View Full Version : What the Tax????!!!!!
JollyElm
10-01-2019, 04:03 PM
I know this topic has been covered in different ways before, but this seems like a brand new development. In looking around to try to find cards to spend my ebay bucks on in a couple of days, I decided to start piling things into my cart to see which would have taxes added to the total. Well, in short, it didn't matter what state the item came from, I was getting hammered with taxes right across the board. I didn't put cards from all 50 states into my cart, but every single state I looked at (perhaps 10 different?) had taxes added on. I know the usual people will jump in to chime, "You are always supposed to pay a use tax!" (or whatever), but what I want to know is did ebay start adding taxes to all purchases??? I bought 4 or 5 things this past week and none had taxes attached. It is now October first, so am I right to assume that has something to do with it??? God, that new fee will basically wipe out the entirety of my ebay bucks, so I won't be getting a bargain in any way, shape or form. Ugh.
BabyRuth
10-01-2019, 04:12 PM
Fee-bay is no longer the wild west anymore. The money grab for Massachusetts started today - I won a card for $660 last night on ebay and had a nice $42 sales tax addition!!!
Jason
10-01-2019, 04:14 PM
Sellers, at least on the very small level I do from time to time have the option to choice not to collect tax. I am not sure what the ramifications are to that if any though.
ALR-bishop
10-01-2019, 04:29 PM
I think almost all states have now updated their laws to take advantage of last year's South Dakota v Wayfair decision allowing them to apply sales taxes to catalog and on line out of state retailers and sellers. Texas passed the legislation effective 10-1 this year. I think I read that of the states with sales taxes only Florida and Missouri have not updated their laws. So I assume sales taxes will now apply to almost all eBay purchases. Others may have better info.
swarmee
10-01-2019, 04:37 PM
It depends on the state *YOU* live in, not which state the seller is in. So if your state recently became a use-tax collecting state, you're paying the tax, no matter where the seller is. Why do you think Brent spent so much money to build vaults in a state with no sales tax?
rats60
10-01-2019, 04:49 PM
I got an email from ebay today. They are up to 34 states that they are collecting taxes for.
bmattioli
10-01-2019, 05:16 PM
Blame the Supreme Court. We, as internet buyers knew it was only a matter of time..
frankbmd
10-01-2019, 05:44 PM
Fortunately eBay is addressing the concern of their bidders.
Going forward the eBay Bucks program will be discontinued, but it is being replaced by their new eBay Tax Bucks program.
wondo
10-01-2019, 06:02 PM
Yup - just another reason to use the BST and unlawfully dodge taxes. I am one of those people to which you refer. However, please feel free to rant and rail against those who defraud by trimming / altering cards and stealing from the "collector".
Scott L.
10-01-2019, 06:03 PM
It depends on the state *YOU* live in, not which state the seller is in. So if your state recently became a use-tax collecting state, you're paying the tax, no matter where the seller is. Why do you think Brent spent so much money to build vaults in a state with no sales tax?
This
Peter_Spaeth
10-01-2019, 06:18 PM
I had not expected Massachusetts to start today. It wasn't on the list, or maybe I missed it? Damn. I need a Vault account now.
frankbmd
10-01-2019, 07:53 PM
I had not expected Massachusetts to start today. It wasn't on the list, or maybe I missed it? Damn. I need a Vault account now.
I believe you can set it up online 24/7.;)
Peter_Spaeth
10-01-2019, 08:02 PM
I believe you can set it up online 24/7.;)
And now, I can have my cards ingested.
birdman42
10-01-2019, 08:14 PM
It is now October first, so am I right to assume that has something to do with it???
You are correct, Darren. Quite a few states passed legislation in their spring sessions that took effect today (10/1). A few others updated their sales and use tax regulations to reflect Wayfair. A couple (sorry, I don't have the details in front of me) failed to include de minimis clauses, so all remote sales in those states are supposed to have tax collected.
Here in MD, the law addresses "marketplace facilitators" (e.g., eBay, Etsy), allowing them to collect and remit the sales tax on behalf of the seller.
