Home› PSA Set Registry Forum

Ebay and sales tax

jay0791jay0791 Posts: 3,528 ✭✭✭✭
in PSA Set Registry Forum
Just curious what others think.
I went o check out and pay for an item and noticed that state sales tax was added. I am a resident of the same state.
However, nowhere in the auction listing does he mention he collects sales tax.

ebay bids are often figured at total costs: item + shipping and anything else mentioned.

I know legally he may be required to do so......but I would be 99+% of other sellers do not. I know I don't.

would u
just pay it?
pay it and give not nice feedback to alert other potential buyers?
ask to have it removed?
Collecting PSA... FB,BK,HK,and BB HOF RC sets
1948-76 Topps FB Sets
FB & BB HOF Player sets
1948-1993 NY Yankee Team Sets

Comments

  • cpamikecpamike Posts: 5,565 ✭✭✭
    He should have put in his listing that he collects sales tax from state X as that may have effected how much you bid for that item. If you are unhappy with the final price based on the additional sales tax, I would contact him and tell him you would like to cancel the transaction as the sales tax was not disclosed in the auction. If you really want me item, I would send him a message stating that he needs to list the collection of sales tax in his auction as it could influence bidders from that state. I know I live in New York and if the seller charges sales tax I keep that in mind when bidding.

    If he blows you off, then I would indicate in the feedback that the seller did not disclose the collection of sales tax for state X in his auction. If he replies in the feedback that he is required to collect sales tax, you should state that not all sellers are required to collect sales tax and it is not the buyers responsibility to know who collects for what state.

    I hope this helps.
    "The woods are lovely, dark and deep.
    But I have promises to keep,
    And miles to go before I sleep,
    And miles to go before I sleep."

    "Life is what happens to you while you're busy making other plans."

    Collecting:
    Any unopened Baseball cello and rack packs and boxes from the 1970's and early 1980s.
  • cadets68cadets68 Posts: 596 ✭✭✭


    << <i> it is not the buyers responsibility to know who collects for what state.

    >>



    You are a CPA so you must know that this is incorrect. The state can come after the buyer for failure to pay sales/use tax. The state can choose to go after the buyer or seller.

    It has happened to me. I even had to pay on a book I bought from Amazon.com.

    While it is rare for the state to collect from an individual it can happen.

    I would just pay the tax and be done with it. It cost me a heck of alot to go through the audit.

    Good Luck

    Shawn
    After those four National League games, Gorman Thomas was never the same, and neither were the Brewers, and come to think of it neither was I.

    Josh Wilker - Cardboard Gods
  • cpamikecpamike Posts: 5,565 ✭✭✭


    << <i>You are a CPA so you must know that this is incorrect. The state can come after the buyer for failure to pay sales/use tax. The state can choose to go after the buyer or seller. >>



    Not necessarily incorrect Shawn. Let me begin by stating that many CPA's specialize in different fields and I know many who don't do their own tax return. However, even though I deal with corporate income tax I have a background in individual income tax as well.

    You are correct in stating that a state can come after the buyer for failure to pay sales/use tax, but I was only responding to the requirement of the seller in this case. A seller may be in a state that does not charge sales tax or only requires sellers to remit sales tax based on a minimum amount collect in said state. As you probably know, all states have their own sales/use tax rules as well as individual/corporate income tax rules. That's what helps me keep a job. image

    You are also correct in that it is rare for a state to collect sales tax from an individual buyer. Usually they did something else to get audited and then they pile on so to speak. The best is when the state goes after the buyer and the seller and gets double the sales tax.

    Really what I was trying to state is that the collection of sales tax should be communicated up front as it may influence how much I bid on an item. When I file my individual state tax return (in most states anyway), I would remit any sales tax due with my return which could be offset by my refund. So I, in essence, have given the state a cash free loan if I pay the sales tax upfront instead of with my return. If a seller is required to collect sales tax on an item, by all means do, but don't surprise me with it if I'm not ready to pay it right now.

    You should deal with corporate tax returns, now that's real fun. image
    "The woods are lovely, dark and deep.
    But I have promises to keep,
    And miles to go before I sleep,
    And miles to go before I sleep."

    "Life is what happens to you while you're busy making other plans."

    Collecting:
    Any unopened Baseball cello and rack packs and boxes from the 1970's and early 1980s.
  • BrickBrick Posts: 4,981 ✭✭✭✭✭
    Even though I have been a CEO for 22 years for a local corporation I am no expert in tax law. I pay others for their expertise in that field. (remember the saying "Anyone who acts as his own lawyer in court has a fool for a client.") I do believe it is unconstitutional to charge sales tax across state lines. Something about no tariffs being allowed in interstate commerce. Sales tax can only be collected if the buyer and seller are in the same state. I have passed on several auctions where the seller is in Ohio and I would have to pay an additional 6.75%. Several states are considering charging a "use tax" which is the equivilent of a sales tax. I don't believe this is constitutional as it would be a de facto sales tax. States are strapped for funds so I would not be suprised to see it happen. If they make it retroactive they could nearly balance their budgets.
    Collecting 1960 Topps Baseball in PSA 8
    http://www.unisquare.com/store/brick/

    Ralph

  • cpamikecpamike Posts: 5,565 ✭✭✭
    Ralph, your tax people would be proud of you.

