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  #1  
Old 01-05-2019, 04:14 PM
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Default Ebay Sales Tax on Everything Now?

Well, it appears eBay is now charging sales tax on everything (including items from out-of-state sellers). I live in WA and just got hit up for sales tax from a CA Seller. I tried eBay's "Buy It Now" for 8 different out of state sellers, and all 8 were showing sales tax.

Perhaps this has already been discussed, but I did not realize every purchase (regardless of seller's locale) would be taxed in 2019. In my case, the tax amount varies, but averages just above 10%.

Is anybody else experiencing this same thing?

Last edited by perezfan; 01-05-2019 at 05:15 PM.
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Old 01-05-2019, 04:17 PM
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I just bought and paid for some cards (a few minutes ago) and didn't see any tax from an out of state (to me) seller.
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Old 01-05-2019, 04:20 PM
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Interesting....

I wonder how they are targeting the people who must pay the tax. My actual purchase + the 8 items I previewed ALL wanted to charge sales tax in excess of 10%.
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Old 01-05-2019, 04:26 PM
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I think it has to do with your state. I noticed when I listed stuff that two states (WA and MN I think) were assessing sales tax on my listings if sold to their residents even though I am in CA. You might check with your state's board of equalization.
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Old 01-05-2019, 04:37 PM
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Originally Posted by Exhibitman View Post
I think it has to do with your state. I noticed when I listed stuff that two states (WA and MN I think) were assessing sales tax on my listings if sold to their residents even though I am in CA. You might check with your state's board of equalization.
You’re right. I just got off the phone with eBay, and they confirmed it. Sales tax will be implemented by state, as follows...

January-
Washington
Minnesota

February-
Iowa

April-
Connecticut

May-
New Jersey

July-
Alabama
Oklahoma
Pennsylvania

I’m sure other states will subsequently follow. But that’s as far as eBay would say for the time-being. Bummer
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Old 01-05-2019, 05:11 PM
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You would think that eBay would notify all of its sellers and buyers just what to expect. If it wasn't for this board, I would never have heard a single word about it.
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Old 01-05-2019, 05:15 PM
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As a test, I went to checkout with a few random things in my cart from a couple of different states (with FL and NC, I believe), and only the ones from California hammered me with tax.
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Old 01-05-2019, 05:17 PM
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So you must live in CA.

Enjoy the out-of-state purchases while you still can!

Last edited by perezfan; 01-05-2019 at 05:17 PM.
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Old 01-05-2019, 05:28 PM
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So you must live in CA.

Enjoy the out-of-state purchases while you still can!
Yeah, and when ebay does their 15% off coupons, buying anything from out here would basically negate the discount you were looking to get. Frickin' bummer!!!!!
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Old 01-05-2019, 06:11 PM
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Don't get me wrong, I'm all for paying taxes when it makes sense....

I understand paying sales tax on NEW things, but for used items and hobby collectibles that are not new, it just doesn't make sense. What could happen is you could buy something on ebay (taxes collected), sell it (taxes collected), the person that buys it from you could sell it (taxes collected). When does it stop. Basically it's a tax for selling anything. Where I live there are things that are tax exempt, for example FOOD. Why can't there be exemptions for USED crap?

What this amounts to is being taxed on ANYTHING that is purchased, even if taxes had been paid on it before. In my book, that's bullshittt.

If it's collecting taxes on hobby related materials that is NEW (for example, card pages or holders, etc) then hit me up on taxes, I'm happy to pay them.

Buy something on Amazon or ebay that's new, TAX it. Buy a frigging baseball collectible that is not new, then leave it the PHUC alone.

