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State sales tax -

bbne1bbne1 Posts: 137
in Trading Cards & Memorabilia Forum
Do you avoid buying from eBay sellers in your state because of the state sales tax? I seem to pass on some nice cards because of it. CA sales tax is almost 8%, so a $250 card just went up $20 for me if I buy from a California dealer. Wouldn't it make more sense to register your business in Delaware for example?

Comments

  • Alfonz24Alfonz24 Posts: 3,113 ✭✭✭✭✭
    Sales tax applies to where the card is sold and shipped from.
    #LetsGoSwitzerlandThe Man Who Does Not Read Has No Advantage Over the Man Who Cannot Read. The biggest obstacle to progress is a habit of “buying what we want and begging for what we need.”You get the Freedom you fight for and get the Oppression you deserve.
  • lawnmowermanlawnmowerman Posts: 19,477 ✭✭✭✭
    If its a card I really want than I will pay the extra for the in-state tax.

    1994 Pro Line Live

    TheDallasCowboyBackfieldProject

  • TheVonTheVon Posts: 2,725 ✭
    I also live in California and there is one dealer, in particular, that charges sales tax causing me to struggle with this issue. They have a huge inventory so I find that there's always a card I want from them. I usually decide to decrease my bid accordingly. What makes it worse is that they don't take Paypal and I always feel cranky when I have to break out the checkbook and try to remember where I put the stamps. All that's forgotten when the card I wanted so badly comes in the mail though.
  • GriffinsGriffins Posts: 6,076 ✭✭✭
    It's an unfortunate reality, and one that will eventually lead to a National sales tax, like England and Canada.
    I figure it into what I"m bidding. I won some lots in SCP the other nite and the 20% buyers penalty plus 8.25% sales tax will hurt, but I counted that in and bid accordingly.
    Although I would never do it, I have heard of some people that will have friends in other states bid for them. And one auctioneer in CA told me they say the item is shipped out of state to avoid it.

    Always looking for Topps Salesman Samples, pre '51 unopened packs, E90-2, E91a, N690 Kalamazoo Bats, and T204 Square Frame Ramly's

  • Alfonz24Alfonz24 Posts: 3,113 ✭✭✭✭✭


    << <i>Although I would never do it, I have heard of some people that will have friends in other states bid for them. >>



    I had a lady a work who's son was getting married last year. They live in Missouri and bought the wedding ring in MO, but at the time was going to college in Omaha and had the ring shipped to Omaha from the dealer. It was a $10 ring and they saved $650 on Missouri sales tax.

    But I know most states now have a line on the state tax return to declare use tax on items shipped from out of state where the seller does not collect sales tax. This is how Dennie Kowslowski (Tyco kingpin) first got nailed by NY and started his demise. He had expensive paintings ($10M worth) shipped to New Hampshire (no sales tax I believe) corporate HQ and then he took these personal paintings to his NY apartment.
    #LetsGoSwitzerlandThe Man Who Does Not Read Has No Advantage Over the Man Who Cannot Read. The biggest obstacle to progress is a habit of “buying what we want and begging for what we need.”You get the Freedom you fight for and get the Oppression you deserve.
  • 80sJunkie80sJunkie Posts: 1,314
    yes it does suck theres a box i want right now thats at 900 but then i would have add 72 in california taxes.
  • GriffinsGriffins Posts: 6,076 ✭✭✭
    In CA it's called Sales and Use tax. If I buy an item for my business out of state (cameras, typically) and the store doesn't charge sales tax because it's shipping to CA and they don't have a store there they don't charge me sales tax. But I am required to report it on my return every quarter and remit the tax. I have a few friends that have had insurance payments for lost cameras and then got audited by the sales tax board just for this. The SBofE (sales tax) monitors insurance payouts.

    Always looking for Topps Salesman Samples, pre '51 unopened packs, E90-2, E91a, N690 Kalamazoo Bats, and T204 Square Frame Ramly's

  • scottsusorscottsusor Posts: 1,210
    You're going to see more and more sellers start charging state sales tax. I didn't charge it -- then about a month ago I got a personal visit from an officer of the Texas State Comptroller's Office. He told me that they were just beginning to monitor internet sales -- eBay in particular -- and I was required to start charging 8.25% (the rate for Houston Texas, which includes state, local and metro). The money has to be paid in to the State of Texas each January 20. He also said that its not just Texas -- all states are creating departments which will target internet sales in their state and require sellers to charge and pay state sales tax on eBay and other internet sales. Of course, it only applies when the buyer is also in the same state, in my case Texas. I asked how he got my address, and he said that eBay must give it to them when they inquire -- that is a bit scary -- legal I guess, but scary. I also asked him about eBay sellers who don't list their location -- he said that didn't matter either -- they were able to track down the state of any seller -- also scary.
  • GriffinsGriffins Posts: 6,076 ✭✭✭
    Scott- I"m sure as your volume goes up they will change you to quarterly. I started out yearly (on my business, not cards) and then got moved to quarterly. Now I"m on monthly pre pays, due to volume, which really sucks. I have to pay the state 90% of the tax I've billed the previous month, even though I don't get paid for those invoices for 60-90 days. I love advancing money to the government image

    Always looking for Topps Salesman Samples, pre '51 unopened packs, E90-2, E91a, N690 Kalamazoo Bats, and T204 Square Frame Ramly's

  • scottsusorscottsusor Posts: 1,210
    Anthony -- My volume in Texas is actually very small, at least relative to my out-of-state sales -- I don't even think I'll come close to what I would have to make in order to go quarterly. Income tax (federal only, we don't have income tax in Texas) is another story -- we've been on quarterly payments for three years.
  • MooseDogMooseDog Posts: 1,946 ✭✭✭
    I run my eBay business as legitimate, have a California resale number, and pay my state stales taxes. While technically, you are supposed to collect tax on the sale within CA, I found that my few CA sales dropped to almost nothing when I charged extra. As long as a tax is paid on the sale, the BOE doesn't care.

    I sell lower priced items and my CA sales are nothing in comparison to out of state.

    So in essense I give buyers in CA an 8.25% discount they don't know about and file my quarterly sales taxes based on actual CA sales.

  • 262Runner262Runner Posts: 606 ✭✭✭
    I live in California. Most of the time if a seller is charging CA State sales tax I will Pass on the auction. On a few occasions when the card has been hard to find, I will place the bid, however I do factor in that 8% when bidding.

    The other thing I have noticed is that many of the "Smaller" dealers on ebay that do charge CA State sales tax also tend to overcharge on shipping.... leads me to believe that they are looking for that extra 8% bump.

    262

    Collecting all cards - Gus Zernial
    Post Cereal both raw and PSA Graded (1961-1963)

  • larryallen73larryallen73 Posts: 6,067 ✭✭✭
    I run my eBay business as legitimate, have a California resale number, and pay my state stales taxes. While technically, you are supposed to collect tax on the sale within CA, I found that my few CA sales dropped to almost nothing when I charged extra. As long as a tax is paid on the sale, the BOE doesn't care.

    I applaud you. One for paying tax like you are supposed to (as most sellers do not) and two for not adding it on to the sale like a few big California sellers do. It's just easier all the way around. Good job!
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