    You are absolutely correct about sales tax in a traditional sense, brick & mortar situations. Now with the internet, some states are trying to be more aggressive in getting sellers to charge and remit sales tax. I am not a sales tax expert either, but I know there has been litigation in this area recently as the internet was not considered when a lot of the sales tax laws were written. I believe there was a large case involving Amazon, but I don't know the outcome or if it is still making its way through the courts.

    Enough with tax talk, its back to the boards for me.
    "The woods are lovely, dark and deep.
    But I have promises to keep,
    And miles to go before I sleep,
    And miles to go before I sleep."

    "Life is what happens to you while you're busy making other plans."

    Collecting:
    Any unopened Baseball cello and rack packs and boxes from the 1970's and early 1980s.
  • BrickBrick Posts: 4,981 ✭✭✭✭✭
    You are absolutely correct about sales tax in a traditional sense, brick & mortar situations.

    If I was wrong about brick and mortar situations I would truly be embarassed. image
    Collecting 1960 Topps Baseball in PSA 8
    http://www.unisquare.com/store/brick/

    Ralph

  • cadets68cadets68 Posts: 596 ✭✭✭
    Wisconsin has a use tax. My Amazon purchase fell under this.

    Shawn
    After those four National League games, Gorman Thomas was never the same, and neither were the Brewers, and come to think of it neither was I.

    Josh Wilker - Cardboard Gods
  • cpamikecpamike Posts: 5,565 ✭✭✭


    << <i>You are absolutely correct about sales tax in a traditional sense, brick & mortar situations.

    If I was wrong about brick and mortar situations I would truly be embarassed. image >>



    Wow, I didn't even try to do that. image

    Unfortunately for you Shawn, from my audit experience Wisconsin is one of the more aggressive states so it does not surprise me that they got a big online retailer like Amazon to remit use tax. When they first started, Amazon was only collecting sales/use tax in those states that they had nexus in (an actual physical presence).
    "The woods are lovely, dark and deep.
    But I have promises to keep,
    And miles to go before I sleep,
    And miles to go before I sleep."

    "Life is what happens to you while you're busy making other plans."

    Collecting:
    Any unopened Baseball cello and rack packs and boxes from the 1970's and early 1980s.
  • WinPitcherWinPitcher Posts: 27,726 ✭✭✭
    According to ebay:


    You're required to include the following details in your listing:

    *

    Forms of payment you accept
    *

    Return policy
    *

    Restocking fee, if applicable
    *

    Shipping and handling method, costs, and other information
    *

    Taxes and any applicable government imposed fees (such as electronic waste disposal fees)
    *

    Terms of the transaction
    Good for you.
  • jay0791jay0791 Posts: 3,528 ✭✭✭✭
    Thank you for the replies.
    My only grip was non disclosing of all fees so thank you winpitcher.
    In this state (the highest taxed and fees state) we aready pay tax on many online transactions.

    I merely politely asked seller to drop fees and he did w/o question. So he will still earn 5 stars if cards arrive.

    On out state tax form we also have a use tax line.
    Collecting PSA... FB,BK,HK,and BB HOF RC sets
    1948-76 Topps FB Sets
    FB & BB HOF Player sets
    1948-1993 NY Yankee Team Sets
  • cpamikecpamike Posts: 5,565 ✭✭✭
    Steve, way to cut to the chase. image

    Us tax guys can't help but get into the details. image
    "The woods are lovely, dark and deep.
    But I have promises to keep,
    And miles to go before I sleep,
    And miles to go before I sleep."

    "Life is what happens to you while you're busy making other plans."

    Collecting:
    Any unopened Baseball cello and rack packs and boxes from the 1970's and early 1980s.
  • MCMLVToppsMCMLVTopps Posts: 4,839 ✭✭✭✭✭
    While we're on the topic...didn't Dick Durbin (IL) recently make some comments about a tax on all eBay transactions? Not sure how much traction this will get, or even where the legislation might be at this point, but I think his comments were made within the last few months or so.

    Not sure how the actual collections would happen, seems to me it would be burdensome on the seller among other things. Comments?

    Good thread BTW on the topic...I think Winpitcher nailed the issue with posting the eBay requirements. Kinda like when a seller tries to hide his qualifier card by not mentioning it anywhere. I say if it ain't in the description, the egg is on the seller. In the example from the OP, the seller failed to mention sales tax will be added for those sales within the seller's state. Therefore, I think Jay0791 had a legitimate beef.

  • blacklabblacklab Posts: 187 ✭✭
    Click on the listing details. If tax is to be included, there is a spot for its inclusion in the listing.
  • cardbendercardbender Posts: 1,831 ✭✭
    Related to the tax question, ebay will soon be taking a cut of the shipping charges as a final value fee.

    If you have to pay taxes for an instate purchase on ebay, does ebay also take a cut of the
    taxes charged on the item, either in final value fee's or paypal fee's? I hope my question makes
    sense. Just wondering about this....
Sign In or Register to comment.