Someone needs to start a virtual/internet "Boston Tea Party".
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Last edited by Fred; 01-05-2019 at 06:43 PM.
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Old 01-05-2019, 06:41 PM
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Ahhh. This explains the mystery charge to my PP account. The other day I bought a PC for $7.75/dlvd. The charge showed as $7.75, but then there was a wierd separate mystery charge of $.78, which is WA sales tax (10.1%). I guess the party's over. Tax in HA, now tax on eBay...soon tax everywhere.
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Old 01-05-2019, 07:08 PM
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Didn't California propose charging tax on every text message? So, who collects the eBay tax and then is responsible for paying it? Please don't tell me the seller.
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Old 01-05-2019, 07:36 PM
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So as a collector and not a business if I sell something in one of the state's you said do I collect the tax and then have to pay it on a tax form at tax time with my personal taxes? If so looks like I won't be selling anymore and most casual collectors won't either.
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Old 01-05-2019, 08:07 PM
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Will the tax come from all sellers or just the ones over a certain dollar/item amount per year?
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Old 01-05-2019, 08:40 PM
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Originally Posted by keithsky View Post
So as a collector and not a business if I sell something in one of the state's you said do I collect the tax and then have to pay it on a tax form at tax time with my personal taxes? If so looks like I won't be selling anymore and most casual collectors won't either.
No, your personal taxes are paid to your state. You would either send the cash to that state after filling out their form or, more likely, eBay would do it for you.
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Old 01-05-2019, 09:21 PM
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No, your personal taxes are paid to your state. You would either send the cash to that state after filling out their form or, more likely, eBay would do it for you.
Except here in Mass you need to get a sales tax number from the revenue dept. Without it you don't have the right to collect sales tax. With it you do, but you also can file paperwork with a vendor to be exempt from sales tax on items for resale.


So will Ebay handle the paperwork of getting the tax number for me? And filing all the forms which have varying deadlines depending on overall sales?


Or do they collect and send me the tax, which I have no right to collect and essentially no way to pay to the state as there's no resale number to apply the payment to.


The first way pretty much wrecks Ebays claim to be "just a venue"
The second basically forces casual sellers to break state law.
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Old 01-05-2019, 09:24 PM
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Also, to be entirely correct, ours is a sales and use tax, so if I buy from another state, and Ebay forces me to pay their sales tax, then I'm technically required to pay my states use tax as well. (which has always been true, but I don't know anyone who actually pays that)
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Old 01-05-2019, 09:54 PM
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Also, to be entirely correct, ours is a sales and use tax, so if I buy from another state, and Ebay forces me to pay their sales tax, then I'm technically required to pay my states use tax as well. (which has always been true, but I don't know anyone who actually pays that)
If you buy from another state they will charge you Sales tax based on your state and send the tax collected to your state. Hence you don’t need to pay Use tax as they already received it from the sale side of the transaction.
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Old 01-05-2019, 10:34 PM
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https://www.ebay.com/help/selling/fe...harges?id=4121

seems like some of the states exempt sellers from collecting sales tax if sales to that state are less than $10,000. At least the first two were that way (Minnesota & Washington).
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Old 01-05-2019, 10:41 PM
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Do you have economic nexus in California?

Effective April 1, 2019, California considers retailers who make more than $100,000 in taxable annual sales or conduct more than 200 transactions annually to have economic nexus. This means the state considers these sellers are now obligated to collect sales tax from buyers in that state.

I always thought you had to be in business to collect sales tax. Guess that's why the states are putting dollar thresholds. Sufficient nexus if $100k or higher...that makes sense...stinks still though.
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Old 01-05-2019, 11:00 PM
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Per eBay for marketplace responsibility tax states: “Once eBay starts to collect tax in the above states, no action is required on your part, and there will be no charges or fees for eBay automatically calculating, collecting and remitting sales tax”
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Last edited by Exhibitman; 01-05-2019 at 11:01 PM.
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Old 01-06-2019, 04:54 AM
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How many cards do you have to sell each year to qualify as a "dealer" and sales tax exemption. May give you an incentive to buy/sell some cards just to qualify.
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Old 01-06-2019, 10:28 AM
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Originally Posted by GeoPoto View Post
How many cards do you have to sell each year to qualify as a "dealer" and sales tax exemption. May give you an incentive to buy/sell some cards just to qualify.
Isn't there a form?
Like starting any small business?
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Old 01-06-2019, 03:27 PM
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In CA you just have to register to get a resale permit. But, if you get into the system two facts apply:

1: You have to file a sales tax return every year or more frequently if the state says to; and

2: You have to track your untaxed buys and remit use tax.

