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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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eBay is illegally charging tax on used items


@donsdetour wrote:


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.....


Yep.  It is beyond the ability of many to understand that a sales tax is a type of consumption tax, a use tax, so, perforce, is it taxed at the point of consumption, of use;  i.e., at the buyer's location.

 

No matter how many times it is explained, or how it is explained, it a concept that is evidently too complex for many to grasp. 

 

=

 

 

Message 61 of 95
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eBay is illegally charging tax on used items


@maxine*j wrote:

@donsdetour wrote:


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.....


Yep.  It is beyond the ability of many to understand that a sales tax is a type of consumption tax, a use tax, so, perforce, is it taxed at the point of consumption, of use;  i.e., at the buyer's location.

 

No matter how many times it is explained, or how it is explained, it a concept that is evidently too complex for many to grasp. 

 

=

 

 


Best said as a transaction tax I think: some seem to under stand such easier.

Message 62 of 95
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eBay is illegally charging tax on used items


@donsdetour wrote:


Best said as a transaction tax I think: some seem to under stand such easier.


Well, I've tried that -- and had responses from OPs to the effect that, yes, that was exactly their complaint:  Why was this transaction taxed when it's for used goods?!

 

I'm not trying to be snotty or snooty, but I just find it remarkable that people can be old enough to openeBay accounts and not know the rock-bottom basics of the rock-bottom basics of ordinary life:  Sales tax.  Income tax.  Insurance.  Stuff like that.

-

 

 

Message 63 of 95
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eBay is illegally charging tax on used items


@maxine*j wrote:

@donsdetour wrote:


Best said as a transaction tax I think: some seem to under stand such easier.


Well, I've tried that -- and had responses from OPs to the effect that, yes, that was exactly their complaint:  Why was this transaction taxed when it's for used goods?!

 

I'm not trying to be snotty or snooty, but I just find it remarkable that people can be old enough to openeBay accounts and not know the rock-bottom basics of the rock-bottom basics of ordinary life:  Sales tax.  Income tax.  Insurance.  Stuff like that.

-

 

 


I understand what you are saying:

It is such the funds for the transaction is what is taxed, not the item.

At least in my state is is not called a sales tax even though that is what it is... LOL

 

Even with this folks just don't get it.

I like to say its a great way to tax a dollar a thousand times..... That relay confuse them....

Message 64 of 95
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eBay is illegally charging tax on used items


@donsdetour wrote:

...  At least in my state is is not called a sales tax even though that is what it is... LOL

 

 


And in my state, Pennsylvania. it is actually called Use Tax by the Pennsylvania Department of Revenue and referred to that way everything official.  But informally, everyone calls it Sales Tax.

 

Good thing.  Otherwise someone would complain:  I was charged Use Tax illegally!!!!!!!!!  I bought that snowman figurine to put on the shelf just to look at!   I don't USE  it, you know!!!!!!!!!!!!!!!!!!!

 

-

 

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Message 65 of 95
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eBay is illegally charging tax on used items

In MN it is a gross receipts tax .

Message 66 of 95
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eBay is illegally charging tax on used items


@maxine*j wrote:

I'm not trying to be snotty or snooty, but I just find it remarkable that people can be old enough to openeBay accounts and not know the rock-bottom basics of the rock-bottom basics of ordinary life:  Sales tax.  Income tax.  Insurance.  Stuff like that.


The number of grown adults who come through my checkout line wanting to buy something with cash and then not having enough because they didn't account for sales tax is truly astounding. I genuinely don't understand how you can reach adulthood without being aware of these things, because even as a kid I knew that if something said $5 on the tag, it was going to be a little more than $5 when you added tax.

Message 67 of 95
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eBay is illegally charging tax on used items


@yuzuha wrote:

@maxine*j wrote:

I'm not trying to be snotty or snooty, but I just find it remarkable that people can be old enough to openeBay accounts and not know the rock-bottom basics of the rock-bottom basics of ordinary life:  Sales tax.  Income tax.  Insurance.  Stuff like that.


