Hi all
I got a bunch of Cadillac and Riviera trim from a buddy that I decided to sell on ebay. I had a buyer who wanted a couple pieces, so we negotiated a price including shipping. When he purchased the items I was surprised to see a tax added onto his purchase, $8.86 tax on a $100 purchase+shipping. He lives in New York state so I'm guessing the State is taxing ebay sales now. Has anybody encountered this before? Oregon, where I live doesn't have a sales tax so I'm not sure, are all states taxing internet purchases or is this just New York so far? Anybody run into this before now? I have my opinion on taxes but I don't want this thread to become a rant on taxes. Although if states are implementing tax on internet sales those of us selling parts in other states need to be aware of it.
John

 

Ebay has been doing this for months, I don't know when they started but it stems from the states winning their court case about not getting taxes on out of state purchases.
so now ebay collects state sales tax on every item sold thru them if a state has sales tax, They started doing it and never notified anyone using the site as far as I know.

 

Thanks Nick, I didn't know that. I get messages from ebay every once in a while, it seems like this would have been something they could have let us know about. Oh well, one more fee to consider when buying/selling parts there.
John

 

HEY JOHN
It is not only ebay
amazon
summit
both added / charged tax on recent purchases i made
NO surprise i am in the peoples republic of minnesota

 

Sales Taxes for Internet Transactions - Which States?

https://www.thebalancesmb.com/intern...he-law-4164865

 

Yeah, it's BS. I had a vendor charge me sales tax for out of state purchase.

First of all, it's USED. The government gets sales taxes on NEW things. Yes, I know they say differently, but stuff like this has led to revolution before, so they should listen.

Secondly, it's out of state.

 

How does one tell Ebay to go perform a dirty act on itself?

 

This is a fiction. You buy a used car, you pay sales tax on it. Buy anything at a used bookstore. You'll pay sales tax on it. Ditto for anything you buy at a Goodwill or other thrift shop. Buy anything at an antique store, where, by definition, everything for sale is used, and you'll pay sales tax.

I wouldn't blame ebay, Amazon, etc. for collecting sales tax. Amazon in particular fought taxing of internet sales tooth and nail. They collect it because the law requires them to, not because they're trying to stick it to the purchasers or anything like that.

 

I just noticed this as well. My question is :
Do we as sellers have any need to do anything about this?
Do we report this tax to the state?
Do we have any responsibility about this?


Larry

 

No, I don't think so. You as the seller are not collecting the tax, Amazon and ebay are. THEY will send the tax to the appropriate taxing authority. Since you as the seller do not actually receive the sales tax the seller paid, you have nothing to report to the state.

Individual-to-individual sales, such as made between two parties to buy something (not a car) sold on, say, craigslist or through a newspaper classified ad, are not subject to sales tax. It's similar to a garage sale. Garage sales are occasional sales (not a regular business), and whatever you buy is directly from a private individual, not a store or other kind of company.

Remember, too, with private party car sales (such as through a craigslist ad), you as the seller do not collect the sales tax. The buyer reports the sale and the sale price when he goes to title the car in his name, and the state collects the sales tax at that point. The seller does not report anything to the state (although some states require that the license plates removed from the sold car be returned to the state).

 

As explained to me, its not a tax on a product. It is a tax on the transaction.

 

rock auto charged me a tax last time i got something from them.

 

we used to go to a swap meet in nebraska years ago and when you got to the gate to pay they gave you a tax form to fill out on your sales of the day.the closest trashcan was full of em.

 

Its individual states ordering Ebay to collect tax for purchases by their states residents. I know Indiana went o. In July and Ohio started sept 1st. If you have a vendors license or tax ID for your state for resale you can file your exemption from tax just the same as you do with anything else you purchase on your state for resale. Ebay just never informed anybody which they didnt legally have to.

 

Officially its called a Sales AND Use tax. Used items fall under the Use rule.

 

Are you the kind of guy that would charge sales tax for a private sale?

 

Then it should be a fixed rate. Not based on valuation of the purchase.

Its a tax. Anything else is a matter if semantics. IMPO.

 

I don't understand the question. No, I'm not "the kind of guy" who would charge sales tax. I'm not a business, and the law doesn't require me to. But that doesn't mean that the car I sell to someone won't have sales tax charged on it by the state when the buyer titles it. Sales tax IS collected at some point on any sale of a car, new or used, assuming the car is titled and registered.

 

^^^^^ Yep...What he said ^^^^^

 

You mentioned that you were in favor of the excessive, onerous tax laws, so I asked if you would be the kind of guy to charge sales tax, since sales tax is required on private sales, but most Americans ignore it as the governmental overreach that it is.

 

Are you on drugs? Where did I say this???? I described the tax laws as I understand them. Doesn't mean I'm in favor of them. I said I don't blame ebay and Amazon for collecting the tax because they're only doing what the law requires. Doesn't mean I'm in favor of the tax laws. Stop putting words in my mouth.

 

Nah, I'm not on drugs. Wish I were. Glad you clarified things.

 

I'm surprised anything I said needed clarifying.

 

Que this thread getting closed down because it's getting testy in 3... 2... 1...

 

If that's all it would take to close a thread...they run a pretty tight ship around here.

Regardless, here in the Great State Of Texas, I do not collect sales tax on a private party vehicle sale. The buyer would pay it when changing title and plates the car / title, etc. However, if a registered dealer sells a car, they would typically, collect the sales tax and send the $$$ to the state. Same with a registered utility trailer.

In Oklahoma, regular ol' utility trailers don't require plates. So most of those would change hands without a sales tax or registration fee.

 

Happens on PayPal now also.

 

It's now everywhere on the Web. All web vendors, even the littler guys. If your state collects sales tax on sales (of anything, including used items) you will be taxed. If your state does not, you won't. People selling on eBay and such don't have to worry about it, eBay does the collection and reporting.