Billbobboy42 Loc: Center of Delmarva

I recently purchased via eBay auction a like new (2021)Honda Trail bike. This bike is in such demand that the wait time for one ordered at a Honda dealer is expected to be several months. My local Honda dealer would not even return my calls.
Since eBay now collects at time of auction sales taxes from buyers living in states that charge sales tax, I paid $348.00 tax on the winning bid price. That amount is correct for my state. My problem is how to provide my MVD with bona-fide proof of taxes paid. The only info on my eBay transaction page in reference to sales tax is "Taxes paid $348". No reference to the state. I doubt the MVD clerk will accept that info when I go to get title & tags. I have searched high and low on eBay and PaPal help with no results.
Sorry for the long explanation but I thought it necessary. My question: has anyone here who lives in a state that has a retail sales tax purchased a motor vehicle from a seller in another state via Ebay since the advent of Ebay tax collection ? If so, what proof of tax paid did you provide your MVD that was acceptable? I would really rather not pay the tax twice.

47greyfox Loc: on the edge of the Colorado front range

You might ask the Maine DMV folks the same question? You can’t possibly be the first. Also a good idea because every state is different. Good luck.

I’m also wondering the details that eBay reports to a state for motor vehicles.

jerryc41 Loc: Catskill Mts of NY

Interesting situation. Since eBay said that state taxes were paid, and you live in that state, that should cover it. Let us know how this turns out. I haven't bought vehicles off eBay since they started collecting sales tax.

photoman43

Take this for what it is worth. I believe a state has the right to tax (again) a motor vehicle purchased in another state when that vehicle gets registered in the new state. When I moved to Texas 42 years ago, I recall having to pay sales tax on the value of my auto coming from another state.

Some states may offer a credit for taxes already paid in another state.

Check out the rules at your state motor vehicle bureau and/or ask your accountant.

Here is hat I found to be the current rules for Texas:


https://comptroller.texas.gov/taxes/motor-vehicle/sales-use.php

Dannj

It doesn’t seem like this should be a problem. I would think your eBay receipt would suffice but as others have said, contact the DMV and ask.

Country Boy Loc: Beckley, WV

I agree calling DMV and asking the question. About your bike being in great demand, my Honda dealer has a large empty show floor because dealers can't get any bikes. Right now all bikes are in great demand.

jerryc41 Loc: Catskill Mts of NY

I bought a Honda Gold Wing while on vacation in NH, and I registered it there, even though I had to pay property tax on it. By the time I registered it in NY years later, the value was way down, so sales tax wasn't a major problem.

It used to be that a husband/wife could give a vehicle to a spouse and not pay sales tax. I guess that got to be too popular because they changed it. Now, the sales tax is based on the current value.

Picture Taker Loc: Michigan Thumb

You might contact Ebay by phone and explain it and get a copy showing the tax or contact the the Motor Vehicle Dept. and they should know that Ebay collects state tax.

Billbobboy42 Loc: Center of Delmarva

Thanks. That is on my to do list. But first eBay needs to fix a Transaction screw up. Transaction was completed on June 18. About a week and a half after the auction was completed eBay canceled the transaction. According to the seller, eBay claimed he used the wrong auction category; most likely should have been eBay motors or Motorcycles. PayPal refunded the total I paid, including my CC account. Now it is 19 Jul and no "fix". I am in possession of the bike, as I arranged for shipping. Thus, I am in a quandary at the moment. The seller has received his funds, so no worry on his part. I have no illusion of getting a free motorcycle, but I want the bike - it only has 29 miles on the odometer. It cost me $903.00 to have it shipped; if I had to ship it back I would be $1806.00 out of pocket with nothing to show for it. The Quandary marches on.

Picture Taker Loc: Michigan Thumb

Good luck and have safe rides

wrangler5 Loc: Missouri

Presumably the seller got the purchase price, minus the ebay fees, but unless ebay refunded the taxes to you, they still have 'em. If the transaction is cancelled as far as they are concerned, they should return the taxes to you, and you can just pay when you title the bike. (But that probably makes too much sense, so another wish for good luck to you.)

Effate Loc: El Dorado Hills, Ca.

When I recently purchased a new pickup out of state the dealer collected the estimated use tax for my county in California, sent collected tax to Ca. DMV and when I registered the vehicle I paid the difference in what was collected and what was ultimately owed in my jurisdiction.

BBurns Loc: South Bay, California

Not to be alarming but please keep in mind that eBay did not sell it, they are just the intermediary.
I would contact the seller directly, through eBay, and request a 'Bill of Sale'.
It should include the Model & Serial numbers of the exact vehicle you purchased along with the amounts you paid for it and the tax paid as well.
If it was ever registered, it should have a title. That is yours, so request it.
Once you get the ID of the vehicle, you may wish to have your local police department run the numbers to see that it is clean.
It may be a good idea to also do this in the state it is being purchased from.

Make sure it is legal and has a clean title before you take delivery.
If it is stolen and you have it, it will be confiscated and you will loose your money.
You can cancel the transaction and reverse your payment if you have not yet accepted the item.

Billbobboy42 Loc: Center of Delmarva

As I posted earlier I am in possession of the bike. Included is a signed title among other paperwork.

JimBart Loc: Western Michigan

As a former state tax auditor you should have a bill of sale indicating the purchase price. Since you did not pick up the bike out of state you do not owe that state a sales tax. If the seller maintains a presence in your state he is obligated to collect sales tax for your state. If he is a dealer he still has an obligation to collect and remit the correct sales tax to your state. Your bill of sale should include the purchase price, handling fees, trade in value if applicable plus sales tax. Each state has an appropriate form # for vehicle sales. This is all you need plus copies of any and all pertinent remittances (deposit ck, payment ck,tax ck etc) made to the dealer. They should be able to take care of the rest for tax payment. If the purchase was from an individual you may be asked for their name etc especially if tax was sent to them
Title transfers are another matter but since you have hopefully a clear title your state should issue you one in your name.
Hopes this helps and good luck.
( one reason I don’t make large purchases via the Internet)