Bill
Yea, its annoying. but I guess it is what it is nowadays
reminds me of years back...buying a card at a show....and there was always one dealer who would hit you with...." and a dollar fifty more for Uncle Sam please ! "
Buythatcard
10-01-2019, 09:11 PM
Here's the eMail that ebay sent out today. You would think that they would send it our prior to the day they started collecting the tax.
As you may be aware, 11 new states have adopted Internet Sales Tax policies as of October 1, bringing the total to 34 states that now require the collection of sales tax. As the impact of this tax law becomes more apparent, PayPal and eBay are making changes that will make Internet Sales Tax collection less complex for buyers and for you.
Starting in November 2019, the way taxable transactions are processed and how taxes are collected for remittance will change, as follows:
In states where eBay is required to collect Internet Sales Tax from buyers, order totals sent for processing will reflect the gross order amount inclusive of tax.
Once settled, the tax amount will be automatically deducted for remittance to the applicable taxing authority.
A record of the sales tax portion of the order will be available on the Seller Hub Order details page and through our Download order report.
Please note the applicable tax will continue to be paid by the buyer and you do not need to take any action.
We understand that the holiday selling season is nearly upon us and we are working to make this transition as smooth as possible.
Learn more about Internet Sales Tax in the eBay Seller Center. If you have questions about how Internet Sales Tax may affect you, we recommend consulting with your tax advisor, or our partners Avalara and TaxJar.
As always, thank you for selling on eBay.
Sincerely,
eBay Team
jfkheat
10-01-2019, 09:46 PM
I had not expected Massachusetts to start today. It wasn't on the list, or maybe I missed it? Damn. I need a Vault account now.
Here is the list from eBay showing when they start taxing each state.
State
Effective Date
Additional Information
Alabama
July 1, 2019
Alabama
The State of Alabama has a program for simplified sellers use tax (SSUT) under Statute § 40-23-192. eBay has collected simplified sellers use tax on taxable transactions delivered into Alabama and the tax of flat eight percent (8%) will be remitted on the customer's behalf to the Alabama Department of Revenue.
eBay Inc. SSUT Account Number: SSU-R010250382
Arizona
October 1, 2019
Arizona
Arkansas
July 1, 2019
Arkansas
California
October 1, 2019
Please contact the Department of Tax and Fee Administration for further information.
In addition to the sales tax collect and remit requirement, eBay is required by California Department of Tax and Fee Administration (CDTFA), to collect and remit the Electronic Waste Recycling (eWaste) Fee. The eWaste Fee is a fee imposed on the retail sale or lease of certain electronic products that have been identified by the Department of Toxic Substances Control (DTSC). Additional information on the eWaste fee can be found on CDTFA's website.
Please note, the fee will be included with the applicable taxes.
Colorado
October 1, 2019
Colorado
Connecticut
April 1, 2019
Connecticut
eBay Inc. is registered with DRS to collect Connecticut sales tax and will collect sales tax on all taxable Connecticut sales facilitated on our site.
District of Columbia
May 1, 2019
District of Columbia
Hawaii
January 1, 2020
Please contact the Hawaii Department of Taxation for further information.
Idaho
June 1, 2019
Idaho
Illinois
January 1, 2020
Illinois
Indiana
July 1, 2019
Please contact the Department of Revenue for further information.
Iowa
February 1, 2019
Iowa
Kentucky
July 1, 2019
Kentucky
Maine
October 1, 2019
Please contact the Maine Revenue Services for further information.
Maryland
October 1, 2019
Please contact the Comptroller of Maryland for further information.
Massachusetts
October 1, 2019
Please contact the Massachusetts for further information.
Minnesota
January 1, 2019
Minnesota
Small business exemption - Minnesota has enacted a small business exemption for out of state unregistered sellers whose taxable retail sales into Minnesota are less than $10,000 in the previous 12-month period. These sellers are not subject to the Minnesota marketplace tax laws, and eBay will not be collecting sales tax on these transactions.
Nebraska
May 1, 2019
Nebraska
Nevada
October 1, 2019
Please contact the Nevada Department of Taxation for further information.
