eBay and Sales Tax: I find it interesting that eBay charges sales tax even for items that come from China. Apparently, eBay is the actual seller, so it collects the tax. For a recent...

jerryc41 Loc: Catskill Mts of NY

I find it interesting that eBay charges sales tax even for items that come from China. Apparently, eBay is the actual seller, so it collects the tax. For a recent purchase, I paid 4% county tax, rather than 8% state tax. Given the choice of death or taxes, I'd take taxes every time.

jaymatt Loc: Alexandria, Indiana

Sals tax laws are governed by each state. In your case, the friendly folks in Albany are responsible for this, not eBay.

jerryc41 Loc: Catskill Mts of NY

jaymatt wrote:

Sals tax laws are governed by each state. In your case, the friendly folks in Albany are responsible for this, not eBay.

Right, but I bet if I bought directly from China, I wouldn't pay tax. Paying $0.12 isn't too bad. Maybe they'll fix the pot holes in the roads now.

jaymatt Loc: Alexandria, Indiana

jerryc41 wrote:

Right, but I bet if I bought directly from China, I wouldn't pay tax. Paying $0.12 isn't too bad. Maybe they'll fix the pot holes in the roads now.

pendennis

The tax is owed as a "use tax", not a sales tax, since the item was not bought in the state where it's used.

There have been a number of discussions on the topic in the past.

For simplicity -

If you buy something in your home state and use it there, the tax is a sales tax.

If you buy something from outside your state, and use it in your home state, the tax is a use tax.

eBay is only a use/sales tax collector, and they remit those taxes collected to the buyer's shipping address state. If your home state doesn't collect sales/use tax, eBay will not add any taxes to your purchase.

Longshadow Loc: Audubon, PA, United States

pendennis wrote:

The tax is owed as a "use tax", not a sa... (show quote)

In PA it goes by the moniker "Sales and Use Tax".
Sales where it can, use where it can't (Internet/out of state).

jaymatt Loc: Alexandria, Indiana

Indiana calls it a sales tax, period.

ClarkJohnson Loc: Fort Myers, FL and Cohasset, MA

I think everyone who purchased mail order items because the seller did not charge sales tax knew that they were skirting the law and depriving states of revenue. We just did it anyway because the savings were too attractive. As irritating as it is, i can’t really object now that ebay and others are finally charging sales/use taxes.

Dalek Loc: Detroit, Miami, Goffstown

eBay doesn't charge sales tax, they collect it for the state. My question is, how much does the state receive and how much does eBay keep.

jbk224 Loc: Long Island, NY

Dalek wrote:

eBay doesn't charge sales tax, they collect it for the state. My question is, how much does the state receive and how much does eBay keep.

By law..Ebay keeps nothing. If they do, they can be prosecuted.

Longshadow Loc: Audubon, PA, United States

MrBumps2U wrote:

I think everyone who purchased mail order items because the seller did not charge sales tax knew that they were skirting the law and depriving states of revenue. We just did it anyway because the savings were too attractive. As irritating as it is, i can’t really object now that ebay and others are finally charging sales/use taxes.

USED to be there was no sales tax on mail order from out of state businesses.
Not skirting the law, just wasn't charged or collected.
Then the states realized that they were missing out on revenue...

Bill_de Loc: US

Longshadow wrote:

USED to be there was no sales tax on mail order from out of state businesses.
Not skirting the law, just wasn't charged or collected.
Then the states realized that they were missing out on revenue...

Used to be many states had a provision when you filed your income tax to collect sales tax. You were supposed to report and pay sales tax on items purchased out of state. Most people made believe they weren't skirting the law. If everybody was honest they wouldn't have had to change the law.

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Longshadow Loc: Audubon, PA, United States

PA does. I can provide receipts or pay a flat fee for "use tax on internet/out of state purchases".

Before that, they never worried about it. No one did.

2Dragons Loc: The Back of Beyond

jerryc41 wrote:

I find it interesting that eBay charges sales tax even for items that come from China. Apparently, eBay is the actual seller, so it collects the tax. For a recent purchase, I paid 4% county tax, rather than 8% state tax. Given the choice of death or taxes, I'd take taxes every time.

I was always under the impression that if you were selling "used" items that there would be no sales tax involved. I know this is true of yard sales, why would it be different if you were selling a used item on eBay or any other online site? This of course, applies to a person that is reselling their own items that they'd already paid a sales tax on when the item was new. Just asking.

Longshadow Loc: Audubon, PA, United States

2Dragons wrote:

I was always under the impression that if you were selling "used" items that there would be no sales tax involved. I know this is true of yard sales, why would it be different if you were selling a used item on eBay or any other online site? This of course, applies to a person that is reselling their own items that they'd already paid a sales tax on when the item was new. Just asking.

Doubt that there would be no sales tax involved, technically.
No one having a garage sale has a sales tax account to report sales.

It's still a sale, sell something 10 times, it's still a sale, 10 of them. It doesn't only apply to the initial sale.
If I sell my used car, the buyer has to pay sales tax on transfer. Ah, the government got involved...

Garage sales are part of the underground economy.