet another tax question

@soh.maryl  no need to be rude.  Yeah I've read other info on this.  But the other two people that just answered made the most sense to me so I thank them for saying what they said without being rude about it. Cheesh.

Message 5 of 15
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Yet another tax question


@luckykey3 wrote:

How come ebay can keep all the taxes charged on items I'm selling when they only get a percentage of each sale?


I'm curious as to where you got the idea that eBay gets to keep the taxes that they collect?

"It is an intelligent man that is aware of his own ignorance."
Message 6 of 15
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Yet another tax question

@7606dennisMy bad.  I should've said take instead of keep.  I thought sellers were supposed to collect taxes on things they sell not the place they are selling them at such as ebay.   I know it's an new law but I still think I shouldn't have to pay taxes when selling my used items.  At least give a bit of a cut on used items.  I think thrift shops should be given a cut too.  I don't have to pay anything at  yard sales, or on Craigslist.   I guess they're next. Pitiful.  I think I'll move to Florida.

Message 7 of 15
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Yet another tax question


@luckykey3 wrote:

@7606dennisMy bad.  I should've said take instead of keep.  I thought sellers were supposed to collect taxes on things they sell not the place they are selling them at such as ebay.   I know it's an new law but I still think I shouldn't have to pay taxes when selling my used items.  At least give a bit of a cut on used items.  I think thrift shops should be given a cut too.  I don't have to pay anything at  yard sales, or on Craigslist.   I guess they're next. Pitiful.  I think I'll move to Florida.


 

Sellers were only required to collect sales tax on transactions where they had a nexus in the state where the item was being delivered.  Otherwise the buyer was suppose to pay use tax to that state themselves.  Under the marketplace facilitator laws, eBay and other sites are required to collect the sales instead of the state relying on their residents to pay those taxes themselves.

 

I'm sure that there are many antique collectors that would love it if used items were not taxable.  However, it is up to the individual state to determine what is and is not taxable.

 

With regards to your moving to Florida, as a Florida resident, I should tell you that although it has not yet enacted a marketplace facilitator law, residents are subject to sales/use tax laws and are expected to pay use tax on such purchases as those you mentioned from yard sales and Craigslist.  The base rate is 6% plus local option taxes depending upon the delivery location. 

 

Of course, Florida doesn't have a state income tax.  Florida does get quite a bit of revenue from tourist taxes too.  So come on down, the weather is pretty good.

"It is an intelligent man that is aware of his own ignorance."
Message 8 of 15
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Yet another tax question

@7606dennisThanks for your input.  I didn't realize all that Florida was taxed for.   I just don't think it's right that an item is taxed and taxed and taxed and taxed, with no limit.  Feels like highway robbery.  At least give used items a cut on the amount.  And knowing my luck .. if I moved to Florida, and set up a yard sale, a hurricane would arrive. 

Message 9 of 15
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Yet another tax question


@luckykey3 wrote:

@7606dennisThanks for your input.  I didn't realize all that Florida was taxed for.   I just don't think it's right that an item is taxed and taxed and taxed and taxed, with no limit.  Feels like highway robbery.  At least give used items a cut on the amount.  And knowing my luck .. if I moved to Florida, and set up a yard sale, a hurricane would arrive. 


Actually, hurricane season is only nine months long and we usually get a little warning before they hit.  

 

Like most other places, taxes are a fact of life.  When it comes to yard sales, permits are required in most places here.  Of course, occupational licenses are required for most businesses as well, but I'm sure that many states require business licenses for retailers and other businesses.  Permits aren't too bad compared to things like county and city licenses.

 

Of course, Florida does have auction licensing that can be a bit pricey to first obtain if you were to sell at auction, including online auctions.  However, providing you own the property that you are selling auctioneer and auction business licenses are not required.

 

Actually, other than the occasional hurricane, the weather is fairly nice and there is no state income tax.  Alas!  Rents and somewhat high though. 

"It is an intelligent man that is aware of his own ignorance."
Message 10 of 15
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Yet another tax question

Just a quick question so I understand all of this. If paypal totals the sales and that is what goes to the IRS, are the state taxes included in that and since Ebay is sending that to the individual states do I deduct that from my earnings or has Ebay already done that?

Message 11 of 15
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Yet another tax question

People continue to want to use the roads and schools. Those things have to be paid for on an ongoing basis. Sales tax on original purchases would have to be incredibly high if tax wasn’t charged on every sale.

 

People who retire to Florida likely use the infrastructure of the state. How would they expect that to be paid for?

Message 12 of 15
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Yet another tax question

@the*dog*ate*my*tablecloth  I thought that was what property taxes were for. 

Message 13 of 15
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Yet another tax question

@laurabeardsleyYeah I'd like to know the same thing.

Message 14 of 15
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Yet another tax question

Property taxes pay for town resources not for state resources like roads and water management

Message 15 of 15
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