From eBay on internet sales tax
RockyMtnProspector
Posts: 754 ✭✭✭✭✭
_Dear xxxx,
The U.S. Supreme Court has announced their decision on the S. Dakota v. Wayfair case, overturning the long-standing rule that states could not tax businesses or sellers outside of their borders. Now is the time for Congress to act on legislation that protects small businesses.
And we need your help.
Please consider signing our petition to show our country's political leaders that these new Internet tax burdens could permanently damage U.S. small businesses. The petition takes less than a minute to complete. We will soon deliver this petition to President Trump, key members of Congress, and select state governors, so we need you to participate now.
eBay has always supported tax policy that is fair to entrepreneurs, artisans, and small businesses. Rest assured that eBay will continue to fight this battle on behalf of all of our valued customers.
Sincerely,
eBay_
Gonna get me a $50 Octagonal someday. Some. Day.
Comments
I can sleep better knowing that Ebay is standing up for me!
I'm sure the numbers they're looking at are to benefit buyers, because people will always sell things to make $1. This will further crush small business. People still lose their minds over flat rate insertion fees.
Tbh tho, it'll probably end up as ebay doing a flat tax, with their shipping service and labels mandatory. Ebay will be everyone's biggest customer, at a giant loss to small business revenue. Companies that move 2k units a day will be fine.
I got the same email from those buggers.
I have no sympathy for Ebay - they reap what they sow. Time to level the playing field.
I laughed out loud as I pushed the DELETE key on that spam.
“In matters of style, swim with the current; in matters of principle, stand like a rock." - Thomas Jefferson
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after putting in a lot of thought in this tax thing, if it wasn't for collecting coins, i would be putting in at least 25 percent of my check in my 401 k at work, instead of 10 percent, I would be at around 800 thousand in my 401 k at 25 percent. coin collecting in my view has now become a very expensive hobby for me
It seems to me, that until the IRS defines small business (and the courts settle the lawsuits to arrive at a final definition), then the tax collection is an open question - except for the big guys. I do not sell, so no issue here... and I buy from those who do not charge tax....again, not my issue. Really great to be me....
Cheers, RickO
I signed the petition. This decision is a blow against ordinary people / the little man. It’s an absurdity I should owe tax to a state I don’t live in and will vote against the party or individual that supports that.
not gonna pay and not going to put my name identifying myself to whoever wants to make a list of potential piggy banks
This thread and the other thread shows ....
Some people will complain about the government taxing its citizens
Some people will try to avoid taxes even if it is breaking the law
Some people will look ahead and plan for it and be compliant with all the laws about interstate commerce and taxation. Hopefully, if it is implemented computer software will take care of all the paperwork.
You of course realize that in many states, coin transactions are a sales tax free event. Is it possible that the software that Ebay implements may not realize that and some of your customers will get hosed with extra taxation...or they may instead buy their coins elsewhere.
now i can sleep knowing ebay is totally behind me now
It is computer software so if the information (states that have no sales tax) is entered correctly then all is good.
You do realize that currently not everything is taxable in every state (groceries, books, occasionally clothing...) and yet Amazon, Walmart, Target etc. manage to have online systems that work just fine and charge (or don't charge) the appropriate tax rate depending on where the buyer is.
Internet sales to out-of-staters should be treated just like brick and mortar sales to out of state tourist: Collect and pay state sales taxes on the purchase in the state which sold. Makes it much simpler for on-line sellers to deal with just one tax authority and one set of rules. My only problem with collecting state taxes for on-line sales is the number of different taxing authorities and the number of different rules.
No Way Out: Stimulus and Money Printing Are the Only Path Left
very good suggestion.
With some less than 50 different states with which to deal (Some states don't have a sales tax.), this is a nightmare for small businesses, The states might not find it to be a bed of roses either when they have dealer with a bunch of small checks at the end of the tax period.
