eBay wants Sales Tax now?

Discussion in 'The Chit Chat Club' started by Magic Static, May 6, 2018.

  1. Magic Static

    Magic Static Topic Starter FTA Geek
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    I was doing some shopping for a monitor on eBay and found the one I wanted. When I hit the "Buy It Now" button it pops up and adds 7% sales tax. WTF?? We don't have sales tax in Montana and I have never paid a tax on anything I bought online. Where did they think the sales tax they want from me is going? Not going to be good if I have to pay a tax to nothing now.
     
  2. Juan

    Juan Supporting Founder
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    What state was the seller in?

    Sent from my SM-G950U using the SatelliteGuys app!
     
  3. Magic Static

    Magic Static Topic Starter FTA Geek
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    "several locations in the US"
     
  4. KE4EST

    KE4EST SatelliteGuys Is My Second Home
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    NC does have sells tax and as a full on business I have to charge sales tax, BUT only if the buyer is also in NC. If they are in any other state, no tax.
    I can only charge tax for the states that I have a physical location in(and if that state has a sales tax). For me that is just NC.
     
  5. harshness

    harshness SatelliteGuys Master

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    A state of confusion.

    Sales tax is truly a mess and if South Dakota is victorious in their US Supreme Court case (South Dakota vs Wayfair), it will get orders of magnitude more messy. You can't legally collect sales tax for a state that doesn't have a sales or use tax.

    It seems likely that the seller didn't have the full statement about only collecting sales tax in their own state or states with which they have "nexus".

    Nexus means you do enough business with customers in a particular state that has a tax that it is worth it to that state to track you down and bludgeon you with tax collection.
     
  6. harshness

    harshness SatelliteGuys Master

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    Keep an eye on this as it may change. My company doesn't have a physical location in Hawaii, but we sell enough stuff in Hawaii that we are expected to charge them the Hawaiian "use tax". The really strange part with Hawaii is that if you ship the goods prepaid, you also have to charge tax on the shipping costs.

    I don't know what the numbers are to reach nexus, but they exist and if you get big enough, you may have to deal with it.
     
  7. KE4EST

    KE4EST SatelliteGuys Is My Second Home
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    I know, I get stuff saying it may change. So far I have not had to, but you are correct this may change. Currently we do not charge tax on shipping, but that is always mentioned from time to time here also. So far, though it has not happened.
     
  8. harshness

    harshness SatelliteGuys Master

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    We call these "drop-ship whores". They're selling stuff shipped directly from distributors and never see or touch what they are selling. They transmit the information to the distributor necessary to print a label and that's the bulk of their involvement in the sale.
     
  9. harshness

    harshness SatelliteGuys Master

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    I follow the observations of Avalara as they're up on things like this and I was surprised to learn what they had to say:

    Shipping and Sales Tax Explained

    The big takeaway is that if its a nexus sale that you as the seller pay to ship the product, you are required to collect tax on shipping and handling costs in more than half of the states that have sales or use taxes.
     
  10. Magic Static

    Magic Static Topic Starter FTA Geek
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    Getting to be just like the medical field, you don't know how much you pay for stuff until after you bought it. :(
     
  11. harshness

    harshness SatelliteGuys Master

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    The medical field has the added complication of having to wait until the insurance company declares what they will pay.
     
  12. Magic Static

    Magic Static Topic Starter FTA Geek
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    Well eBay isn't fond of the tax collection program and has a petition against it. If anyone cares to sign it: Tax Petition
     
  13. harshness

    harshness SatelliteGuys Master

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    They're not fond of it as it will likely gut their business. I'm betting they'll start getting listings that are not available in some jurisdictions. Sales and use taxes are difficult enough as it is without having to calculate taxes down to the street address level (as is the reality in many states). If eBay gets into the middle of this and collects the tax, that's a big responsibility to take on.

    What if the buyer is exempt?

    How do they quote in the taxes on shipping and handling in the umpteen states that require it?

    For the drop-ship whores, how do you figure the taxes since neither the source nor the destination are known until the sale is completed?

    While I acknowledge that something needs to be done to try to put the storefronts on a competitive footing, I can't imagine how this is all going to work.
     
  14. stardust3

    stardust3 SatelliteGuys Master
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    Ebay sent me this email earlier today.


    Dear xxxxxx,

    eBay supports tax policy that is fair to entrepreneurs, artisans, and small businesses, which are vital to the American economy, and we oppose efforts to impose taxes that would harm these businesses. Millions of people across the country sell on the eBay marketplace, and there has never been a more critical time to stand against new and unfair Internet taxes.

    The U.S. Supreme Court will make a decision in the coming weeks that could give states the right to tax every small business on the Internet.

    The issue is just as urgent on Capitol Hill, as states, shopping centers, and large retailers lobby hard to increase taxes on small businesses and their online customers. When the Supreme Court makes its decision, it will bring together the various threads on the issue of Internet sales tax.

    Our leaders in Washington, D.C., and in state capitals across America need to know how you feel about these new and harmful Internet tax burdens. Please digitally sign this petition to show political leaders that you stand with us against these new taxes. It should take less than three minutes. We'll deliver your signatures to President Trump, key members of Congress, and select state governors.

    Rest assured that eBay will continue to fight this battle on behalf of all of our valued customers. Thank you for taking a stand for millions of small businesses across the America.

    Sincerely,

    Scott Cutler
    SVP, Americas Marketplace
    eBay


    Petition link...
    Support Fair Tax Policy For US Sellers & Buyers
     
  15. KE4EST

    KE4EST SatelliteGuys Is My Second Home
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    Yep, got the same email here.
     
  16. Derwin0

    Derwin0 Quando Omni Flunkus Moritati
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    A lot of companies that sell on the internet have moved to collecting sales taxes for States. Unfortunately it's something we'll have to learn to live with. The Internet commerce business is now considered mater, so Congress has no interest in giving it an advantage over brick & motor businesses.

    As for them charging a Montana resident sales tax, no matter which way the Supreme Court (or Congress) goes, an order to Montana shouldn't have sales tax (since the State doesn't have one).

    Did you have the shipping address listed correctly? Perhaps ebay's table for Montana is incorrect?
     
  17. Derwin0

    Derwin0 Quando Omni Flunkus Moritati
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    Not sure how ebay handles it, but my church's amazon account is registered as exempt, so they don't get charged.

    Amazon.com Help: Tax Exemption
     
  18. Magic Static

    Magic Static Topic Starter FTA Geek
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    I'm sure they have the correct addy. I made several purchases recently. Obviously an over site on somebody's part. But there was an upside to the situation. Gave me more time to consider the purchase I wanted to make and I decided against it.
     
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  19. harshness

    harshness SatelliteGuys Master

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    Exemption certificates are a pain. They expire at different times and can be painful to acquire if you're a for-profit business. Even then, they don't necessarily apply if you're not reselling what you bought and charging tax on it.
     

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