The number of grown adults who come through my checkout line wanting to buy something with cash and then not having enough because they didn't account for sales tax is truly astounding. I genuinely don't understand how you can reach adulthood without being aware of these things, because even as a kid I knew that if something said $5 on the tag, it was going to be a little more than $5 when you added tax.


Well it is such dem schools just dont teach much any more.... My grandfathers 8th grade book taught more about math and business uses of such than any today do......

Message 68 of 95
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eBay is illegally charging tax on used items

Since the cash register is no doubt operated by the same electricity that powers the lights, automatic doors etc in the store, that wait is probably going to be quite awhile regardless of whether or not the kid knows how to subtract.  

Message 69 of 95
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eBay is illegally charging tax on used items

Life here is definitely much easier regarding sales tax than over there...........

 

GoodsServicesTax 10% across the board on all non essentials - across the country - all states - done 😊

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I have been imported from Australia and this is my posting ID
Message 70 of 95
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eBay is illegally charging tax on used items

Get a reseller permit.

Message 71 of 95
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eBay is illegally charging tax on used items

There's instances where I've bought from nonprofit thrift stores and no they don't charge sales tax. I don't know why. Is it that because they don't have to pay sales tax as a nonprofit, neither do they collect it from the buyer? I guess so. But the simple answer is, if your state has a sales tax, you're required to pay it on any sale, or otherwise in any event where currency exchanges hands for goods or services.

 

Ebay is merely collecting sales tax on goods and services now for the respective states in which the purchase is made. Different states have different sales tax rates. They've all chomped at the bit to require online merchant sites to collect sales tax. Formally, all US states now collect sales tax from online sales in their states. They didn't all used to, but were growing jealous of the money they weren't getting. A lot of sales happen online anymore, fewer in traditional brick and mortar businesses. While it's convenient that ebay collects this sales tax from buyers instead of having sellers do it (and remit it to their states), you still ought to keep track of it, in case they make an error.

 

But I see where you're coming from. Someone buys a new car. Tax is paid. They resell the car. Tax is paid. Someone else sells that same car. Taxed, again. It seems unfair. But tax isn't a one time thing. It's a recurring thing that happens when currency is exchanged for goods and services (sales... tax).

 

Income tax on the other hand is a different thing. Depends on whether you made 'profit' on the item, or not. A sale of personal items you once already paid ie MSRP/full price for, when you go to resell it, you often don't make a profit. But if it's ie a collectable that has gained value, and you're making a profit by its sale (more that what you paid for it), it's taxable.

Message 72 of 95
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eBay is illegally charging tax on used items

Yes, it is illegal.  I am in CA and Goodwill does not collect tax.  They are tax exempt.  I shop at my local store.  There is never any sales tax.  Then I come here, shopped the CA Goodwill seller I like (also located in CA) and I'm now magically charged sales tax.  When I asked the seller about it, they said:  "Unfortunately, we do not collect the sales tax for items sold online. The marketplace, in this case eBay, collects the sales tax for items sold."

 

So how's THAT work and what can we do about it?  (Not cool but I see no recourse.)

Message 73 of 95
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eBay is illegally charging tax on used items


@soh.maryl wrote:

I'm in Ohio and I know that there is a state sales tax on second hand items here.

Can you list a state or two that doesn't tax the sale of used items?


The state of confusion 

Message 74 of 95
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eBay is illegally charging tax on used items

Hi @navom1 

 

First let me say that you have posted to a 4-month-old thread ... so the original poster is not likely to see your reply.

 

Goodwill is the only thrift store that is exempt from collecting tax in CA.  [It collects tax in other states.]

 

The tax that eBay collects is the Marketplace Facilitator Tax, which is collected for online purchases ... and often has different rules than buying locally. 

 

If you believe that eBay is illegally collecting tax for items purchased from the online Goodwill Store ... AND shipped to California ... then you will have to have some official from the 'State of California' contact eBay and let them know what the law is.  

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