When I was a dealer I had a Connecticut tax number. I only had one or two shows per year there, and since Connecticut did not charge sales tax on coins, the only taxable items I sold were tokens. If I sold one token for $10 at a show I owned them 60 cents. Yes I sometimes mailed checks to them that were that small.
fair enough answer. What happens with Your website sales. The complexity will drive the small independents to Amazon and Ebay just to sort out the taxation complexity.
One can always move their business to the BST. Almost forgot, it's already being done. However, that's only good until it also gets taxed.
It's always surprising to see eBay on the right side of something.
The decision is not only unconstitutional but it will destroy most small businesses before they ever have a chance to get big. It is very bad for business and catastrophic for the coin market.
That depends.
For anyone using a merchant plug-in on their website, the merchant plug-in will probably be able to handle it. Shopify and similar merchant sites make a living by providing the payment services to websites.
If you are just using a website without a gateway and handle transactions by phone or email, you'll either have to do it yourself (which would be a nightmare) or start contracting with a merchant services firm.
I am perfectly fine with the change, by the way. I already have to charge sales tax in NY State. As a result, I do almost no business in NY State. LOL. But as long as the playing field is level for everyone, I'm not going to fight the tax man.
I think most of the complaining you are hearing is from buyers not sellers who are afraid they will no longer be able to avoid sales tax. To that end, I say complain to your State government about sales tax in general, not about internet sales tax.
Anyone who is required to collect sales tax on eBay is also required to collect sales tax on BST. BST IS NOT A TAX FREE ZONE.
Does anyone really think eBay cares about small businesses?
Well it was deemed constitutional by a 5-4 SCOTUS majority, including prominent conservatives.
One should anticipate a double digit national sales tax to follow in the not too distant future.
The ruling is that it is quite constitutional. I would prefer to see a uniform national internet sales tax as I'm in a high tax state, BUT the issue with "interstate commerce" is not compelling. You have to argue that a transaction between two states does not actually occur in either state in order to avoid the tax man. That is nonsensical.
If NY State, for example, defines the sale as taking place at the locus of the Buyer (they do, by the way) then a sale from a source in Ohio to a resident of NY is actually deemed to be a transaction IN NEW YORK. As a result, NY has the right to tax it if they wish.
The best reason for a national solution is that you run the risk of NY defining locus at the Buyer locale and Ohio defining locus at the Seller locale and then there would be double sales tax!!! Yay!!
Well, after all, it is their bread and butter
No Way Out: Stimulus and Money Printing Are the Only Path Left
Lousy ruling by SCOTUS. Will negatively effect small businesses. We're taxed to death these days, and getting worse all the time.
Despite whichever argument, I haven't heard of anyone with some sort of benefit in this except big companies and the tax man.
Now your dreaming....I have serious doubts, that anyone ever paid or collected sales tax on a BST transaction.
I didn't say anyone had. I said that anyone required to collect it on eBay is required to collect it on BST. I would, for example, have to collect sales tax on BST since I have a resale certificate.
I don't think it will hurt. Coins and bullion are not taxed in many states as it is. This has a smaller impact on numismatics than other retail categories. It may change the price paid a bit if people compensate for the tax, but it won't stop people from buying. And for someone like me who is buying (tax free) to resell, the impact is negligible. IF people bid less to compensate for the tax, I will buy for 5-7% less and sell for 5-7% less and there is no effect on me.
It would probably help my sales in NY as people currently avoid me so as to avoid the tax.
The handful of independent B&M retailers (all categories) that remain may benefit as they will no longer be at a sales tax disadvantage vs the online folks.
Especially big ticket items where 5-7% is a big $ amount.
Best Buy must be dancing in the aisles. For years, they've become a showroom for people buying from the internet. Soon, there will be no reason not to just throw it in your car.