New Jersey
May 1, 2019
New Jersey
New Mexico
July 1, 2019
Please contact the Taxation and Revenue Department for further information.
New York
June 1, 2019
New York
eBay Inc. is a registered New York State sales tax vendor and will collect sales tax on all taxable sales of tangible personal property that it facilitates for delivery to a New York State address.
North Dakota
October 1, 2019
Please contact the Office of State Tax Commissioner for further information.
Ohio
September 1, 2019
Please contact the Ohio Department of Taxation for further information.
Oklahoma
July 1, 2019
Oklahoma
Pennsylvania
July 1, 2019
Pennsylvania
Rhode Island
July 1, 2019
Rhode Island
South Carolina
October 1, 2019
South Carolina
South Dakota
July 1, 2019
South Dakota
Texas
October 1, 2019
Please contact the Texas Comptroller of Public Accounts for further information.
Utah
October 1, 2019
Please contact the State Tax Commission for further information.
Vermont
July 1, 2019
Vermont
Virginia
July 1, 2019
Virginia
Washington
January 1, 2019
Washington
West Virginia
July 1, 2019
West Virginia
Wisconsin
January 1, 2020
Wisconsin
Wyoming
July 1, 2019
Wyoming
Goudey77
10-02-2019, 02:28 AM
Its good to be an Oregonian. I will be offering my own vault transfer service should you need a middleman :D
Goudey77
10-02-2019, 02:33 AM
On a serious note. This should be a reminder that Net54 has a strong network of collectors who can do business together. Recruit the masses and leave eBay..
toledo_mudhen
10-02-2019, 04:39 AM
As always, thank you for selling on eBay.
Sincerely,
eBay Team
Qcards
10-02-2019, 04:52 AM
I was surprised to find out yesterday that items I am selling from Canada into the U.S. have sales tax applied as well depending on the state.
I read the fine print and eBay states that it doesn't matter where in the world that the item is coming from, it matters what state it is being sold into.
The tax shows on my invoice but I will not receive it, eBay or Paypal will deduct it from my payment and send to the appropriate state.
Peter_Spaeth
10-02-2019, 05:45 AM
Here is the list from eBay showing when they start taxing each state.
State
Effective Date
Additional Information
Alabama
July 1, 2019
Alabama
The State of Alabama has a program for simplified sellers use tax (SSUT) under Statute § 40-23-192. eBay has collected simplified sellers use tax on taxable transactions delivered into Alabama and the tax of flat eight percent (8%) will be remitted on the customer's behalf to the Alabama Department of Revenue.
eBay Inc. SSUT Account Number: SSU-R010250382
Arizona
October 1, 2019
Arizona
Arkansas
July 1, 2019
Arkansas
California
October 1, 2019
Please contact the Department of Tax and Fee Administration for further information.
In addition to the sales tax collect and remit requirement, eBay is required by California Department of Tax and Fee Administration (CDTFA), to collect and remit the Electronic Waste Recycling (eWaste) Fee. The eWaste Fee is a fee imposed on the retail sale or lease of certain electronic products that have been identified by the Department of Toxic Substances Control (DTSC). Additional information on the eWaste fee can be found on CDTFA's website.
Please note, the fee will be included with the applicable taxes.
Colorado
October 1, 2019
Colorado
Connecticut
April 1, 2019
Connecticut
eBay Inc. is registered with DRS to collect Connecticut sales tax and will collect sales tax on all taxable Connecticut sales facilitated on our site.
District of Columbia
May 1, 2019
District of Columbia
Hawaii
January 1, 2020
Please contact the Hawaii Department of Taxation for further information.
Idaho
June 1, 2019
Idaho
Illinois
January 1, 2020
Illinois
Indiana
July 1, 2019
Please contact the Department of Revenue for further information.
Iowa
February 1, 2019
Iowa
Kentucky
July 1, 2019
Kentucky
Maine
October 1, 2019
Please contact the Maine Revenue Services for further information.
Maryland
October 1, 2019
Please contact the Comptroller of Maryland for further information.
