Trying to make sense of CA Coin Sales Tax for eBay ... Help?

C0inCollect0r

Hi folks,

I am considering a move to San Diego and I am trying to figure out what exactly I would need to charge California buyers for Sales tax if I end up selling on ebay after moving to San Diego. The state sales tax rate is 7.5% but the San Diego rate is 8%, and it also varies for different cities in California. I've seen some sellers on ebay charging 9%.

Can anyone from California explain what rate I'm supposed to charge California buyers?

bronzemat

Usually you charge whatever city YOUR in. I live in L.A. and we are 9% but i've bought coins and such from northern Ca. and San Diego its been 8% - 8.5%.

Goldbully

You can keep your California Sales Tax......ah yes.....liberalism.

Zoins

<< <i>You can keep your California Sales Tax......ah yes.....liberalism. >>



Given that there are only 5 states without sales tax, the US must be a bastion of liberalism

Here are the states without sales tax, more of which are blue (liberal) states (3 vs 2).

mbogoman

<< <i>Can anyone from California explain what rate I'm supposed to charge California buyers? >>



Yes, 8% is the current correct rate for San Diego. I live in San Diego County, too. Rates across the state vary depending on local assessments. You only need be concerned with the jurisdiction you live in , or rather, make your sales from. You'll need to get a seller's permit and register with the State Board of Equalization. You'll probably need a business license, too, depending on what City you live in. I live in Escondido and it requires a license, even for purely online businesses, like selling on Ebay. The SBOE sends out a letter two or three times a year detailing what the rates are across the state. They also send you friendly reminders to pay whatever tax your business owes at the beginning of the year.

Edit to add: If the total invoice is $1500 or greater, there is no sales tax. If you've got Ebay setup to assess sales taxes on your sales to CA residents, you'll have to remember this and manually uncheck the "Sales Tax" box in your listing. It's not so much of a problem with a BIN or Best Offer, but can be tricky with auctions as you don't know beforehand what the sales price will be. Fortunately you can send out a corrected invoice after the fact.

cucamongacoin

What mbogoman said. I believe the county offices are the ones to contact. One of the requirements (at least it was 20 years ago) was to run a local classified ad proclaiming the intent to establish a fictitious business name. Ebay has sales tax tables which will assess the appropriate tax for your location. However, the assessment of taxes is not a default option in turbolister, and you have to select it for every listing. The BOE requires payment of collected sales tax for the period July 1st through June 30th no later than the 31st of July each year, and is now done all online. Your sales to California residents will diminish significantly, in proportion to out of state sales.

AMRC

AMRC

As stated you would charge whatever is your local rate is. Contact the State Board of Equalization. However, it is almost moot, as everyone from California will avoid buying from you for this reason. I am guessing from my experience that about 1 in 50 transactions under $1,500 originate from this state because people want to avoid the sales tax.

bigjpst

You may want to research this on the boe website. There are some differences in the way sales tax is/should be applied if you are in a district with a higher rate than the state tax rate and you ship out of your district. eBay doesn't really make it easy, because if you charge too little you really can't go back and add more to the invoice without most buyers getting upset. So you have to set the tax calculator to charge your rate, and if the buyer is required to pay a lower rate, you can refund the overpayment, or submit it to the state with your refund.

19Lyds

<< <i>

<< <i>You can keep your California Sales Tax......ah yes.....liberalism. >>



Given that there are only 5 states without sales tax, the US must be a bastion of liberalism

Here are the states without sales tax, more of which are blue (liberal) states (3 vs 2).

>>

When did Vermont start charging Sales Tax? I lived there in 1979 but have not been back since then.

CoinJunkie

<< <i>When did Vermont start charging Sales Tax? I lived there in 1979 but have not been back since then. >>


From the Wikipedia entry on "Sales Tax":

Eleven more states enacted sales tax laws during the 1960s, with Vermont as the last in 1969.

Guess you owe that state some money...

TwoSides2aCoin

Change is good. Hope this helps.

C0inCollect0r

Thanks for the replies everyone - I appreciate it.

I had one other question - Given that some have said you essentially lose the vast majority of California buyers due to the tax, is the seller allowed to simply pay the tax out of his own pocket instead of charging the buyer? Neither option sounds particularly appealing but I would imagine it could be better for some sellers to simply pay the tax themselves than lose all CA business.

ctf_error_coins

Welcome to San Diego and yes it is 8%.

Yes you could pay the tax out of your pocket, but why?

Do car dealers do it?, do retails do it? It's really weird to me that people think that can skirt THE LAW and not pay tax on coins.

California IS the BEST state in the Union and San Diego is the Best City in The Best State , hands down, no debate ....

Plus get ready for some awesome fishing this year with the el nino creeping up.

BillJones

Florida has the same system. There is a state wide sales tax and then there (usually) is a local tax as well. The difference is there is no sales tax on sales of U.S. coins in Florida. That was also true of Connecticut when I was a dealer in New England.

As for the local surcharge, you charge the amount in YOUR area on mail orders within the state. If you are doing a show in an area away from your home, you charge the rate in that area. That provision left me having to do some extra bookkeeping, but I was able set something up on Excel that did it for me if I put the numbers in the right place.

crypto79

<< <i>

<< <i>You can keep your California Sales Tax......ah yes.....liberalism. >>



Given that there are only 5 states without sales tax, the US must be a bastion of liberalism

Here are the states without sales tax, more of which are blue (liberal) states (3 vs 2).

