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I'm in Maryland and eBay seller is in California....why is he charging me sales tax on a coin?
Goldbully
Posts: 16,867 ✭✭✭✭✭
Is this something new on eBay? I won a Peace $1 tonight on eBay, and seller is charging me sales tax.
Is this the new normal?
Please advise...thank you.
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eBay charges sales tax. Sellers have no influence.
Apparently Maryland requires eBay to collect sales tax because too many people were evading their use tax. Many states do. Seller has nothing to do with it. If that coin should not be taxed under Maryland law, then you have a complaint that will stand up.
I also won a coin tonight at GreatCollections who is in California.....no sales tax!! What gives?
Per Google:
Maryland has started the process of freeing gold and silver from bureaucratic shackles. According to Section 11-214.1 of the Maryland Tax Code, "sales and use tax does not apply to a sale of precious metal bullion or coins if the sale price is greater than $1,000."
Just got this response from seller:
"Hello,
The following statement is directly from ebay because I never knew the real answer.
eBay charges sales tax on many purchases on behalf of the seller, without the seller setting up anything at all. This is to comply with marketplace facilitator laws, and happens automatically during the checkout process.
Thank you,"
Yes you have to pay Maryland sales tax on your purchase because it is under $1,000
Ebay's state tax info page
Give Me Liberty or Give Me Debt
This has been in effect for a long time in most states. You are supposed to pay use tax for eligible purchases but no one ever did so now ebay collects it on your behalf. The seller doesn't get any of it.
Collecting 1970s Topps baseball wax, rack and cello packs, as well as PCGS graded Half Cents, Large Cents, Two Cent pieces and Three Cent Silver pieces.
This
On a negative note, the seller does get to absorb the paypal fees on the tax collected.
Tax his land, tax his wage,
Tax his bed in which he lays.
Tax his tractor, tax his mule,
Teach him taxes is the rule.
Tax his cow, tax his goat,
Tax his pants, tax his coat.
Tax his ties, tax his shirts,
Tax his work, tax his dirt.
Tax his chew, tax his smoke,
Teach him taxes are no joke.
Tax his car, tax his grass,
Tax the roads he must pass.
Tax his food, tax his drink,
Tax him if he tries to think.
Tax his sodas, tax his beers,
If he cries, tax his tears.
Tax his bills, tax his gas,
Tax his notes, tax his cash.
Tax him good and let him know
That after taxes, he has no dough.
If he hollers, tax him more,
Tax him until he’s good and sore.
Tax his coffin, tax his grave,
Tax the sod in which he lays.
Put these words upon his tomb,
"Taxes drove me to my doom!"
And when he’s gone, we won’t relax,
We’ll still be after the inheritance tax.
Cheers, RickO
I had the same reminder last night with a buy. Coin was under $1000 so got hit with the tax (MA).
If you drive a car, I'll tax the street
If you try to sit, I'll tax your seat
If you get too cold, I'll tax the heat
If you take a walk, I'll tax your feet
I am lucky here in AZ, no taxes.....yet.
BORN FREE:TAXED TO DEATH!
MY COINS FOR SALE AT https://www.pcgs.com/setregistry/collectors-showcase/other/bajjerfans-coins-sale/3876
Great Collections leaves it up to you to remit the proper taxes to your state (like eBay used to do). If they get as big as eBay, your (any/all) state will go after them to remit taxes on your behalf.
This is the Wayfair ruling that allows all states to charge sales tax on internet purchases for in state residents, even if they purchase from an out of state vendor. Most vendors, including ebay, are complying to the new law. Some don't.....
Best, SH
Successful transactions with-Boosibri,lkeigwin,TomB,Broadstruck,coinsarefun,Type2,jom,ProfLiz, UltraHighRelief,Barndog,EXOJUNKIE,ldhair,fivecents,paesan,Crusty...
Individual states charge sales tax, buyers pay them, sellers collect and remit them. Sates have always held in-state sellers (such at brick and mortar retailers) responsible for collecting the taxes and remitting them. For out of state mail order purchases they have always required state residents to report the purchase and pay state sales taxes on it. Since that has never worked out well for the states' tax coffers, in recent years individual states have successfully required out of state sellers shipping merchandise to state residents to be liable for collecting the sales tax from the buyer and remitting it to the state.