Massachusetts
October 1, 2019
Please contact the Massachusetts for further information.
Minnesota
January 1, 2019
Minnesota
Small business exemption - Minnesota has enacted a small business exemption for out of state unregistered sellers whose taxable retail sales into Minnesota are less than $10,000 in the previous 12-month period. These sellers are not subject to the Minnesota marketplace tax laws, and eBay will not be collecting sales tax on these transactions.
Nebraska
May 1, 2019
Nebraska
Nevada
October 1, 2019
Please contact the Nevada Department of Taxation for further information.
New Jersey
May 1, 2019
New Jersey
New Mexico
July 1, 2019
Please contact the Taxation and Revenue Department for further information.
New York
June 1, 2019
New York
eBay Inc. is a registered New York State sales tax vendor and will collect sales tax on all taxable sales of tangible personal property that it facilitates for delivery to a New York State address.
North Dakota
October 1, 2019
Please contact the Office of State Tax Commissioner for further information.
Ohio
September 1, 2019
Please contact the Ohio Department of Taxation for further information.
Oklahoma
July 1, 2019
Oklahoma
Pennsylvania
July 1, 2019
Pennsylvania
Rhode Island
July 1, 2019
Rhode Island
South Carolina
October 1, 2019
South Carolina
South Dakota
July 1, 2019
South Dakota
Texas
October 1, 2019
Please contact the Texas Comptroller of Public Accounts for further information.
Utah
October 1, 2019
Please contact the State Tax Commission for further information.
Vermont
July 1, 2019
Vermont
Virginia
July 1, 2019
Virginia
Washington
January 1, 2019
Washington
West Virginia
July 1, 2019
West Virginia
Wisconsin
January 1, 2020
Wisconsin
Wyoming
July 1, 2019
Wyoming
James, yeah, somehow I missed that. Sigh.
tschock
10-02-2019, 05:59 AM
Blame the Supreme Court. We, as internet buyers knew it was only a matter of time..
Misplaced blame. Talk to your CT reps. They are the ones taxing you. Not the SC.
Buythatcard
10-02-2019, 07:52 AM
You can't blame eBay. They are just collecting the tax and passing it on to the local tax collectors.
Eventually, you will be paying taxes on all of your online purchases. Amazon is already collecting.
It's just a matter of time until the IRS comes down on the AH's and they will also be collecting from the buyer.
Just like death, shillers and card doctors, you can't avoid it.
ALR-bishop
10-02-2019, 08:04 AM
Blame may be the wrong word. but the SC did sort of change their minds on the issue and it was that decision that left the states free to pursue these taxes
bobbyw8469
10-02-2019, 08:10 AM
Fee-bay is no longer the wild west anymore. The money grab for Massachusetts started today - I won a card for $660 last night on ebay and had a nice $42 sales tax addition!!!
Not to beat a dead horse, but wasn't the taxes on these cards already paid when they were manufactured in 1962 or whatever? So basically, every time an item is sold, it will be taxed, no matter how many times it's sold?
samosa4u
10-02-2019, 09:09 AM
I'm pretty sure we all could list a hundred different reasons why this is bad. However, something positive will come out of this as well: first of all, we have all become like robots. Click-click-click - send message - click - send offer - click accept - click-click-click print shipping label. Some folks are too afraid to speak with me over the phone! People have become so comfortable in their own quiet digital world. Now this whole thing is going to make people get off their butts and pick up that phone. There will also be more coffee shop meetings, lunch meetings, and more transactions will be taking place in card shows. And finally, the BST board here (and all the other forums) will get better.
Peter_Spaeth
10-02-2019, 09:19 AM
Who will ultimately pay for it is an open question. Will collectors just fork over more, or will they pay less calculating it as part of the final price like a buyer's premium? I certainly know dealers who worry it will suppress prices.
I just got an email from a merchant essentially saying they will make the customer whole for the tax. Of course, they may surreptitiously raise prices to offset their loss.
Dear Customer,
Everybody likes to save money! I am excited to share B&H’s new way to save you money.