It isn't just a free sales tax pass: if you abuse the exemption and you are caught, you will have trouble.
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Old 01-06-2019, 04:02 PM
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As this goes nationwide, I'll be interested to see how this affects eBay sales. Seems like a sneaky rollout on eBay's part. At some point buyers will catch on. The question is will they care or will they start factoring it in a la the juice in an AH.
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Old 01-06-2019, 10:09 PM
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eBay is handling all of the collection and remittance of the sales tax..but, how do they know what is taxed and not taxed in each of these states...my game used jerseys are clothing, and, clothing is not taxed in many states...how do they exclude collection of sales tax for certain items?
I live in a state where clothing is tax free...any game used jerseys I buy, wherever they are from, should not be taxed...
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Old 01-06-2019, 10:31 PM
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Quote:
Originally Posted by Exhibitman View Post


2: You have to track your untaxed buys and remit use tax.
Isn't that just for personal use purchases and not inventory related purchases?
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Old 01-07-2019, 02:11 AM
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Per eBay for marketplace responsibility tax states: “Once eBay starts to collect tax in the above states, no action is required on your part, and there will be no charges or fees for eBay automatically calculating, collecting and remitting sales tax
I wonder how long it will be before eBay starts charging for that service?
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  #29  
Old 01-07-2019, 07:21 AM
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.

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Old 01-07-2019, 10:02 AM
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I wonder how long it will be before eBay starts charging for that service?
I'm sure that it costs eBay a lot to collect and send the tax to the States. The executives at Ebay are smart. It would not surprise me to learn that eBay has already negotiated with the States to deduct their costs of collecting the tax from their distributions to individual States.

It could be a great deal for both eBay and the States.
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Old 01-07-2019, 10:18 AM
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With the windfall that the states will be receiving as this internet tax net grows wider even beyond ebay, I wonder if they'll reduce the tax rates?

Rob M
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Old 01-07-2019, 12:47 PM
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When I ordered my ebay shipping supplies and paid for them with my quarterly ebay supplies coupon, I was charged sales tax. This quarterly coupon does not cover the sales tax (as indicated in t/c), so I had to use $12 of my ebay bucks to get my "free" ebay s/h supplies. What is weird is I have paid for multiple other things since January 1st, including within my own state, and have not been charged any sales tax anywhere except here. The supplies mailed out of KY, so I am not sure why this state is charging sales tax now. Perhaps this supplies vendor is large enough they are collecting for my home state. Hopefully ebay will change the terms on this coupon to allow it to cover the sales tax on my "free" stuff.

Last edited by savedfrommyspokes; 01-07-2019 at 12:47 PM.
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Old 01-07-2019, 01:49 PM
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Originally Posted by savedfrommyspokes View Post
When I ordered my ebay shipping supplies and paid for them with my quarterly ebay supplies coupon, I was charged sales tax. This quarterly coupon does not cover the sales tax (as indicated in t/c), so I had to use $12 of my ebay bucks to get my "free" ebay s/h supplies. What is weird is I have paid for multiple other things since January 1st, including within my own state, and have not been charged any sales tax anywhere except here. The supplies mailed out of KY, so I am not sure why this state is charging sales tax now. Perhaps this supplies vendor is large enough they are collecting for my home state. Hopefully ebay will change the terms on this coupon to allow it to cover the sales tax on my "free" stuff.
They may now automatically add tax to shipping supplies because they are not generally items you are buying to resell. You are buying them to use them and do not qualify for nontax status.
They used to send me quarterly coupons through my messages and I haven’t received any in a while. I am going to contact them to find my supply money. Thanks.

