Quote:
Originally Posted by glchen
I think it will be based upon the buyer's ship to zip code, and not the seller's zip code. Therefore, unless ebay changes their software to automatically collect the tax for all sellers, each seller may have to collect tax for all of their buyers and then send these taxes that they collected to all 50 states (or those that have a sales tax), which would be a huge pain. Right now, I only collect tax for buyers in California, and I have to complete a form every year for that. If I have to do that for all 50 states, it would be a tremendous overhead.
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If ebay is able to change their software to both collect and report collections for each state, from there submitting will be a much more manageable task. For my state, I self track my in-state sales and submit one form at year end. It takes me longer to find my password to access my on-line state tax site than it does to submit my taxes. Last year it was less than a 5 min process total to submit for my state. So if ebay automatically tracked and provided a record of all of the annual collections for each state, and each state is as simple as my state, this whole process would probably take no more than an additional 4-5 hours per year.
In regards to increased costs to card collectors, just like every other added cost, sales tax will just get figured into the price. A $3k card will still be a $3k card, now just 5-8% off the price will go to the buyer's state.
I see a whole new venture for online sales tax management.