Last year, the Supreme Court ruled that out-of-state retailers must collect sales tax on online sales. As a result, on October 4th, B&H will start collecting tax on shipments to Massachusetts, as required by state law. We have been working hard to develop a solution to eliminate the impact of this ruling on our customers.
Our solution is named Payboo! When you use the new B&H Payboo Credit Card*, you can save the equivalent of the tax — you pay the tax, and we pay you back instantly! Make any purchase at B&H with Payboo, and you will receive an instant reward equal to the sales tax you paid. And at B&H, instant means instant — no expiring points, credits, or coupons to worry about. It’s that simple. (B&H collects and remits state sales tax in accordance with state laws, so all required tax is collected and paid, and B&H issues the instant savings credit to you.)
Payboo is an exciting store credit card with, we believe, the most valuable benefit in the industry — the instant credit equal to the sales tax. As long as you pay your bill on time, you will not incur any interest or other costs. I invite you to apply today at www.BandH.com/payboo.
I know you have many choices where to buy creative tech gear, and I truly appreciate your business. With Payboo, I believe B&H will become an even clearer choice for all your technology needs.
I look forward to a continued great business relationship. Please remember, at B&H the customer always comes first. That’s why we’ve created Payboo to eliminate the impact of sales tax for you.
Please visit us today and start saving!
Thank you,
x2drich2000
10-02-2019, 10:31 AM
And why do you think a merchant would be willing to offer you such a tax reimbursement incentive attached to a credit card? I think we both know the answer has something to do with spending more and not paying the account in full right away.
Case12
10-02-2019, 11:44 AM
Blame may be the wrong word. but the SC did sort of change their minds on the issue and it was that decision that left the states free to pursue these taxes
Correct. The Supreme Court did make the decision, which had been debated for some time. The public was caught up in daily politics drama news and missed this important ruling news.
Case12
10-02-2019, 11:49 AM
I'm pretty sure we all could list a hundred different reasons why this is bad. However, something positive will come out of this as well: first of all, we have all become like robots. Click-click-click - send message - click - send offer - click accept - click-click-click print shipping label. Some folks are too afraid to speak with me over the phone! People have become so comfortable in their own quiet digital world. Now this whole thing is going to make people get off their butts and pick up that phone. There will also be more coffee shop meetings, lunch meetings, and more transactions will be taking place in card shows. And finally, the BST board here (and all the other forums) will get better.
Definitely miss pre-ebay days. Shows at malls, local town hall, and sports dealer shops. Days when you could hang around and talk baseball.
jfkheat
10-02-2019, 10:37 PM
Is it legal for eBay to tax shipping fees? I thought services couldn't be taxed.
James
Is it legal for eBay to tax shipping fees? I thought services couldn't be taxed.
James
They have +/- 8000 lawyers. If they are taxing it, it is most likely ok for them to do. Yes the taxes have started for Texas. This is actually the best thing in the world that could have happened to retail brick and mortar. They have been getting decimated for 2 decades not being on a level playing field. Back in around 1999-2000 it started to be an issue for me when I was in retail computer sales. Customers made me compete with no taxes and it sucked.
.
KMayUSA6060
10-03-2019, 06:57 AM
Fortunately eBay is addressing the concern of their bidders.
Going forward the eBay Bucks program will be discontinued, but it is being replaced by their new eBay Tax Bucks program.
Might as well. The taxes basically negate any savings bonus from eBay Bucks offers.
aconte
10-03-2019, 07:24 AM
Who will ultimately pay for it is an open question.
Well on two of my sales, I got notes from the buyers saying they were sorry
and would have paid more but they had to account for 10% tax charge
to their purchase.
So for those it looks like, I paid for it!
:(
chalupacollects
10-03-2019, 07:57 AM
Looks like 49 more Vaults need to be built for ingestion...
Exhibitman
10-03-2019, 04:33 PM
indigestion...
