Illinois is one of the state's that eBay is gonna start taxing as of January 1.
dontippet
Posts: 2,615 ✭✭✭✭
Just found out that Illinois is going to institute their state sales tax on online purchases starting next year. IIRC, precious metals are exempt from Illinois state sales tax. Does anyone know how you go about getting the taxes that ebay collects back?
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Successful transactions on the BST boards with rtimmer, coincoins, gerard, tincup, tjm965, MMR, mission16, dirtygoldman, AUandAG, deadmunny, thedutymon, leadoff4, Kid4HOF03, BRI2327, colebear, mcholke, rpcolettrane, rockdjrw, publius, quik, kalinefan, Allen, JackWESQ, CON40, Griffeyfan2430, blue227, Tiggs2012, ndleo, CDsNuts, ve3rules, doh, MurphDawg, tennessebanker, and gene1978.
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I do not know about getting the taxes back, but transactions through OK have been taxed since earlier this year. If you need some form of tax-exempt form through your state, possible sources could include coin/bullion dealers in your area.
BST transactions: dbldie55, jayPem, 78saen, UltraHighRelief, nibanny, liefgold, FallGuy, lkeigwin, mbogoman, Sandman70gt, keets, joeykoins, ianrussell (@GC), EagleEye, ThePennyLady, GRANDAM, Ilikecolor, Gluggo, okiedude, Voyageur, LJenkins11, fastfreddie, ms70, pursuitofliberty, ZoidMeister,Coin Finder, GotTheBug, edwardjulio, Coinnmore, Nickpatton, Namvet69,...
Nooooooo!!!!!!
Collector
91 Positive BST transactions buying and selling with 56 members and counting!
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I have different ebay accounts (ID's) for business and personal purchases. It took all of 5 minutes to submit the tax exempt paperwork for my business account, so no sales tax is collected.
Currently I only buy on ebay if there's a promo so add this in (which was inevitable for IL no doubt) and I doubt I'll buy from there more than once or twice a year if ever.
Is this tax also applicable when buying from HA, GC, Stacks, Legend, etc?
eBay will collect tax on items that are taxable. If there is no tax on bullion, they will not tax it. This is based on category, so if the seller lists bullion in a non-bullion category - so you get eBay Bucks or they have a coupon - the item will be taxed.
Probably. The threshold is only $100k per year
https://www2.illinois.gov/rev/research/legalinformation/EmergencyRules/Wayfair/Pages/default.aspx
You meant to say "Illinois will start taxing eBay purchases on January 1st"
Hellinois keeps increasing taxes yet the debt still increases also.
Contact your state revenue dept for info on how to get re-imbursed for improperly collected sales tax. Usually they have a form that you submit along with PROOF that the tax was collected improperly.
In my case I just avoided any coin purchases via eBay until all of the bugs were ironed out.
It should not apply to those companies (HA, GC, Stacks, Legend, etc) since there is no sales tax for coins and bullion in Illinois.
Now whether or not the law will be properly applied, that is another question.
Well then it also shouldn't apply to coins or bullion on eBay...so why are we having this conversation? LOL
vote differently and maybe taxation will change?
What do you expect from them? Crook County is the worst!
Based on what others have reported, it appears eBay is still adding sales tax for some states that have none for coins.
@Lakesammman were you the one that mentioned your state was tax free for coins but eBay still added it to your purchase?
And then you had to get a refund from your state?
And that’s where I am
Collector
91 Positive BST transactions buying and selling with 56 members and counting!
instagram.com/klnumismatics
Off topic, LOVE your Avatar, dude. GO REDBIRDS!!!
"Jesus died for you and for me, Thank you,Jesus"!!!
--- If it should happen I die and leave this world and you want to remember me. Please only remember my opening Sig Line.I would not count on getting the Tax back.
I miss the old days.
