Quote:
Originally Posted by Exhibitman
Guys, before you use some dodgy tax evading mechanism, PLEASE consult someone competent in your state. Taxable events are not limited to transfer of possession; they also include transfer of title. For example, California Revenue & Taxation Code section 6010 defines "Purchase" as including either transfer of title or transfer of possession.
The fact that eBay doesn't collect the tax on an item shipped to OR does not mean you do not owe use tax on the item in your state. You received title to it, so odds are that your state considers you to have purchased it.
My uncle was a tax attorney. His advice to me was just pay the taxes and save yourself the headaches.
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Adam, I said the same thing to check with their own tax advisors AND to be sure to check the specific sales tax rules for whatever state they are in. I certainly do not know everything about every state's laws, and all the constant tax law changes can drive anyone crazy. I got your CA point about the transfer of title and transfer of possession, but based on what Snowman heard from PWCC, there wouldn't be any CA sales or use tax due unless he took possession back in CA of cards he had won off Ebay, that went straight into the vault. So I wonder if the same thing would be true for something he won from an auction house (not Ebay) that also got sent right to the vault with no sales tax charged? If not, then it sounds like Ebay and/or PWCC had to cut some special deal with CA. Now Ebay cutting a deal with all the states to collect and remit sales tax on behalf of all their sellers I get. But PWCC suddenly having to possibly withhold and remit sales tax to CA on something they are just holding in a vault for a customer doesn't make any sense, unless it is something they had to agree to with CA in trying to get themselves set up tax-wise with all the states in advance of launching their new sales platform and operations. Now I'm even more curious as to what people using their vault actually signed up for and agreed to. Very odd if you ask me.