Yastrzemski Sports
10-03-2019, 05:03 PM
They have +/- 8000 lawyers. If they are taxing it, it is most likely ok for them to do. Yes the taxes have started for Texas. This is actually the best thing in the world that could have happened to retail brick and mortar. They have been getting decimated for 2 decades not being on a level playing field. Back in around 1999-2000 it started to be an issue for me when I was in retail computer sales. Customers made me compete with no taxes and it sucked.
.
As the owner of a store I agree with you. This is especially true with new packs and boxes of cards. They have a very slim profit margin. If someone can go to one of the big online retailers and buy a box for $200 with no tax and free shipping and I have to eat the $15 tax to compete - that may be the difference between making and losing money.
jfkheat
10-03-2019, 10:34 PM
Is it legal for eBay to tax shipping fees? I thought services couldn't be taxed.
James
Answer to my question.
James
mantleman
10-05-2019, 06:20 AM
Just received this email in Canada regarding this.
bounce
10-05-2019, 10:32 AM
Well on two of my sales, I got notes from the buyers saying they were sorry
and would have paid more but they had to account for 10% tax charge
to their purchase.
So for those it looks like, I paid for it!
:(
I've had two $1000+ sales get canceled when they got the bill and saw the tax included.
both buyers thought I was charging them, had to explain to them that's it's eBay collecting and they're doing it for everyone.
I don't think there's any debate that this is ultimately bad for collectibles and will result in lower prices. or at least in the environment of the last couple years, it will slow the increases dramatically.
swarmee
10-05-2019, 10:34 AM
Good; it's time for a market correction.
Johnny630
10-05-2019, 04:34 PM
Boots on the Ground Card Shows might start to Heat Up Again !
Yankees1964
10-06-2019, 06:18 AM
Personally living in PA, I take the 6% into account when I buy on eBay the same way that I took the 20% or whatever into account when I bought from an auction house. I am fortunate to have a full year of great shows near me (White Plains and Philly) and generally buy at those shows, or from the BST (I am always broke for a month after a show anyway!). If anything, the eBay sales tax collection should make shows even better for dealers.
rjackson44
10-06-2019, 06:30 AM
B.s.t never an issue
buymycards
10-06-2019, 07:06 AM
Boots on the Ground Card Shows might start to get Heat Up Again !
I set up at card shows. I have a Wisconsin sellers permit and I pay sales taxes on everything that I sell at shows. I don't charge the customers, so I effectively lose 5.5% on every sale at a show. This has been going on for years. Nothing new. The Wisconsin Department of Revenue has been known to show up at shows to check the dealers to see if they have a sellers permit.
I also pay Federal and State taxes on my net profit at the end of the year, along with around 15% for Medicare and Social Security. When I purchase a collection I have to get if for a really low price in order to make a profit.
Most of my fellow dealers don't have a permit and they don't pay taxes on their sales. That is why most dealers don't accept debit or credit cards, or PayPal or checks. They deal in cash so they can avoid taxes.
It is hard for me to believe that paying sales tax on a purchases is a big hardship for most buyers, and I wouldn't let 5% stop me from buying something for my collection. The people who are cancelling purchases because of the sales tax are flippers, and the 5% eats into their profit.
Rick
Johnny630
10-06-2019, 08:21 AM
I set up at card shows. I have a Wisconsin sellers permit and I pay sales taxes on everything that I sell at shows. I don't charge the customers, so I effectively lose 5.5% on every sale at a show. This has been going on for years. Nothing new. The Wisconsin Department of Revenue has been known to show up at shows to check the dealers to see if they have a sellers permit.
I also pay Federal and State taxes on my net profit at the end of the year, along with around 15% for Medicare and Social Security. When I purchase a collection I have to get if for a really low price in order to make a profit.
Most of my fellow dealers don't have a permit and they don't pay taxes on their sales. That is why most dealers don't accept debit or credit cards, or PayPal or checks. They deal in cash so they can avoid taxes.
It is hard for me to believe that paying sales tax on a purchases is a big hardship for most buyers, and I wouldn't let 5% stop me from buying something for my collection. The people who are cancelling purchases because of the sales tax are flippers, and the 5% eats into their profit.
