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Semi-OT but eBay related- sales tax on an eBay item from Illinois?

lordmarcovanlordmarcovan Posts: 45,020 ✭✭✭✭✭
I just bought a noncoin item (electric shaver) on eBay, from a seller in Illinois. (I'm in Georgia.)



During checkout, the shipping was free as promised, but I was charged sales tax.



I didn't quibble and paid it, but am wondering how long this has been going on, if it's an error, or just an Illinois thing?



If it is normal, this is the first time I've noticed it.



Also was wondering what bearing this might have on coin purchases, if any.

Collector since 1976. On the CU forums here since 2001.

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    LindeDadLindeDad Posts: 18,766 ✭✭✭✭✭
    The buyer is still responsible to pay all legally owed taxes on purchases.



    Thank goodness my state exempts coin sales.



    BTW I pay sale tax on all my Amazon general merchandise purchases because this state gouges us.



    image
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    TopographicOceansTopographicOceans Posts: 6,535 ✭✭✭✭
    If the seller has a physical presence in the State the merchandise is being delivered to, and that State has a sales tax, then the merchant has to pay it.
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    messydeskmessydesk Posts: 20,737 ✭✭✭✭✭
    If the merchant is collecting Georgia sales tax, he must remit it to Georgia. He should not be charging you Illinois tax if he's shipping to Georgia.
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    bigjpstbigjpst Posts: 3,226 ✭✭✭✭✭
    Originally posted by: messydesk
    If the merchant is collecting Georgia sales tax, he must remit it to Georgia. He should not be charging you Illinois tax if he's shipping to Georgia.

    This is correct as far as I know.
    He could be responsible for collecting Georgia tax if he had nexus in Georgia, but not Illinois tax on a sale out of state.
    There are a couple possibilities.
    the merchant may not understand the sales tax laws and may think that his internet sales are taxable like sales in state. Or it is possible they have not figured out ebays tax table.
    Either way, if the item is taxable in Georgia, you may be responsible for use tax. Fun
    image
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    VanHalenVanHalen Posts: 4,330 ✭✭✭✭✭
    There's a good chance the seller doesn't know what to do and is charging everyone sales tax to be safe. I had this happen once and after contacting the seller my "taxes" were refunded.
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    AUandAGAUandAG Posts: 25,030 ✭✭✭✭✭
    Ask the seller for his Georgia Sales Tax number. If he can't provide one ask ebay to intervene, as it is likely he's ripping folks off.
    Registry: CC lowballs (boblindstrom), bobinvegas1989@yahoo.com
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    lkeigwinlkeigwin Posts: 16,895 ✭✭✭✭✭
    The seller is mixed up, is my guess. I doubt he has a business presence in GA.



    I've made an important note not to buy electric razors from Illinois dealers.

    Lance.
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    bestdaybestday Posts: 4,271 ✭✭✭✭
    Originally posted by: lkeigwin
    The seller is mixed up, is my guess. I doubt he has a business presence in GA.

    I've made an important note not to buy electric razors from Illinois dealers.
    Lance.


    The seller is charging tax everyone . only Illinois residents should be charged a sales tax... ask for refund .. if not return the item.
    I will not purchase items from an in state seller and pay a sales tax .. enough of the corrupters . especially Illinois
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    bigjpstbigjpst Posts: 3,226 ✭✭✭✭✭
    Originally posted by: bestday
    Originally posted by: lkeigwin
    The seller is mixed up, is my guess. I doubt he has a business presence in GA.

    I've made an important note not to buy electric razors from Illinois dealers.
    Lance.


    I will not purchase items from an in state seller and pay a sales tax .. enough of the corrupters . especially Illinois


    Most states that have a sales tax, also have a "use tax". If you purchase an item from an out of state seller, you are responsible for reporting and paying the tax on that item to your state. The reason there is a big push for an internet sales tax is because most people don't report and pay the use tax that they are required to pay by state law.
    Some people don't know they are required to pay the use tax, but others just refuse. As soon as the states figure out how to split the tax revenue, you can expect an internet sales tax.
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    bestdaybestday Posts: 4,271 ✭✭✭✭
    Originally posted by: bigjpst
    Originally posted by: bestday
    Originally posted by: lkeigwin
    The seller is mixed up, is my guess. I doubt he has a business presence in GA.

    I've made an important note not to buy electric razors from Illinois dealers.
    Lance.