100% Positive BST transactions
While ebay's algorithm appears to charge state income tax based on category (the most logical way to do it), fact remains that taxed bullion purchased from a non-bullion category by a resident of a state that exempts bullion should be eligible for a refund from that state. Proof of purchase of the tax exempt item is the title and description of the purchase, not the category it was listed in. Unfortunately, the buyer of the tax exempt will likely have to deal directly with the state for which ebay collected (and remitted) the tax.
It's fairly unrealistic to expect ebay to alter it's tax collecting algorithm for all the various exemptions from all the states that offer them.
No Way Out: Stimulus and Money Printing Are the Only Path Left
current list of states for which ebay is collecting sales tax
No Way Out: Stimulus and Money Printing Are the Only Path Left
It's almost as if the two are related.
I hear the string trio playing "Danny Boy" in the distance.
People aren't going to stop buying stuff online just because states are starting to collect taxes on the sales.
In general, this is true. You can't avoid the tax since it exists in your state. But it might change the calculation. While it is still more convenient to buy it online sometimes, it may now be the same price as a B&M establishment or even cheaper depending on shipping cost.
It is really complex for coins because so many of the part-time dealers appear to operate as tax cheats at coin shows.
True story:
I went to a local coin show last month. I brought a bunch of resale certs with me for anyone I don't normally do business with. I bought a few coins from a NY dealer - I'm in NY. There is NO DOUBT he is subject to sales collection in NY. So, he quotes me a price without mentioning tax at all or asking if I'm exempt. I hand him a resale certificate and he looks at me funny and asks, "What's this for?"
I laugh and say, "to help you with your State Sales Tax compliance."
He said, "Oh, yeah" and then started looking for some place to put it. It's like he didn't know where to file it and didn't want to crumple it up and throw it out right in front of me.
Yes, I heard Amazon only has 47 months left before it goes bankrupt.
Amazon is expertly managed and will be the survivor. I am no fan of the extortion tactics for relocation and expansion and would not touch the stock at current levels, but Bezos is a genius. The Ebay executive team is the keystone cops.
Amazon is for Mass Merchandisers.
eBay allows a small business to thrive.
It is your choice whether you want to thrive or not.
And yet no one has touched eBay in 20 years. They remain 1st in class.
We should bet. You short them. I'll buy their stock. We'll compare notes in 34 months.
I already tried to bet him cash.
Coinstartled will not put his money where his mouth is.
It's not just sellers. Many states have "use taxes". What percentage of buyers would you guess voluntarily reported their out-of-state purchases and paid the corresponding taxes?
I would bet single digits. Not percentages, but single digits of taxpayers. My first tax software automatically put $0 in that box.
Buyers of out of state, on-line merchandise were not complying with existing state tax laws to report and pay sales taxes on the purchases. This is why states passed new laws requiring payment processors such as amazon, ebay and paypal to collect and remit sales taxes to the individual states for on-line purchases.
I personally don't see how a state can apply their laws (jurisdiction) to a seller who never steps foot in their state. Then again we seem to be able to apply federal law to foreigners who never enter the country until extradited.
No Way Out: Stimulus and Money Printing Are the Only Path Left
My grandfather told me to never place a long term wager with a guy that fishes for sharks off of a kayak.
Fortunately we have viable markets to satiate our desire to wager of the success or failure of various entities.
Ebay has created a path of confusion. Even you, EOC, a very experieced Ebay client had difficulty establishing your tax free resale status with a group of nice but underprepared customer service reps.
There is tremendous confusion as to who is taxed and what amount and for which items. Amazon has seeming implemented the state and court ordered taxation as Ebay fumbles happlessly.
Much chaos regarding fees for different sectors. Pricey athletic shoes, no final value fee. What about coins though or Bruno Magli slippers? Again, disorder and confusion.
Now the Ebay bucks promotions. Fred and Joe and Eunice get them. Sid and Barbara and Ernest do not. No big deal on buy it now purchases, but on an auction, Ebay in essence acts as the shill as one bidder with the promo has an 8 or 10% edge over the next.
