Something new on eBay? Tax on coins but only for the shipping portion
U1chicago
Posts: 6,245 ✭✭✭✭✭
Has anyone else noticed this? A few years back eBay erroneously charged tax in the coin category in states (like Illinois) that did not tax coins. After a few months that was fixed. Today I saw something new after buying a coin: eBay is now applying tax to the shipping portion of the sale (see screenshot below with the Illinois 10.25% rate applied to the $3.99 shipping portion). This coin was listed in the coins category and did not have a second category. Anyone see an announcement from eBay saying this will happen or is it some sort of glitch? If this is the new norm, it seems like sellers will be better off having free shipping and just adding the costs into the price (we already have people that complain about shipping charges, even when not warranted, so it seems like there will be more incentive to have "free" shipping).
Comments
Yes, I've noticed this. Incredibly annoying.
"It's like God, Family, Country, except Sticker, Plastic, Coin."
That seems in line with Illinois tax law
https://www2.illinois.gov/rev/questionsandanswers/Pages/144.aspx
Makes sense. I'd imagine many states that don't charge sales tax on coins do on shipping. No one should be surprised if it takes eBay a long time figuring out what it must collect tax on from which jurisdictions. Also, if I were to list a gold eagle in the Women's Gloves category would purchasers pay sales tax based on coin rates, precious metal rates, or accessory (clothing) rates? Is it any wonder why eBay wanted no part of this?
Yes. Just spent $10 and was only charged.08 for tax’s🤔🙀🦫
🎶 shout shout, let it all out 🎶
Same is true in New York.
The tax rate for Illinois on eBay is confusing to me too. At first it was 6.25% then it magically turned into 10% now it’s 10.25%!?! I was charged 10% on my purchase just last week!
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Localities in many cases have their own sales tax which gets added to the state sales tax.
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"Paper money eventually returns to its intrinsic value---zero."----Voltaire
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