>>

illini420

In looking at the California Board of Equalization rules, it appears that if you live in a district of the state that has only the state tax rate, then it's pretty easy, you just collect 7.5% from all California buyers (unless the total transaction is over $1500, then it is exempt from sales taxes). If the buyer happens to live in a district with a higher rate, say 9.0%, you still only collect 7.5%, but they then owe the extra 1.5% as a use tax that they must pay in on their own.

However, it's not that simple if you live in one of the tax districts with an additional tax. So if your home district has the 9.0% tax rate, then you should be collecting that 9.0% rate to people who buy from you and who also live in your district. But if the California buyer lives outside of your district, then it appears that you should only be collecting the 7.5% state rate. If a buyer is from a different district than yours, but who lives in a district with their own district tax, you still only collect the 7.5% and then they pay the rest on their own as use tax. Since eBay doesn't account for the multiple rates in California, California sellers who live in a district with a higher rate either will have to make adjustments to buyers in their district or for all buyers outside of their district.

Edited to add that the above only applies to internet sales. If you actually have a brick and mortar stores or set up to do business in various districts in the state (even setting up at a coin show in that district), you then use the sales tax rate where you are doing the business.

Fortunately, I live in a district that only has the 7.5% rate so I just charge that rate to all California buyers regardless of where in the state they are. I sell to quite a few California buyers, some complain about having to pay the tax, most don't. If I get a complainer and I'm making a good profit on the coin anyways, I'll sometimes revise the invoice to a lower amount so that they get to pay what they wanted after tax.

TwoSides2aCoin

California is NOT the BEST state in the union. That's just a rumor that started in Disnenyland and Hollyword.

PTVETTER

there is NO sales tax on coins and bullion in PA.

A good reason to have shows in PA!

ctf_error_coins

<< <i>

<< <i> Swampass summers with crazy humidity can go away, though. >>



San Diego has Perfect Climate, google it if you doubt it ............

LindeDad

Some states make a exemption for coins and bullion.

bigjpst

<< <i>In looking at the California Board of Equalization rules, it appears that if you live in a district of the state that has only the state tax rate, then it's pretty easy, you just collect 7.5% from all California buyers (unless the total transaction is over $1500, then it is exempt from sales taxes). If the buyer happens to live in a district with a higher rate, say 9.0%, you still only collect 7.5%, but they then owe the extra 1.5% as a use tax that they must pay in on their own.

However, it's not that simple if you live in one of the tax districts with an additional tax. So if your home district has the 9.0% tax rate, then you should be collecting that 9.0% rate to people who buy from you and who also live in your district. But if the California buyer lives outside of your district, then it appears that you should only be collecting the 7.5% state rate. If a buyer is from a different district than yours, but who lives in a district with their own district tax, you still only collect the 7.5% and then they pay the rest on their own as use tax. Since eBay doesn't account for the multiple rates in California, California sellers who live in a district with a higher rate either will have to make adjustments to buyers in their district or for all buyers outside of their district.

Edited to add that the above only applies to internet sales. If you actually have a brick and mortar stores or set up to do business in various districts in the state (even setting up at a coin show in that district), you then use the sales tax rate where you are doing the business.

Fortunately, I live in a district that only has the 7.5% rate so I just charge that rate to all California buyers regardless of where in the state they are. I sell to quite a few California buyers, some complain about having to pay the tax, most don't. If I get a complainer and I'm making a good profit on the coin anyways, I'll sometimes revise the invoice to a lower amount so that they get to pay what they wanted after tax. >>



Because most believe what others posted before this, rarely do you find someone complaining about whether or not you are charging the correct amount of tax, but if you are collecting too much(your district rate to buyers outside a district) and don't refund the difference to them, you are required to still claim the collection of the extra tax and submit it on your sales tax return.

bigjpst

Also wanted to add that In California, you are responsible for paying the tax to the state, and it is your choice whether it not you pass that on to your customer. But, invoices are supposed to state that sales tax is included in the selling price, or if not an internet sale you are supposed to have it posted.

ctf_error_coins

<< <i>

<< <i>San Diego has Perfect Climate, google it if you doubt it ............ >>



Enjoy your wildfires!

Just kidding, if I could live anywhere in the US, it would probably be SD. >>



Thank you I do.

It is a shame people lose their house, get hurt and die from the fires.

But, the fires are an integral part of the very fragile ecosystem.

Wildflower blooms like this would be impossible without the fires ......

ctf_error_coins

<< <i>

<< <i>Thank you I do.

It is a shame people lose their house, get hurt and die from the fires.

But, the fires are an integral part of the very fragile ecosystem.

Wildflower blooms like this would be impossible without the fires ...... >>


Very true. At any rate, it's a tradeoff... a very small risk of losing your home/belongings/life versus living in one of the most beautiful areas in the world, climate-wise? A worthy tradeoff, imho.

Now if only the COL was more reasonable... >>



OMG, the trade off ... do you know anything about odds. How many houses in Ca vs how many burned in the fires, Ill take that bet ANYDAY.

I would not take the same bet for houses in Tornado Alley ......

ctf_error_coins

California Dreamin'

The Mamas and The Papas

ctf_error_coins

And of course ......

Hotel California