They have a couple or few years left, then we can talk about what went wrong.
Pots legal January 1 that should throw some tax money in the coffers
Yes this state is so greedy for $$$ they even legalize drugs for $$$ while at the same time they proclaim "public safety" is their #1 priority. Puke......
I was a customer of your Ebay merch. I made a little on what I bought and had several problem free transactions. Please notice I said WAS a customer. After seeing your interaction with this @Coinstartled guy I decided you were not a person I wanted to do business with. Your endless ragging on him gets old.
If Illinois metals are tax exempt in Ill. Ebay will not collect it. On Jan 1st just take something to checkout to test it.
selling 3, I would never suggest who you should or shouldn't do business with, but EOC is a good guy who certainly is proficient in the error coin market. We regularly disagree on various subjects, with Ebay often the focus, but words fly around here faster than peel and eat shrimp at a $9.99 Vegas buffet. Nothing sticks though and we move on to the next thread.
I would not hesitate to buy a coin from EOC if the quality and price is right. Same goes for most everyone on the forum.
Many good people reside here who freely help anyone that asks for it. And hoping that they all enjoy a Merry Christmas.
Somewhere there is a fair tax. I do not know where.
``https://ebay.us/m/KxolR5
Which ebay category? Eligible for ebay bucks?
No Way Out: Stimulus and Money Printing Are the Only Path Left
Seem to be a number of Illinois tax threads alone.
Of note, Amazon's cut varies by category as well.
I'm going to go out on a limb and assume that you have not done much selling on Amazon. At least in my experience selling a lot on Amazon and a little on eBay that generally eBay is more seller friendly than Amazon.
It's just that he hates eBay THAT much.
Amazon fees are way more than eBay. Amazon is LESS friendly to seller's than eBay.
I am less a fan of Bezos and Amazon than Ebay. Question is, which one survives and that will be the goliath with the superior management team. Amazon is nothing if not aggressive and innovative. Ebay has been trying to punch its way out of a paper bag for over a decade,
You probably should contact the state tax commission, or talk to a tax accountant.
No reason both can't.
Coke - Pepsi
McDonald's - Burger King
Hilton - Marriot
Lowe's - Home Depot
and to keep it coin related,
NGC - PCGS
Fair enough, but both companies also compete with Wal-Mart and Target and Best Buy and Barnes and Noble and Apple and Home Depot and Kohl's, though there certainly is some cross marketing overlap.
Tax collection has closed the online advantage dramatically over the B&M's.
Huge advantage of AMXN over Ebay is the shipping. They can deliver a pair of Nike's for a couple box while the schlub on Ebay is paying ten bucks.
In a tight margin business which is most of what is transacted on Ebay, the seller- patient won't survive.
Did they fix this ? I ran a couple checks and I'm not getting tax on coins or paper money. Did a check in sports memorabilia and I got tax.
Ta> @MasonG said:
I believe that the taxes on our hobby are related to our (coin related) hobby, BTW I'm living in the great state of Illinois....
As of this moment GC seems to collect sales tax on California ONLY, this info might not be correct but that's what their site currently states.
I love Illinois!
https://zerohedge.com/news/2018-01-05/americans-are-ditching-these-five-states-record-numbers
Just found a coin I was charged tax. Wonder if it has something to do with sellers state.
The only tight margin business on eBay that you are thinking about is coins. That's the party you keep ignoring. Sure, eBay coin businesses MIGHT be doomed. That still leaves the other 97.5% of their business.
For traditional retail that runs on a net 40% margin, the eBay small seller advantage is NOT having the overhead of a B&M. Even Amazon has the overhead problem with all the warehouses they've built.
Sure, picking up furniture at the local Walmart might again become the norm because of shipping/taxes etc. But small or light retail items can still be transacted on eBay.