Ebay sales tax question for our Taxachusetts members (or anyone else who may know)...

Outhaul

Taxachusetts does not charge sales tax on collector coins priced over $1k. Does ebay know this? Will they still charge the sales tax and force me to argue with them to get it back? Or will I just be SOL?

Thanks

Bob

Coinstartled

I would hold back a bit and let someone else take the first seat at the Ebay sales tax bris.

Ebay will get the state by state requirements figured out eventually, but let the other guy fight with them first.

U1chicago

Add some buy it now coin listing to your cart over $1k and go to the checkout screen. There you will see either an estimated tax (if it’s not working correctly) or no tax (if all is working).

Outhaul

@U1chicago said:
Add some buy it now coin listing to your cart over $1k and go to the checkout screen. There you will see either an estimated tax (if it’s not working correctly) or no tax (if all is working).

So, I went to the coin in question, added it to my cart, and it showed no sales tax nor a tax estimate. Can I safely assume that sales tax will not be added when I go to check out?

Thanks

Bob

Outhaul

Okay, update. I added a lesser coin to my cart and it did show sales tax. So, I guess there won't be sales tax added if over $1k.

Coinstartled

This sort of screws up the auction option on Ebay. If you bid and win a coin at $999 you get hit with say $80 in tax. If it makes it to $1001, you are ok.

If the state figures out that you earned 8% Ebay bucks on a $1000 coin, does that imply tax fraud if it causes the coin to net out at under $1000?

Should the state adjust the threshold $1000 upward in consideration of inflation, or downward because coins have mostly fallen in value?

Outhaul

@Coinstartled : The state will adjust in the direction that will ensure you pay taxes. Never will they adjust to save you money. At least not here in the people's republic of Taxachusetts.

Outhaul

By the way, I did make the purchase and there was no sales tax added because it was over $1k. That tells me the system is working.

U1chicago

@Outhaul said:
By the way, I did make the purchase and there was no sales tax added because it was over $1k. That tells me the system is working.

Glad it worked out!

1630Boston

Electricity

Yes, always try and get an invoice from a seller over 1K on your coins if you live in Mass, needs to be one 1 invoice though.

BillJones

When I was dealer, here was no sales tax if the entire invoice came to $1,000. That met that you could buy 20, $50 coins on one invoice and be exempt.

eBay has a problem. If you buy two coins from the same dealer than come to over $1,000, but they were in separate auctions, you will probably get nicked.

MasonG

@BillJones said:
eBay has a problem. If you buy two coins from the same dealer than come to over $1,000, but they were in separate auctions, you will probably get nicked.

Sellers can combine multiple purchases into one invoice. If this issue is a concern for buyers, perhaps they might consider asking the seller for an invoice first, instead of paying for each item individually.

segoja

In December I lost a $15,000 sale thru e-bay in Mass as the system wanted to charge sales tax. I have a high level contact at e-bay and they said they would refund the tax, but the guy wouldn't buy it. Cost us both $$$

Electricity

Was it a bullion related?

JBK

Next challenge is to get sellers to list bullion in collector coin categories.

SaorAlba

Taxachusetts - sounds like a good idea for a Dan Carr quarter parody.

djm

@Outhaul said:
@Coinstartled : The state will adjust in the direction that will ensure you pay taxes. Never will they adjust to save you money. At least not here in the people's republic of Taxachusetts.

Not True! They removed the sales tax from tobacco products as it was basically a tax on a tax.

Outhaul

@djm said:

@Outhaul said:
@Coinstartled : The state will adjust in the direction that will ensure you pay taxes. Never will they adjust to save you money. At least not here in the people's republic of Taxachusetts.

Not True! They removed the sales tax from tobacco products as it was basically a tax on a tax.

I say nay-nay. From the MA DOR website:

The Massachusetts excise tax on cigarettes is $3.51 per pack of 20 cigarettes. If a pack contains more than 20 cigarettes, the excise tax increases.

Cigars and smoking tobacco are subject to a state excise tax of 40% of the wholesale price.

Smokeless tobacco is subject to a 210% state excise of the wholesale price.

Payments of cigarette and tobacco excise tax are made by vendors, not by consumers. However the cost of the excise will be included in the retail price.

So, the vendor pays the tax to the state and you pay it back to the vendor.

1630Boston

You are correct @Outhaul
And the vendor pre pays the tax upon their purchase, not when they sell it to the consumer.

djm

@1630Boston said:
You are correct @Outhaul
And the vendor pre pays the tax upon their purchase, not when they sell it to the consumer.

Not correct there is no sales tax it was removed. The excise or "tobacco tax" has always been there. That was the reason the sales tax was removed it was a state tax on a state tax.

1630Boston

@1630Boston said:
You are correct @Outhaul
And the vendor pre pays [or just pays] the excise tax [tobacco tax] upon ****their**** purchase, not when they sell it to the consumer.

I stand corrected, thanks @djm
We always called it a "sales" tax