    I will not purchase items from an in state seller and pay a sales tax .. enough of the corrupters . especially Illinois


    Most states that have a sales tax, also have a "use tax". If you purchase an item from an out of state seller, you are responsible for reporting and paying the tax on that item to your state. The reason there is a big push for an internet sales tax is because most people don't report and pay the use tax that they are required to pay by state law.
    Some people don't know they are required to pay the use tax, but others just refuse. As soon as the states figure out how to split the tax revenue, you can expect an internet sales tax.



    image Use Tax ????? with all the waste ,fraud ,corruption you gonna keep feeding??
    Internet taxes are already here Most big retailers already charge


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    bigjpstbigjpst Posts: 3,226 ✭✭✭✭✭
    Hey don't shoot the messenger. image

    In California, there is a line on the last page of the state income tax return for you to report all of the tax you owe for all of the out of state purchases made. In Nevada because there isn't any income tax, residents are required to submit a form to the state reporting all sales tax owed for out of state purchases.

    I'm not saying I like it, I'm just saying it is the law in most states. But because it has proven to be near impossible to get people to voluntarily report what they owe, states are pushing for an internet sales tax that forces everyone to pay sales tax on all internet purchases.

    A complicated mess, but I'm sure given enough time the government will figure out how to get it out of us.
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    PerryHallPerryHall Posts: 47,510 ✭✭✭✭✭
    Originally posted by: lordmarcovan

    I just bought a noncoin item (electric shaver) on eBay, from a seller in Illinois. (I'm in Georgia.)



    During checkout, the shipping was free as promised, but I was charged sales tax.



    I didn't quibble and paid it, but am wondering how long this has been going on, if it's an error, or just an Illinois thing?



    If it is normal, this is the first time I've noticed it.



    Also was wondering what bearing this might have on coin purchases, if any.





    Did the listing warn you that sales tax would be charged or were you ambushed?



    Worry is the interest you pay on a debt you may not owe.
    "Paper money eventually returns to its intrinsic value---zero."----Voltaire
    "Everything you say should be true, but not everything true should be said."----Voltaire

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    garrynotgarrynot Posts: 1,874 ✭✭✭
    The only way he can charge Georgia sales tax is if he has a business presence in Georgia. Such as an office, warehouse, etc. He certainly shouldn't be charging Illinois sales tax. Just for information, Georgia does not collect sales tax on sales of coins or currency. I realize you bought a razor.
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    derrybderryb Posts: 38,555 ✭✭✭✭✭
    share with us the original listing

    "A car is a tool that takes you from one place to another. Everything beyond that is a payment for other people's perception of you."

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    lordmarcovanlordmarcovan Posts: 45,020 ✭✭✭✭✭
    Originally posted by: PerryHall



    Did the listing warn you that sales tax would be charged or were you ambushed?







    I didn't see anything, but didn't go back and look until after the fact. I read lots of gobbledygook but didn't see taxes mentioned at all.



    Seller's response to my message:









    Dear lordmarcovan



    Thank you for your e-mail date today. May I inform that our product have to charge Tax according to our partnered affiliate warehouse has operations in ( GA) Our products are stored throughout the country in order to facilitate the nationwide shipping .



    Thank you for your shopping with us and valuable supporting



    We are willing to a tax return you.







    Written like someone for whom English is a second language. (Hmm... are they really in Illinois?)



    I told them it was OK; that I had already paid but was just wondering.



    I'm still kind of wondering, but am far less concerned about a dollar and change on this transaction than Í would've been if Illinois had suddenly started taxing all out of state internet transactions.

    Collector since 1976. On the CU forums here since 2001.

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    lordmarcovanlordmarcovan Posts: 45,020 ✭✭✭✭✭
    Originally posted by: derryb

    share with us the original listing




    Here



    (Apologies to those who really had no interest in my cheap beard & mustache trimmer. But the old one broke and the 'stache is gettin' scraggly.) image



    Obviously my main concern was not so much this particular transaction but the overall implications of internet sales tax in general. I do about 95% of my coin shopping online.

    Collector since 1976. On the CU forums here since 2001.

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    ChangeInHistoryChangeInHistory Posts: 3,109 ✭✭✭✭✭
    Taxes, yes it's an Illinois thing!
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    mustangmanbobmustangmanbob Posts: 1,909 ✭✭✭✭✭
    This one does look legitimate, as it is clearly a business with multiple warehouse locations.



    You can always as for their tax ID number.



    Most of the ones were this has shown up, if you ask them, it is on by mistake, and they will refund it, or they are scamming an extra x % under the radar.
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    TopographicOceansTopographicOceans Posts: 6,535 ✭✭✭✭
    He's just a clueless 62 FB seller. He doesn't have warehouses all over the country.




    I would report him to eBay so they can educate him.




    There is no requirement by the State of Illinois to collect sales taxes on items shipped out of state




    I put one in my cart and it charged sales tax to California.


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    derrybderryb Posts: 38,555 ✭✭✭✭✭
    Originally posted by: TopographicOceans
    He's just a clueless 62 FB seller. He doesn't have warehouses all over the country.




    I would report him to eBay so they can educate him.




    There is no requirement by the State of Illinois to collect sales taxes on items shipped out of state




    I put one in my cart and it charged sales tax to California.