Last edited by Yastrzemski Sports; 01-07-2019 at 01:50 PM.
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Old 01-07-2019, 08:23 PM
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Originally Posted by Yastrzemski Sports View Post
They may now automatically add tax to shipping supplies because they are not generally items you are buying to resell. You are buying them to use them and do not qualify for nontax status.
They used to send me quarterly coupons through my messages and I haven’t received any in a while. I am going to contact them to find my supply money. Thanks.
My state has a $100k (no transaction) threshold for having to collect taxes, so my guess is that they are collecting for my home state. No longer need to claim the value of my free supplies on my use tax filing.


I have not received a message about the ebay supply coupon in a few years. However, you can access your code by clicking on the "promotions" tab and then clicking on "subscriber discounts". Your code will be found when click on "see details" under the shipping supplies box.
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Old 01-09-2019, 09:05 PM
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They used to send me quarterly coupons through my messages and I haven’t received any in a while. I am going to contact them to find my supply money. Thanks.
Go to: https://www.sd.ebay.com/subscriberdiscounts

Assuming you have an eBay Store subscription, the first item should be a link to your quarterly coupon code for shipping supplies based on your store subscription level.
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Old 01-10-2019, 06:25 AM
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Quote:
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With the windfall that the states will be receiving as this internet tax net grows wider even beyond ebay, I wonder if they'll reduce the tax rates?

Rob M
That is truly funny. I will more likely see a Chocolate, Rainbow colored, T-Rex-acorn before my state (Illinois) decides they have too much tax revenue and can start lowering rates! But that was funny.
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Old 01-10-2019, 06:54 AM
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Go to: https://www.sd.ebay.com/subscriberdiscounts

Assuming you have an eBay Store subscription, the first item should be a link to your quarterly coupon code for shipping supplies based on your store subscription level.
Thank you for that!! I was wondering where my coupon was last quarter!
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Old 01-10-2019, 06:58 AM
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Quote:
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With the windfall that the states will be receiving as this internet tax net grows wider even beyond ebay, I wonder if they'll reduce the tax rates?

Rob M
Rob, of course they will Not. They will just spend more. Many states are already in dire straits (see Illinois), and very fiscally responsible states like California (sarcasm) have vowed to provide global health care to all, including “non citizens”. Most Politicians are morons and they would rather pass laws and spend money than pay down debt and unfunded obligations. It’s like giving a 10 year old a $1000 - you’ll get a bunch of candy and Fortnite skins!
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Old 01-10-2019, 12:56 PM
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Thank you for that!! I was wondering where my coupon was last quarter!
Ok, so if you go to My eBay - under the account tab Manage My Store - then on the left click Subscriber Discounts. Your coupon is there.

We used to get a message from them every quarter when the coupon was available. I hadn’t noticed that it has probably been 6 months since I got supplies. I was assuming they ended the program. They just made it more difficult to cash in on their offering to stores.

Thanks for mentioning the supplies. I am going to use my $50 today. Much appreciated.
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Old 01-10-2019, 05:28 PM
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I was going to reply to this thread, but when I reached to put a plastic straw in my Diet Dr. Pepper, I was arrested.
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Old 01-12-2019, 12:57 AM
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Originally Posted by Bram99 View Post
That is truly funny. I will more likely see a Chocolate, Rainbow colored, T-Rex-acorn before my state (Illinois) decides they have too much tax revenue and can start lowering rates! But that was funny.
Ditto California...................
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Old 01-12-2019, 12:58 PM
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Personally, I can see some great opportunities for new business in sales tax exempt states. One could create a po box type mail center for buyers in high tax states and then mail the item to the subscriber tax free as this is address based.

Here in Detroit there are many businesses that provide po boxes to Canadians looking to avoid tax and excessive shipping on bought goods and no one bats an eye. I am sure the Canadian tax authorities hate it, but they advertise openly.