Ebay and other on-line retailers and payment processors are now being required by a growing number of individual states to do the tax collecting/remitting on behalf of sellers. Each state is enacting its own laws and provisions. There is no "one method for all states." While sellers have no control over and cannot override Ebay's tax collecting algorithm, state tax collecting authorities also hold sellers responsible for collecting and remitting sales taxes where Ebay does not. Ebay is phasing in collecting for all of the states on behalf of the seller. It remains the seller's responsibility to see that taxes are remitted to the state(s). Ebay is currently collecting and remitting sales tax on behalf of sellers in all but 14 states. Where ebay has yet to start collecting the tax (or there exist no state tax law requiring them to), sellers should be using the Sales Tax Table found in their Account Settings > Selling Preferences > Use the Tax Table (Edit) to comply with state tax requirements by telling ebay, with the tax table, to collect the seller added percentage for each state not currently being taken care of by Ebay's algorithm. Sellers also have the option to add a sales tax when they send an invoice to an unpaid buyer, however when there is an immediate payment upon ebay sale, there is no option to send an invoice.
On a personal note, it still remains unclear to me how a state can claim jurisdiction over a seller who has no presence in the state. Would they actually be able to successfully extradite the seller to face charges? As a seller facing a charge of violating this law, my first suggestion to my lawyer would be to challenge jurisdiction. Not long before what we say over a telephone or in an email becomes subject to any state law concerning "speech" that is created in the state where the person receiving the phone call or the email resides. Normally state laws concerning any behavior or activity are restricted to performance of that behavior/activity within that state. This is why each state has its own set of laws. I believe it is just a matter of time before this "over reach" by one state's laws into another state is successfully struck down in court.
Give Me Liberty or Give Me Debt
This is not true, at least for CA residents.
@CoinJunkie which part is not true? Do they already charge CA residents tax? That makes since because it's an entirely in-state transaction. I'm in NM and automatically pay sales tax on eBay purchases, but not GC wins.
That is incorrect ebay now does collect taxes for AZ residents
My Collection of Old Holders
Never a slave to one plastic brand will I ever be.
I just got unexpectedly dinged in a Heritage Auction over the weekend. My state changed their collection practice in October apparently. I was not expecting to see a line item for a $600 tax on the invoice.
Businesses over a $ threshold (varies by state still I think but it's 200k or so typically) or marketplaces like eBay now have to charge internet sales tax to almost every state (unless the item is exempt like coins to many states) due to a Supreme Court decision allowing that back in 2018.
Most sites/auction houses are in compliance & collect the tax because that's the law. There's a few out there that are breaking the law though or don't meet the threshold. Creates some confusion.
Certainly sucks. Ebay does make it easier to submit a resale license if you have one from your state though, then you won't get charged the tax
You’re going to pay tax. The good ole days are long gone.
Shouldn't the thread title read:
I'm in Maryland and eBay seller is in California....why is eBay charging me sales tax on a coin?
Just wondering...
I should have simply said: That is not true for CA residents.
I just checked their policy and they don't collect sales tax anywhere else. BTW, CA exempts coin/bullion orders $1500 and over from sales tax. Paper money does not receive that exemption, unfortunately.
You must live in either California or New York
>
I'm not @CoinJunkie but I am a coin junkie. Here is GC's only tax policy:
Tim
Here's a suggestion to everyone on this board: next time you feel like bashing a state because you don't agree with their (tax or other) policies, DON'T. It has nothing to do with coins, and makes you sound like a simpleton.
I wasn’t necessarily bashing the state; I was more making a joke that they have high taxes.
This is because GC is located in California.
Also, states charge sales taxes. Merchants, payment processors ans sellers collect and remit sales taxes.
Give Me Liberty or Give Me Debt
@derryb - yes, understood. I was atempting to explain GC's policy in regards to in-state vs out-of-state purchases as it appears they only collect sales tax on California residents and only when the invoice is less than $1500.
This matches my experiences on my purchases from GC. I am a California resident.
Thanks - Tim
In states where GC has crossed the threshold, they are going to have to collect sales tax as a marketplace/facilitator. Just depends on state law.
ANA 50 year/Life Member (now "Emeritus")
Most small independent coin dealers do not reach the state tax thresholds (outside of eBay and their own state).