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eBay is illegally charging tax on used items

In most if not all states, there is no tax on second hand items.  eBay is illegally taking our money.  I have tried this in two different states that both have no tax on second hand items, and I was still charged.

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Re: eBay is illegally charging tax on used items

Just a little off-topic comment.  I grew  on the South Side of Chicago when it was nice. As in no gangs. 40s and 50s. I was stunned, when about 10 years ago my late sister told me the area we grew up in  (South Shore) is-now known as Terror Town. And a Google search reveals the most corrupt city in the U. S.is officially Chicago. Kind of heart-breaking for me. Hadn’t heard “Crook County” before.

Message 46 of 95
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Re: eBay is illegally charging tax on used items

Well, if you consider GW, SA etc to be "thrift store charities", then your statement would be wrong, at least where I live.  

Message 47 of 95
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Re: eBay is illegally charging tax on used items

"In most if not all states, there is no tax on second hand items."

Still awaiting that list from the OP.  

Message 48 of 95
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Re: eBay is illegally charging tax on used items


@iart wrote:

Maybe the OP has been buying from Thrift Store Charities which, as charities, do not charge sales tax.


In my experience, charities must

charge sales tax. They may not have to pay sales tax when they buy something.

Message 49 of 95
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Re: eBay is illegally charging tax on used items


@maxine*j wrote:

I once tried to make my way through page after page after page of what is and is not subject to sales tax here in PA.   PA is extremely detailed in what is and is not taxable.  I gave up trying to make much sense of it.  But I do remember a few oddball things: 

 

Pumpkins are not taxed if they are to be used for food, but they are taxed if they are to be used for decoration.    The United States flag and the flag of the Commonwealth of Pennsylvania are non-taxable, but all other flags and all bunting is.   Bowling shirts are tax exempt, but bowling shoes are taxed.


Try checking out some of the 'blue laws' here in PA. Way too amusing that some of these are still on the books.

 

Like this one:

You cannot sing in the bathtub in Pennsylvania.

 

_____________________________
"Nothing is obvious to the oblivious"
Message 50 of 95
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Re: eBay is illegally charging tax on used items

@navom1 

 

< I have tried this in two different states that both have no tax on second hand items, and I was still charged >   

 

You could try all the other 49 and the same thing would happen.  The sales tax is applied as per the laws of the buyer's state, not the seller's.  If your state has passed laws requiring sales tax on internet purchases, you're going to be charged, and it makes no difference where you buy the items from. 

 

Message 51 of 95
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Re: eBay is illegally charging tax on used items


@d-k_treasures wrote:

@maxine*j wrote:

I once tried to make my way through page after page after page of what is and is not subject to sales tax here in PA.   PA is extremely detailed in what is and is not taxable.  I gave up trying to make much sense of it.  But I do remember a few oddball things: 

 

Pumpkins are not taxed if they are to be used for food, but they are taxed if they are to be used for decoration.    The United States flag and the flag of the Commonwealth of Pennsylvania are non-taxable, but all other flags and all bunting is.   Bowling shirts are tax exempt, but bowling shoes are taxed.


Try checking out some of the 'blue laws' here in PA. Way too amusing that some of these are still on the books.

 

Like this one:

You cannot sing in the bathtub in Pennsylvania.

 


So I was a hardened criminal at age 6. That explains a lot. 😂

Message 52 of 95
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Re: eBay is illegally charging tax on used items


@mandisattictoyz wrote:

Is education really in a decline these days?  It’s a “sales” tax.  Not an item tax.  The government taxes the sale, not the item in question.  Please use google as it is your friend.


When parents are being called domestic terrorists because they want a say in how their kids are being educated, yes, it sure is in a decline.

 

Go to a store when the power goes out and give the kid a 20.00 bill for a 8.54 purchase - and see how long you wait for your correct change.

 

_____________________________
"Nothing is obvious to the oblivious"
Message 53 of 95
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Re: eBay is illegally charging tax on used items

If they are registered as a non-profit charity, then yes, that is what they are. SA in Broward County (FL) used to not charge sales tax because they were registered as such. But in Palm Beach County they were apparently not because they did charge sales tax.

Message 54 of 95
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Re: eBay is illegally charging tax on used items


@laststopgeneralstore wrote:

Well then that means all of the savers, goodwill, amvets, salvation armys, tj maxx etc... are all operating illegally. That's just a small portion of brick & mortar stores around the world. Their are many many many more.


Whether or not non-profits must collect sales tax varies from state to state.  Here in Pennsylvania they must collect sales tax.  That is the case in nearly all states with a sales tax, actually.   

 

You may have beeen thinking of federal income tax exemptions, which non-profits enjoy.