    Agree, a request for his tax ID # with your state or a refund of the taxes will most likely result in a refund of the taxes.





    When you click on his user name, note the word "Thailand" next to his ebay join date:
    Thailand?






    A lot of requests from ebayers around the country for his tax ID numbers might make him change his tune.

    "A car is a tool that takes you from one place to another. Everything beyond that is a payment for other people's perception of you."

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    ashelandasheland Posts: 24,420 ✭✭✭✭✭
    Interesting thread.
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    BochimanBochiman Posts: 25,790 ✭✭✭✭✭
    Not saying this particular seller is/isn't do it for this reason, but if you think about it, it's another "perfect" ebay scam.



    There have been all sorts of scams over the years, on ebay, and this one could be one of the safest scams (for the scammer) or all.....



    Set it up to take taxes. Majority of people may not be happy but likely won't complain over a few bucks and just think that you have to take taxes.



    Does ebay even touch the taxes part? I doubt it.



    So, if someone complains, just refund them. If they don't, you made a few extra bucks, each time.

    I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment

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    telephoto1telephoto1 Posts: 4,966 ✭✭✭✭✭
    I'm an IL resident and this guy shouldn't be charging you IL tax... however if he does indeed have a GA facility then he is required to charge GA sales tax.



    From Topo's link above (thanks, I was about to go hunt it down myself!), here are the salient portions:





    Sales — The following list contains some of the most common examples of transactions that are exempt from tax. (See the Illinois Administrative Code, Section 130.120 and Publication 104, Common Sales Tax Exemptions for a comprehensive list.)



    • Sales to state, local, and federal governments



    •Sales to not-for-profit organizations that are exclusively charitable, religious, or educational



    •Sales of newspapers and magazines



    •Sales to out-of-state buyers (Nonresidents may not claim the out-of-state buyer exemption if the motor vehicle or trailer will be titled in a state that does not give Illinois residents an out of state buyer exemption on purchases in that state of motor vehicles or trailers that will be titled in Illinois.)



    •Sales of tangible personal property to interstate carriers for hire used as rolling stock (e.g., semi-tractor trailers, railroad cars)



    •Sales of machinery and equipment that will be used primarily in ?manufacturing or assembling of tangible personal property for wholesale or retail sale or lease, and

    ?production agriculture



    • Qualified sales of building materials that will be incorporated into real estate as part of a project for which a Certificate of Eligibility for Sales Tax Exemption has been issued by the enterprise zone administrator



    •Qualifying purchases of tangible personal property used in a manufacturing or assembling process by businesses located in an enterprise zone and certified by the Department of Commerce and Economic Opportunity as qualifying to make these purchases because jobs will be created or retained



    •Sales of legal tender, medallions, and gold bullion issued by qualifying governments



    •Fuel used for international flights


    RIP Mom- 1932-2012
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    lordmarcovanlordmarcovan Posts: 45,020 ✭✭✭✭✭
    The item came today. Strangely, though an eBay purchase, it was packaged as an Amazon.com gift, with gift packing slip and all? image



    But it works fine and was an OK item for the money.



    Thus endeth the OT saga of my mustache trimmer.



    Continue on with the tax talk if you like, though, since that was the original point of the question in the OP.

    Collector since 1976. On the CU forums here since 2001.

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    jmski52jmski52 Posts: 23,956 ✭✭✭✭✭
    My accountant has a 1040 Tax Form that reads as follows:



    "How much did you make last year?"



    "Send it in."
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
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    rickoricko Posts: 98,724 ✭✭✭✭✭
    From the response of the seller, and the fact that you received it through Amazon, I would

    say that the tax was a ripoff.... he is using Amazon as his distributor. I know some people that

    do this and the service expedites their business. Cheers, RickO
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    TwoSides2aCoinTwoSides2aCoin Posts: 45,012 ✭✭✭✭✭
    The states are separate entities, and much different than the electrons moving this world market on the global scale, but that's a problem for another committee.
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    TopographicOceansTopographicOceans Posts: 6,535 ✭✭✭✭
    Originally posted by: lordmarcovan
    The item came today. Strangely, though an eBay purchase, it was packaged as an Amazon.com gift, with gift packing slip and all? image

    But it works fine and was an OK item for the money.

    Thus endeth the OT saga of my mustache trimmer.

    Continue on with the tax talk if you like, though, since that was the original point of the question in the OP.
    OK this guy is just a drop shipper then. You buy on eBay, he places the order on Amazon who ships it to you.

    Amazon does charges sales tax, so it is legit

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    TreashuntTreashunt Posts: 6,747 ✭✭✭✭✭
    Originally posted by: TopographicOceans
    If the seller has a physical presence in the State the merchandise is being delivered to, and that State has a sales tax, then the merchant has to pay it.


    yes, correct
    Frank

    BHNC #203

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