I know people are going to jump on this as working the system, but as I consider sales tax on used goods a sham in excess of skipping tax on on those goods...I couldn't care less.
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Last edited by JustinD; 01-12-2019 at 01:01 PM.
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Old 01-12-2019, 01:42 PM
MikeKam MikeKam is offline
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Quote:
Originally Posted by JustinD View Post
Personally, I can see some great opportunities for new business in sales tax exempt states. One could create a po box type mail center for buyers in high tax states and then mail the item to the subscriber tax free as this is address based.

Here in Detroit there are many businesses that provide po boxes to Canadians looking to avoid tax and excessive shipping on bought goods and no one bats an eye. I am sure the Canadian tax authorities hate it, but they advertise openly.

I know people are going to jump on this as working the system, but as I consider sales tax on used goods a sham in excess of skipping tax on on those goods...I couldn't care less.
I'm a Canadian using one of those PO boxes to save on the cost of shipping, but I can assure you that I still pay taxes on every item that is purchased. Items still go through the regular import process and taxes are calculated which I am responsible for.

The only real benefit is that the actual cost of shipping is lower - which is still great as I'm probably paying a third of what I used to haha.
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Old 01-12-2019, 01:46 PM
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Originally Posted by Rhotchkiss View Post
Rob, of course they will Not. They will just spend more. Many states are already in dire straits (see Illinois), and very fiscally responsible states like California (sarcasm) have vowed to provide global health care to all, including “non citizens”. Most Politicians are morons and they would rather pass laws and spend money than pay down debt and unfunded obligations. It’s like giving a 10 year old a $1000 - you’ll get a bunch of candy and Fortnite skins!
Ryan, you got me. Until I looked it up, I assumed Fortnite skins referred to a condom that lasted two weeks.
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Old 01-12-2019, 01:54 PM
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Quote:
Originally Posted by frankbmd View Post
Ryan, you got me. Until I looked it up, I assumed Fortnite skins referred to a condom that lasted two weeks.
That’s classic Frank! I have 3 boys (15, 13, and 10) and Fortnite is bigger to these kids than cards are to us cardboard nuts. I have grow to hate Fortnite, especially when my kids fight me over spending $$ on Fortnite skins. If the states were smart, they would tax Fortnite - I don’t think internet purchases of games that are streamed, or the intangibles purchased on those games (like skins, virtual weapon, extra lives, etc) are taxable yet.
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Old 01-13-2019, 05:40 PM
Santo10Fan Santo10Fan is offline
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I'm in Illinois and added an item from CA seller to check what you mentioned here. Did not see sales tax added to invoice.
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Old 01-13-2019, 05:57 PM
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Quote:
Originally Posted by Santo10Fan View Post
I'm in Illinois and added an item from CA seller to check what you mentioned here. Did not see sales tax added to invoice.
Try that with other CA sellers and see if it is added. I'm out here and once in awhile when I do a test by adding something to my cart, a CA seller won't have the sales tax factored in for some reason. Don't know if it's on purpose or some some sort of crack in the system.
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Old 01-13-2019, 06:33 PM
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If you live in CA and buy a card from a CA seller, you get taxed.
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Old 01-13-2019, 07:44 PM
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Yeah, why let facts get in the way...

canotax.jpg

Red box (added from the actual listing) shows item location as California. I live in California, and like I specifically said, sometimes the tax doesn't show up.


Another two CA cards I put in my cart cost around $400 and had tax of $32+ listed...

catax.jpg
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Old 01-14-2019, 06:18 AM
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Without knowing for sure, I would hypothesize that eBay is now adding sales tax for specific states when out-of-state purchases are being shipped to that state (i.e. Use Tax), but is still leaving it up to sellers who reside in those states to collect and remit Sales Tax to their state as before. This would make it appear hit-and-miss for application of sales tax for in-state buyers. Did the Wayfair court ruling that all of this was based on even speak to application of in-state sales tax for internet purchases?

I haven't tested this theory. Just throwing it out there for consideration.

Last edited by thecatspajamas; 01-14-2019 at 06:20 AM.
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