 

-

Message 55 of 95
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Re: eBay is illegally charging tax on used items

I live, work, buy and sell out of Oregon. There is no sales tax. If i go to a store and purchase a gallon of milk for 5.99 I pay 5.99 nothing more. If a customer comes to my store here locally in Oregon and buys a product and they are from Idaho or any other state they are not charged a sales tax. All items are used that we sell. And in some cases from other states that w buy from these items have already been taxed once when purchased new. The internet is different is what I've been told by eBay as I have questioned it. Now if someone in Oregon buys from us on eBay they will not be taxed. But if your in a sales tax state eBay applies the sales tax percentage to your total order including the shipping fee.  Which I don't understand on the shipping fee. I don't see why our customers should be charged any sales tax since we are in a non taxable state. I also asked for the records of sales tax taken from my sales to turn into my tax accountant and I'm still waiting on them and it's been since January. This is business used money that needs to be accounted for on taxes as we never received it yet was charged on our total sale for it.  It's pretty tricky and I've still to figure it out.

Message 56 of 95
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Re: eBay is illegally charging tax on used items

Yes Oregon does have a State income tax but no sales tax. If I buy a gallon of milk for 5.99 I pay 5.99 no more. I'm continually charged a sales tax on the products that I sell on eBay and when asked eBay explains that the internet is different when selling and they charge whatever the percent of that persons sales tax for the state they live in. If it's an Oregon customer no they don't charge the sales tax because there isn't any. I've also asked eBay for the record of sales tax that they have taken to turn in to my tax accountant as this is money that was taken out of my total income. This was requested in January and I have yet to hear anything. 

Message 57 of 95
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Re: eBay is illegally charging tax on used items


@shotcallerscustomsllc wrote:

Yes Oregon does have a State income tax but no sales tax. If I buy a gallon of milk for 5.99 I pay 5.99 no more. I'm continually charged a sales tax on the products that I sell on eBay and when asked eBay explains that the internet is different when selling and they charge whatever the percent of that persons sales tax for the state they live in. If it's an Oregon customer no they don't charge the sales tax because there isn't any. I've also asked eBay for the record of sales tax that they have taken to turn in to my tax accountant as this is money that was taken out of my total income. This was requested in January and I have yet to hear anything. 


Items taxed are due to the state the buyer is registered in, not the state the seller is in.

 

I see that understanding this is complicated for users.....

Message 58 of 95
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Re: eBay is illegally charging tax on used items


@shotcallerscustomsllc wrote:

Yes Oregon does have a State income tax but no sales tax. If I buy a gallon of milk for 5.99 I pay 5.99 no more. I'm continually charged a sales tax on the products that I sell on eBay and when asked eBay explains that the internet is different when selling and they charge whatever the percent of that persons sales tax for the state they live in. If it's an Oregon customer no they don't charge the sales tax because there isn't any. I've also asked eBay for the record of sales tax that they have taken to turn in to my tax accountant as this is money that was taken out of my total income. This was requested in January and I have yet to hear anything. 


@shotcallerscustomsllc,

 

You are not charged sales tax, only buyers are charged sales tax. The sales tax paid by your buyers is not taken out of your income. It is included in the buyer's total payment, but eBay sends it to the buyer's state. It is never in your eBay or managed payment account, or your payouts.

 

The sales tax is not included in total payments received amount that is shown in your 1099-K, if you receive one.

 

However, you can find the amount of sales tax that was collected from  your buyers in the sales reports that you can download from eBay. Some sellers (in states with sales tax) need to know how much tax was collected by the marketplace in order to file a sales tax report to their state.

Message 59 of 95
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Re: eBay is illegally charging tax on used items


@shotcallerscustomsllc wrote:

I live, work, buy and sell out of Oregon. There is no sales tax. If i go to a store and purchase a gallon of milk for 5.99 I pay 5.99 nothing more. If a customer comes to my store here locally in Oregon and buys a product and they are from Idaho or any other state they are not charged a sales tax. All items are used that we sell. And in some cases from other states that w buy from these items have already been taxed once when purchased new. The internet is different is what I've been told by eBay as I have questioned it. Now if someone in Oregon buys from us on eBay they will not be taxed. But if your in a sales tax state eBay applies the sales tax percentage to your total order including the shipping fee.  Which I don't understand on the shipping fee. I don't see why our customers should be charged any sales tax since we are in a non taxable state. I also asked for the records of sales tax taken from my sales to turn into my tax accountant and I'm still waiting on them and it's been since January. This is business used money that needs to be accounted for on taxes as we never received it yet was charged on our total sale for it.  It's pretty tricky and I've still to figure it out.


All of this was explained to t, in detail, in the thread you started on this topic. A buyer sitting in PA , buying stuff on the internet, pays sales tax to PA, at whatever rate PA and their local government charge. eBay collects it and sends it to PA. If PA requires tax to be charged on shipping, eBay does that too. PA doesn’t care where the item is coming from.

 

If you still don’t understand this, find someone to explain it to you in person.

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