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eBay and Sales Tax
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Apr 23, 2020 11:23:20   #
nadelewitz Loc: Ithaca 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.


In New York (where I ran a small business, collected sales tax on purchases and remitted them to the state annually) the business you're buying from is allowed to keep a small percentage of the collected taxes when remitting them to the state. It's not much. Intended to "pay" the merchant for acting as the state's collection agent.

You can ask your state tax department or a business who collects sales taxes in your state what the percentage is.

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Apr 23, 2020 11:26:37   #
drobvit Loc: Southern NV
 
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...


👍

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Apr 23, 2020 12:18:59   #
Old Coot
 
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.


If I buy an item from an individual on ebay thru an auction,then ebay is just the go between. They do not collect nor disperse any money so why are they allowed to add Sales tax to the total ?l

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Apr 23, 2020 12:27:35   #
Longshadow Loc: Audubon, PA, United States
 
tfgone wrote:
If I buy an item from an individual on ebay thru an auction,then ebay is just the go between. They do not collect nor disperse any money so why are they allowed to add Sales tax to the total ?l


Revenue MUST be collected.

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Apr 23, 2020 13:05:39   #
marine73 Loc: Modesto California
 
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.


When pigs fly. They will find something else to spend the money on.

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Apr 23, 2020 13:06:02   #
JFCoupe Loc: Kent, Washington
 
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.


In my accounting days and responsible for multi-state sales/use tax reporting, all taxes collected by ebay are forwarded to the state as designated by the location of the purchaser. I do not think that any of the funds go to ebay. Processing the tax remittances is a cost ebay absorb as part of doing business.

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Apr 23, 2020 13:32:03   #
Old Coot
 
Nobody pays Ebay.
All funds processed thru Paypal or something similar

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Apr 23, 2020 14:13:16   #
Longshadow Loc: Audubon, PA, United States
 
JFCoupe wrote:
In my accounting days and responsible for multi-state sales/use tax reporting, all taxes collected by ebay are forwarded to the state as designated by the location of the purchaser. I do not think that any of the funds go to ebay. Processing the tax remittances is a cost ebay absorb as part of doing business.

In PA (and many places), sales tax collectors get a small percentage (rebate, discount, ...) for their services of collecting the tax.

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Apr 23, 2020 14:13:59   #
2Dragons Loc: The Back of Beyond
 
marine73 wrote:
When pigs fly. They will find something else to spend the money on.


As long as the feds and states have "General Funds", they'll spend the money on anything BUT what & why it was collected. What the average person doesn't realize is that the average tax collected by states and by the federal government on gasoline for maintenance of paved roads, FAR surpasses what the oil companies actually make per gallon. And we dodge pot holes no matter where we drive. Some enterprising towns in (unnamed state) have actually dug up their paved roads and gone back to dirt roads as it is cheaper to maintain dirt roads with graders than paved roads.

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Apr 23, 2020 14:15:55   #
nadelewitz Loc: Ithaca NY
 
tfgone wrote:
If I buy an item from an individual on ebay thru an auction,then ebay is just the go between. They do not collect nor disperse any money so why are they allowed to add Sales tax to the total ?l


eBay is not being ALLOWED to add sales tax. eBay is REQUIRED to add sales tax. Like any other online merchant. They aren't doing it because they WANT to.

States will figure out how to collect taxes. Since eBay is a central go-between, it's convenient to make them do the collecting.

Why doesn't everyone just STOP condemning online merchants for doing what they are REQUIRED TO DO BY STATES? If you still buy from someone who does not collect the sales tax, they are either slow to implement the law or are just plain violating the law and haven't gotten caught yet.

Or, they're complying with tax laws but are making it look like they aren't "charging" sales tax so you will buy from them, and they eat the tax amount they have to remit to the state from their profit. That is perfectly legal. They are just discounting the selling price by the tax %.

That's the marketing gimmick B&H Photo came up with their "tax-free" credit card. They will make up some of the discount they are "giving" you from the very high interest rate on your credit card balance if you don't pay it off each month.

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Apr 23, 2020 17:36:00   #
smf85 Loc: Freeport, IL
 
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.


No, sales tax doesn't apply - but you might pay customs duty which can be substantial. There are exemptions for items carried in and for items purchased on the secondary or retail market but direct purchases or a first sale from a manufacturer generally get hit with duty.

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Apr 24, 2020 02:31:33   #
Fotoserj Loc: St calixte Qc Ca
 
Since you are paying taxes why not buy local and keep you’re money working in your town

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Apr 24, 2020 04:59:19   #
Sunrisepano Loc: West Sub of Chicago
 
Sales TAX. Use TAX. ROT (Retailer Occupation TAx). All have one thing in common. TAX. = more money out of your pocket and into the hands of the politicians.

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Apr 24, 2020 13:08:31   #
Bill Emmett Loc: Bow, New Hampshire
 
Hey Jerry, Just move from NY, to New Hampshire, you'll pay no sales taxes at all. Live Free or Die.

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Apr 29, 2020 21:12:34   #
rehess Loc: South Bend, Indiana, USA
 
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...

some state won a Supreme Court case against Wayfair, and then the dam broke.

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