Rick
Agree Most People nowadays who Set up at shows do this for a living.... back in the 80’s and early 90’s many guys set up at shows had full time jobs, they were weekend warriors. I loved those days. I’d say collector dealers are now under 20% at the major shows vs %80 full time sellers/not collectors. eBay turned everyone into a dealer. Not everyone I’m exaggerating but you get my drift. It’s all about the money now not the cards. Has been for 20 plus years.
I hope shows become the new thing again....that will be cool! Lower prices on vintage have already started.
pokerplyr80
10-06-2019, 09:30 AM
Sales tax is 9.25 out here. I am not a dealer or even much of a card flipper, but when you factor it in along with say 10% ebay fees and 3% for PayPal, or 16-20% for an auction house it makes a difference.
It's hard to find a card you can buy for 70-75% of it's current market value to quickly turn around and sell for a profit. At least for me. And then if I do I would probably just break even trying to sell it. Not worth the hassle.
ValKehl
10-06-2019, 09:49 AM
I set up at card shows. I have a Wisconsin sellers permit and I pay sales taxes on everything that I sell at shows. I don't charge the customers, so I effectively lose 5.5% on every sale at a show. This has been going on for years. Nothing new. The Wisconsin Department of Revenue has been known to show up at shows to check the dealers to see if they have a sellers permit.
I also pay Federal and State taxes on my net profit at the end of the year, along with around 15% for Medicare and Social Security. When I purchase a collection I have to get if for a really low price in order to make a profit.
Most of my fellow dealers don't have a permit and they don't pay taxes on their sales. That is why most dealers don't accept debit or credit cards, or PayPal or checks. They deal in cash so they can avoid taxes.
It is hard for me to believe that paying sales tax on a purchases is a big hardship for most buyers, and I wouldn't let 5% stop me from buying something for my collection. The people who are cancelling purchases because of the sales tax are flippers, and the 5% eats into their profit.
Rick
Very well said, Rick. I sense that your level of personal integrity is much higher than that of most people.
+1 Free and no hassles. Please be careful though as it is always caveat emptor.
B.s.t never an issue
Buythatcard
10-09-2019, 09:13 AM
I set up at card shows. I have a Wisconsin sellers permit and I pay sales taxes on everything that I sell at shows. I don't charge the customers, so I effectively lose 5.5% on every sale at a show. This has been going on for years. Nothing new. The Wisconsin Department of Revenue has been known to show up at shows to check the dealers to see if they have a sellers permit.
I also pay Federal and State taxes on my net profit at the end of the year, along with around 15% for Medicare and Social Security. When I purchase a collection I have to get if for a really low price in order to make a profit.
Most of my fellow dealers don't have a permit and they don't pay taxes on their sales. That is why most dealers don't accept debit or credit cards, or PayPal or checks. They deal in cash so they can avoid taxes.
It is hard for me to believe that paying sales tax on a purchases is a big hardship for most buyers, and I wouldn't let 5% stop me from buying something for my collection. The people who are cancelling purchases because of the sales tax are flippers, and the 5% eats into their profit.
Rick
Rick,
I agree with you 100%.
I also pay my taxes at the end of the year on every single item that I sell. It's all part of running any legit business.
I know sellers who do business on eBay that never record their online earnings. I believe that will catch up with them one day.
Buyers need to understand that it's not the Seller's or eBay's fault for collecting any tax. Eventually, it will be mandatory for all online sales. It's just a matter of time, when the online AH's start collecting too.
Like death, you can't avoid it.
familytoad
10-09-2019, 04:57 PM
Complaining about paying taxes is 243 years too late.
But complaints about how the tax payments are used is timeless.
Ebay sent out the sales tax email in conjunction with Paypal in regards to the new states taxable as of Oct. 1. In the email it said that ebay and paypal would handle the tax and the seller would have to do nothing.
My question is this...... If you are paying for an item on the BST or anywhere else(not ebay) and using regular paypal (not-F/F), is that transanction now going to be taxed by paypal as a business transaction, tax collected and forwarded to the applicable state.