And Amazon will win here also. People misunderstand Amazon's stake in this. The Holy Grail of online retail has been same dame delivery. To that end, Amazon has been building fulfillment centers all over the country. As a result, they have locus in most states now. 15 years ago, Amazon was built on tax avoidance (to some degree) coupled with lower price structures because of the lack of B&M stores. Today, Amazon suffers from tax avoidance and will benefit from a level playing field as long as they can maintain a lower price structure than the B&M alternatives.
Walmart will benefit, as will walmart.com for the same reason as Amazon.
We all hate taxes, BUT let's protest the taxes not the venue in which they are collected. If you are, like me, in a high tax state (NY), complain about the TAXES not the internet.
If I were not a reseller, for example, I would under CURRENT LAW be dissuaded from shopping locally, from buying at Stack's or Heritage because I would have to pay tax there while collectors in other states would not have the tax issue. Just from the standpoint of Stack's and Heritage auctions, this potential change is a benefit to NY State collectors who would now no longer be at an 8% disadvantage relative to 46 or 47 other states. [I'm not sure how many of those states exempt coins.]
Overpriced coins + sales tax for purchase = further decline- death of coin hobby.
you keep talking about paying taxes to the state where you live. I want to know how east podunk expects to get me to collect 40 cents tax on a 20 item once a year? Not going to happen , small local governments will not be able to enforce their nonsensical taxes at an arms length
eBay will lose half their sellers unless they implement, collect, and pay the taxes.
This will also open up their claim to just being a 'venue'...
It is also possible that this may create a pre-tax rush.
I sold 3 big coins in the last 24 hours.
And how big were they? 5 oz. America the Beautiful perhaps or even bigger? (Are they even coins?)
it's crackers to slip a rozzer the dropsy in snide
Many of the coins I sell are way bigger than normal ........
You sure showed me a thing or two!
it's crackers to slip a rozzer the dropsy in snide
We live in an era that Congress doesn't read the legislation they pass and most laws are actually passed by departments of the government. Most other laws are by the executive or supreme court branches and the supreme court doesn't read at all.
It was unconstitutional last week but now it isn't;
Article [X] (Amendment 10 - Reserved Powers)
"The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people."
The Bill of Rights specifically disallows the federal government from imposing unequal laws in various sections. It is certainly unequal for New Hampshire businesses which has no tax to be forced to collect taxes for other states. This certainly appears to be legislation from the supreme court which is a branch of the government. At the very least the businesses should be paid for collecting the tax.
Of course if they exempt small business and software arises to make this less onerous then the whole thing may be a tempest in a teapot.
http://www.courant.com/business/hc-biz-newegg-collects-sales-tax-20180328-story.html
They force the retailers to provide the information. This happened in CT this year. CT residents who purchased something from Newegg received letters from the dept of revenue saying they owed sales tax on items they purchased from newegg over the last year.
I didn't get that mail, but I would sign.....
Does anyone have a link ?
That happened in Colorado too
I bought some camera gear from New York 's B&H in 2017.
B&H sent me a letter about three months after my single multiple item transaction that my entire purchase was reported to Colorado Revenue for taxes due.
Foolishly they did not credit me for a $2100 return on the order they reported to the State, so I called B&H and was told they only report total sales to Colorado, not returns in late January 2018
Then without prior notice, a bit before April 15th 2018 I got an updated receipt from B&H, less $2100 return and supposedly that updated total was sent to the State.
Another bad decision. Every state that has a sales tax also has a use tax. If they choose not to enforce it, that's their policy decision, not the problem of an out-of-state vendor.
We don't have sales tax or hotel/rental car tax if we provide our drivers license. (Oregon). Out of state businesses won't hand the money to you, of course, most times you have to ask and a few times insist. Especially the hardest hit border businesses.
There was a loophole with this regarding smokeable flowers that aid in health. Washington state taxed the heck out of it, but OR residents could walk in and pay pennies on the dollar for product. When OR started losing business and the weed tax, they changed the laws.
See kids? Stay off of drugs.