Is buying vintage cards on Ebay subject to SALES TAX????
 

I am not talking about paying tax on the profit you make on a card. I am talking about the PURCHASE of a vintage baseball card off of Ebay or thru one of the various auctions houses. For example, let's say you buy a 1959 Topps Don Mossi PSA 9 for $100. Are you supposed to pay 7.5% sales tax on the card?

If you live in the same state as the seller, you should, unless you have a tax #

What if you don't live in the same state? Do I need to declare it on my taxes? Add 6.5% to all my purchases?

If the seller does not collect taxes then it falls under the "use tax" regulations for your state. Use tax is declared on your income taxes.

But Im not buying them for personal use. I am buying them to resale.

Sellers are suppose to collect sales tax when they sell anything to there own state. If it is sold out of state then the buyer is suppose to pay the sales taxes to there own state. Not many people do it though.

Then as Jay previously mentioned you will need a reseller's certificate. You will then give a signed document with this number to the seller and the seller will not collect sales tax. You will pay taxes when you sell the card in the course of doing business. You will also need other business licenses based on the laws in your state.

For any items you purchase for resale from outside of your home state, you do not have to pay your state's use tax on these purchases....this is according to my accountant. Obviously you would need a business license for your business to be eligible to avoid paying these use taxes.

In California at least you need not only a business license but a resale license from the State Board of Equalization.

Seriously? State Board of Equalization?
I guess some animals are more equal than others.

There is no statewide business license in CA. Individual cities and/or counties have business license requirements and tax structures. Los Angeles, for example, has a gross receipts tax for many trades and businesses, which sucks ass big-time since you owe taxes even if you lose money on the whole, and forces many of us to locate our businesses in Burbank, Pasadena, or a number of other municipalities that collect only a flat rate tax for the year. My business in Burbank gets hit up for about $100 a year in business license fees, but my sole year in L.A., virtually the same gross receipts, cost me over two grand. It is a damned protection racket. The L.A. business license auditor popped into my office when it was in Hollywood and all but said "I smell smoke; pay up." Moved to Burbank as soon as my lease expired. But I digress...

As for the OP, sales tax is either collected on the purchase by the seller or you are required to declare the purchase and pay your state's use tax, which is the functional equivalent of a sales tax. In CA it is paid on the same tax return form as your sales tax if you have a resale permit, or on your state income tax return. However, every state has different rules. It is an administrative nightmare if you have a business in multiple states.

What has caused confusion as far as internet sales is that the internet companies and big players in internet sales [like Amazon] have fought tooth and nail to try and prevent the states from forcing them to collect and remit sales taxes. The laws are also riddled with exceptions to tax requirements, like food, which is not taxed in CA.

Wisconsin
 

In Wisconsin, anything that is purchased outside of Wisconsin, whether the purchase is eBay, Walmart, or a flea market, is subject to"use" tax. If you have a state sales tax number and you are buying to resell, the use tax may not apply, because you will pay sales tax on the sale of that item when it sells.

If you don't have a sales tax number, then you will need to pay the use tax, although if you don't have a sales tax number, then you probably aren't reporting any of this income anyway.


If you make a purchase in Wisconsin, then you have to pay sales tax on the item, unless you are buying the item to resell, and once again, you should have a sales tax permit. A few years ago, a state tax agent came to a show in Wisconsin and went to each dealer and asked to see their sales tax permit.

I buy all of my cards from Ralph in Rahway.
Much easier.

;)Ralph