I believe the answer is yes, but have had no dealing either as a buyer or seller this month to test the theory. I have a feeling paypal is going to track the 30 odd states that enacted the law and tax those transactions automatically as well(some vendors had added tax prior).
Further to add, perhaps only the buyer will see it and the seller won't be able to as they don't pay it, ebay/paypal does.
??
tschock
10-09-2019, 05:28 PM
Also....
Isn't ebay over collecting the taxes? If I sell to someone in South Dakota, ebay will collect the sales tax. But if I don't make 200 sales or sell over $100K to South Dakota, does ebay reimburse that/those buyers? I highly doubt it. Or is ebay considered the 'vendor' in this case? Inquiring minds want to know.
CobbSpikedMe
10-09-2019, 05:29 PM
How could Paypal know if the seller already charged sales tax on their own and the buyer is already paying it? That would be double taxation right?
tschock
10-09-2019, 05:35 PM
How could Paypal know if the seller already charged sales tax on their own and the buyer is already paying it? That would be double taxation right?
My 'guess' would be that ebay means they will request the total amount (including sales tax) to paypal and paypal will ensure the total (including sales tax) is deducted from the buyer's account. Paypal only 'knows' since that is the total requested by ebay. Otherwise, it's BAU from the paypal viewpoint.
CobbSpikedMe
10-09-2019, 07:08 PM
My 'guess' would be that ebay means they will request the total amount (including sales tax) to paypal and paypal will ensure the total (including sales tax) is deducted from the buyer's account. Paypal only 'knows' since that is the total requested by ebay. Otherwise, it's BAU from the paypal viewpoint.
Hi Taylor,
I meant when someone sells something off eBay (like on the BST) and the buyer uses PayPal to pay. If the seller charged sales tax then PayPal would have no idea it was included in the amount the buyer transfers.
tschock
10-10-2019, 07:37 AM
Hi Taylor,
I meant when someone sells something off eBay (like on the BST) and the buyer uses PayPal to pay. If the seller charged sales tax then PayPal would have no idea it was included in the amount the buyer transfers.
Andy,
I think ebay's statement with reference to paypal is only in regards to their interaction with paypal and not a comment on paypal's policy in general. I doubt paypal itself will be in the 'tax assessing' game since they are only processing money transfer requests, but I could be wrong.
CobbSpikedMe
10-10-2019, 04:39 PM
Ebay sent out the sales tax email in conjunction with Paypal in regards to the new states taxable as of Oct. 1. In the email it said that ebay and paypal would handle the tax and the seller would have to do nothing.
My question is this...... If you are paying for an item on the BST or anywhere else(not ebay) and using regular paypal (not-F/F), is that transanction now going to be taxed by paypal as a business transaction, tax collected and forwarded to the applicable state.
I believe the answer is yes, but have had no dealing either as a buyer or seller this month to test the theory. I have a feeling paypal is going to track the 30 odd states that enacted the law and tax those transactions automatically as well(some vendors had added tax prior).
Further to add, perhaps only the buyer will see it and the seller won't be able to as they don't pay it, ebay/paypal does.
??
Taylor,
I was referencing Scott's post above regarding PayPal collecting tax on transactions that aren't PPFF like from the BST. That's where I think it could be a problem if they collected sales tax on all transactions.
I can see how paypal could view every non-FF transaction as a taxable sale and apply the states sales tax to the $ amount. It is called goods and services...
tschock
10-10-2019, 05:41 PM
I can see how paypal could view every non-FF transaction as a taxable sale and apply the states sales tax to the $ amount. It is called goods and services...
A ) The assumption would have to be that any request coming directly from the owner of the paypal account that is not a PPFF request would not have already had tax applied to it.
B ) For example, if a small business that doesn't directly link their request to paypal, but accepts paypal funds and has already applied the tax to the invoice sent to me, then if paypal adheres to A above, they are doubly taxing the invoice.
We are all speculating here though on what paypal may or may not do.
I still have the question/concern though of ebay over collecting taxes if I truly am the vendor and haven't met that state's specific threshold of sales.