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

[tschock]

Originally Posted by Griffins

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.

[Exhibitman]

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.

[buymycards]

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.

[familytoad]

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

Ralph