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sales tax overcharge

    Have seen post concerning overcharge of sales tax and have experienced the same.   What is so wrong about this is the buyer is paying more than they should and the seller is paying an inflated fee.  Ebay's fees are based on the total sale including the sales tax.  This results in the fee paid being a few cents more than if the sales tax was correct.  A few cents isn't much until you consider how many sales a day Ebay has.  Just think if everyone that reads this just sent me .03 cents.  I'll take it LOL!!!  Thanks.

Message 1 of 18
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17 REPLIES 17

Re: sales tax overcharge

That is a pretty serious allegation, with some very stiff penalties for the entity "overcharging".....I only know that from my retail store days......

 

Could you provide the example you are referring to?

Message 2 of 18
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Re: sales tax overcharge


@**t*n*t** wrote:

    Have seen post concerning overcharge of sales tax and have experienced the same.   What is so wrong about this is the buyer is paying more than they should and the seller is paying an inflated fee.  Ebay's fees are based on the total sale including the sales tax.  This results in the fee paid being a few cents more than if the sales tax was correct.  A few cents isn't much until you consider how many sales a day Ebay has.  Just think if everyone that reads this just sent me .03 cents.  I'll take it LOL!!!  Thanks.


Give one example where eBay is adding more sales tax than they should.

 

You would need to include the type of item, the zip code to where it's being sent, the total amount of the sale, the total amount of the shipping charged.

 

 

Message 3 of 18
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Re: sales tax overcharge

 "the buyer is paying more than they should"

 

TRANSLATION:

 

The buyer is paying more than they would like.

Papa Was A Rolling Stone - The Temptations
Message 4 of 18
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Re: sales tax overcharge

Look up the sales tax rates in each State by County and then tell us who is paying too much.  What is too expensive is the price of drinks in restaurants so I stopped ordering them about ten years ago.

Message 5 of 18
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Re: sales tax overcharge

  Actual sale-  Item   $30.00

                   shipping          9.60

 

I am a destination state as far as the sales tax.   The amount should have been based on 6 %  with a total sale of $41.98.  My state is 7%  so if they used that  the total would have been $42.38.   The total with Ebay's calculation was $42.57.   I have seen some other post concerning the same issue.  

Message 6 of 18
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Re: sales tax overcharge

@**t*n*t** 

 

You didn't include the destination zip code!

 

I am a destination state as far as the sales tax.

Not sure what you mean by that, was the sale shipped to a buyer within Indiana?

Message 7 of 18
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Re: sales tax overcharge

@**t*n*t** 

 

What category was the said item listed in?

No one asked, but I am looking forward to the day when having feedback default sorted by relevance seems right.
Message 8 of 18
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Re: sales tax overcharge


@jayjaspersgarage wrote:

Look up the sales tax rates in each State by County and then tell us who is paying too much.  What is too expensive is the price of drinks in restaurants so I stopped ordering them about ten years ago.


@jayjaspersgarage 

You're so right.  If I'm not drinking wine ... I prefer water with my restaurant meals ... except that California water is totally **blech**.    🤢

Message 9 of 18
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Re: sales tax overcharge

Item was shipped out of state.  There are origin states and destination state.  When shipping out of Indiana the tax is based on the destination tax rate.

Message 10 of 18
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Re: sales tax overcharge

It was listed in bath items

Message 11 of 18
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Re: sales tax overcharge

"I prefer water with my restaurant meals ... except that California water is totally **blech**. "

 

Too much of a generalization.  Hetch Hetchy water is fabulous.  Which county and often which neighborhood you live in makes a world of difference in the water.  So much so that it is featured in selling details of real estate listings on occasion just as low crime rates and top-tier schools.

Message 12 of 18
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Re: sales tax overcharge


@**t*n*t** wrote:

Item was shipped out of state.  There are origin states and destination state.  When shipping out of Indiana the tax is based on the destination tax rate.


I know how Sales Tax is applied!

 

What I still don't know after asking twice is WHERE WAS THE ORDER SHIPPED TO? To be accurate one would need the actual zip code of the destination not just the State.

 

Without this information no one can determine if the Sales Tax charged by eBay is correct or not.

Message 13 of 18
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Re: sales tax overcharge

State sales tax isn't as simple as we think it should be.  Within each state, the individual counties may have variations in state sales tax rates.  There are also some cities whose tax rate may be higher by as much as 1%. Wouldn't you have to know the buyer's county and its tax rate to state that they are being overcharged for sales tax? Not sure how eBay handles these variations, come to think of it.  

Message 14 of 18
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Re: sales tax overcharge


@soh.maryl wrote:

State sales tax isn't as simple as we think it should be.  Within each state, the individual counties may have variations in state sales tax rates.  There are also some cities whose tax rate may be higher by as much as 1%. Wouldn't you have to know the buyer's county and its tax rate to state that they are being overcharged for sales tax? Not sure how eBay handles these variations, come to think of it.  


I'm not 100% sure but my understanding is that if a buyer provides a zip+5 code the tax is calculated as the State rate + the Local rate. If the buyer only provides a 5 digit Zip Code the tax is applied at the highest State+Local rate in the ship to State (or maybe it's the highest local rate within that 5 digit Zip Code).

 

 

5 Digit Zip Codes are not sufficient enough in all cases to determine the actual local rate because some upper level zip codes cover more than one "local" area.

 

 

 

Message 15 of 18
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