Question on shipping/sales tax

cuda440 · May 29, 2007 7:43PM

I won a card couple days ago and then find out thru the auction checkout that there is Ca sales tax. This was not mentioned at all in the auction during the time it was running. Not a huge deal(an extra $21) but it's sort of irritating because IMO the issue concerning sales tax should have been clearly indicated ahead of time NOT after the auction ends. agree/disagree?

sonoranmonsoon · May 29, 2007 10:59PM

The seller should have disclosed it.

packCollector · May 29, 2007 11:21PM

I list it in all my auctions and if it wasn't listed in something i was buying , i wouldn't pay. imo

handyman · May 29, 2007 11:22PM

if it wasnt in the auction you have no contract to pay it. His fault.

cuda440 · May 30, 2007 12:00AM

i tend to agree about not buying, but i still do want the card. i checked again and couldn't find sales tax listed anywhere. possibly an honest omission by mistake. i sent an email about it, haven't heard back. maybe something can be worked out whereby he waves the sales tax. would be an easy compromise for both rather than having to re-list it.
i wasn't aware about not being obligated to buy if it isn't disclosed...interesting.

handyman · May 30, 2007 12:19AM

Just tell him you want to see a tax certificate. It could be a scam.

cuda440 · May 30, 2007 12:50AM

he has a score of 890 w/100% feedback. doubt it's a scam. but may ask him about the sales tax certificate w/o trying to come off as insulting..

storm888 · May 30, 2007 1:07AM

CA wants their cut of internet transactions.

The seller is NOT required to state in his listing
that he is going to comply with the law.

bishop · May 30, 2007 2:44AM

If the buyer and seller both reside in California a sales tax probably applies. Seller is responisible by law to collect and remit. If you see a department store sale price in the paper it would not include sales tax, but it would still apply. Of course, at the point of purchase you could then decide not to buy, so it would be useful information to have in the listing before you bid, assuming as a California resident you were not already familiar with how the tax works. Some sellers, particularly those in California. often do give notice of the tax, but for a sale to someone in the other 49 states it might be irrelevant information. ......because we would be religiously paying any applicable use tax .

MooseDog · May 30, 2007 3:06AM

<< f the buyer and seller both reside in California a sales tax probably applies. >>

By law, any sale that takes place in California sales tax applies. Whether or not the seller mentions it in his listing if you and the seller are both in CA then sales tax applies on the sale. However, the SELLER is liable for the sales tax on any sales and is RESPONSIBLE FOR, but DOES NOT HAVE TO collect it. May retailers will have "We Pay The Sales Tax" sales on holiday weekend. They still have to pay the tax on their sales, but you as a buyer are getting an 8-8.75% discount by not having to pay it.

You have every right to request the Seller's Permit number of the seller. He can provide you the number and you can look up it's validity here. It will show if his status is valid and name and address:

CA Sales/Use Tax Permit Verification

yankeeno7 · May 30, 2007 4:46AM

Cuda lives in NY....I dont think he can be charged another state's sales tax????

cuda440 · May 30, 2007 11:00AM

<< 

<< f the buyer and seller both reside in California a sales tax probably applies. >>

By law, any sale that takes place in California sales tax applies. Whether or not the seller mentions it in his listing if you and the seller are both in CA then sales tax applies on the sale. However, the SELLER is liable for the sales tax on any sales and is RESPONSIBLE FOR, but DOES NOT HAVE TO collect it. May retailers will have "We Pay The Sales Tax" sales on holiday weekend. They still have to pay the tax on their sales, but you as a buyer are getting an 8-8.75% discount by not having to pay it.

You have every right to request the Seller's Permit number of the seller. He can provide you the number and you can look up it's validity here. It will show if his status is valid and name and address:

CA Sales/Use Tax Permit Verification >>

so, bottom line is the seller does NOT have to disclose the sales tax in his listing? seems deceptive to me. i still feel it should have been stated. wouldn't have been very difficult to mention that one line in the listing. i've bought other cards in Calif with w/o paying Ca sales tax. i assume those probably weren't business dealers.

btw, no email reply from the seller either when i asked/commented about this.

yankeeno7 - i'm in Calif

yankeeno7 · May 30, 2007 11:25AM

why did I think you were in NY? LOL...oh well....

MooseDog · May 30, 2007 3:38PM

<< so, bottom line is the seller does NOT have to disclose the sales tax in his listing? seems deceptive to me. i still feel it should have been stated. wouldn't have been very difficult to mention that one line in the listing. i've bought other cards in Calif with w/o paying Ca sales tax. i assume those probably weren't business dealers. yankeeno7 - i'm in Calif >>

You HAVE to have a State Resellers Permit to collect sales tax. If the seller does not have a Sellers Permit and he is collecting sales tax you can get him in BIG trouble with the Board of Equalization. If he doesn't come up with his Permit # then you might want to drop a note to the BOE with his Name and Address and maybe the eBay listing number. However you did say it came up in Checkout, so it must have been listing somewhere in the original listing, usually underneath the Shipping Info.

Agreed he should mention he charges sales tax in the listing, and you have a legitimate beef with the seller. Don't know if state law requires mentioning that tax is charged as it should be assumed, but I'm no legal expert.

I generally don't charge tax to CA customers so in essence they get an 8.25% California discount as I report sales legitimately for tax purposes. When I do charge sales tax I do state so specifically in my listings.

Here's a list of BOE Field Office Phone Numbers if you feel like wasting some time...

Griffins · May 30, 2007 4:17PM

If someone asked for my sellers permit number I'd tell them to go to hell- it's way too easy to use it to fill out a resale card at a flower mart or wholesale antique store with my number, and then next thing I know I'm getting audited- again.
It is the sellers responsibility to collect sales tax on any sale in CA to a CA buyer, but given the fact that most ebay sellers in CA don't bother complying with the law and take out licenses it could be safely assumed that if it doesn't say so in the auction terms it won't be added to the auction. If it was me I'd cancel the sale. I used to state it in my terms but felt it hurt my sales, so now I just back it out of the sale and report it on my quarterly filing.
If you are selling cards on ebay in CA and don't file a SBofE return, you're just asking for trouble. They make the IRS look like girl scouts selling cookies. And if the SBofE isn't looking at ebay sales already (which I think they probably are) they certainly will soon enough, and can go back at least 3 years. This would probably constitute fraud, which allows them a 5 year window.

cuda440 · May 30, 2007 6:12PM

<< 
However you did say it came up in Checkout, so it must have been listing somewhere in the original listing, usually underneath the Shipping Info.

Agreed he should mention he charges sales tax in the listing, and you have a legitimate beef with the seller. Don't know if state law requires mentioning that tax is charged as it should be assumed, but I'm no legal expert.

>>

i checked it again and it(shipping charges) positively does not show up. however, for some odd reason the page does not completely finish loading/displaying. same occurs with all of this seller's other auctions as well. however, i don't think this has anything to do with the matter.

i printed the page out and it states verbatum in the description after the card title:
"please check out my other auctions for more great deals. Winning bidder please add $3.50 for shipping, and .50 cents for each additional card won. Insurance is optional and will be at the exact rates the USPS charges."

that's all--nothing after that. Usually if there was sales tax it would have been clearly stated that in the same section, something like "Ca residents please add 8.25% sales tax."

the thing that sort of bothers me more the extra $21 sales tax is the fact that the seller has not responded to my question regarding this issue.

MooseDog · May 31, 2007 12:14AM

<< If someone asked for my sellers permit number I'd tell them to go to hell- >>

To check a Permit number's validity, you only need the number, you don't give the 4 letters at the beginning.

Question on shipping/sales tax

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