90sChild Posted January 5, 2020 Share Posted January 5, 2020 (edited) Thought this would be an interesting thread, In 2019 I had a few sellers that were automatically required to charge me tax. I haven't been able to find the trend yet. I've also noticed as a seller I can sometimes remove the tax from the buyer's order. I don't know what that is about either. There doesn't seem to be any rhyme or reason, unless it is specific to certain states working with certain states. In the past 120 days I was charged tax from: New Hampshire. I was not charged tax from: Georgia, Indiana, New York, Michigan (go figure). Connecticut. The New Hampshire tax was on a 2020 item, the no-charges were 2019. For those of you buying very frequently, what trends are you noticing? Edited January 5, 2020 by 90sChild Link to comment Share on other sites More sharing options...
ADAMANTIUM Posted January 5, 2020 Share Posted January 5, 2020 (edited) None of that makes sense.... Texas charges internet state sales tax on the internet... I'm charged the Texas rate because I live in TEXAS.... That's the end of story... If your state doesn't charge sales internet tax yet, then you shouldn't be charged it at any purchase... If you are, your only to be charged the state you live in! The buyer pays the state tax they're in if their state demands it @90sChild Edited January 5, 2020 by ADAMANTIUM Link to comment Share on other sites More sharing options...
ADAMANTIUM Posted January 5, 2020 Share Posted January 5, 2020 (edited) Plus eBay charges it automatically The seller has nothing to do with it @90sChild Edited January 5, 2020 by ADAMANTIUM MGsimba77 1 Link to comment Share on other sites More sharing options...
kav Posted January 5, 2020 Share Posted January 5, 2020 Everything I have bought on ebay in the past few months no matter where it came from, was taxed. Link to comment Share on other sites More sharing options...
ADAMANTIUM Posted January 5, 2020 Share Posted January 5, 2020 4 minutes ago, kav said: Everything I have bought on ebay in the past few months no matter where it came from, was taxed. That's because your state has started charging it, maybe I'm miss understanding 90schild, but you shouldn't be charged "different rates each time...... Texas is 8.25% so I get charged that each time When I've sold, the buyer each time was charged different rates, because each time the "buyer was located in a different" state..... SO I'm not sure if 90schild is talking about on his end both buyer AND seller charges at different rates... Hopefully I made it plain kav 1 Link to comment Share on other sites More sharing options...
rjpb Posted January 5, 2020 Share Posted January 5, 2020 (edited) As of Jan 1st, ebay will collect sales taxes on all sales to Michigan. prior to that it was up to the seller. Currently ebay collects sales tax for 37 states + DC, and will start collecting for NC in February. 5 states do not have a sales tax, but I expect the remaining 45 will all have taxes collected by ebay and other large venues by the end of the year. The days of dodging sales tax by buying on the net are disappearing. Edited January 5, 2020 by rjpb Link to comment Share on other sites More sharing options...
rjpb Posted January 5, 2020 Share Posted January 5, 2020 (edited) Thanks to a SCOTUS case decided in 2018, states can now compel online sellers to collect sales tax, even if they don't have a presence in the state. States generally have an exemption for sellers who do less than $100,000 worth of business in their state, so if you have a small concern, you wont be liable, although you might be within your own state. However if you sell through ebay or amazon, they are considered the selling venue, and are responsible for collecting sales tax. If you sell routinely, I would suggest looking into getting a resale certificate from your state, though that will require you to collect sales tax from in state sales for sure. Edited January 5, 2020 by rjpb Link to comment Share on other sites More sharing options...
ADAMANTIUM Posted January 5, 2020 Share Posted January 5, 2020 16 minutes ago, rjpb said: If you sell routinely, I would suggest looking into getting a resale certificate from your state, though that will require you to collect sales tax from in state sales for sure. Would this help in making a purchase by me? I don't mind charging sales tax on things I'm selling, enough states have low enough, except for a few. But my state being among the few, being charged 8.25% each time is taxing Pun intended Link to comment Share on other sites More sharing options...
90sChild Posted January 5, 2020 Author Share Posted January 5, 2020 30 minutes ago, rjpb said: As of Jan 1st, ebay will collect sales taxes on all sales to Michigan. prior to that it was up to the seller. Currently ebay collects sales tax for 37 states + DC, and will start collecting for NC in February. 5 states do not have a sales tax, but I expect the remaining 45 will all have taxes collected by ebay and other large venues by the end of the year. The days of dodging sales tax by buying on the net are disappearing. This would explain the change for 2020. Looks like every single thing I buy now is going to go this way. ADAMANTIUM 1 Link to comment Share on other sites More sharing options...
ADAMANTIUM Posted January 5, 2020 Share Posted January 5, 2020 (edited) 37 minutes ago, 90sChild said: This would explain the change for 2020. Looks like every single thing I buy now is going to go this way. Thanks for the clarification! I didn't understand how you were charged a "New Hampshire" sales tax, and/or others, I'd avoid those sellers (maybe?) as they had no right to charge you..... only Michigan. Unless they were buyers, I got confused Edited January 5, 2020 by ADAMANTIUM Link to comment Share on other sites More sharing options...
Howling Mad Posted January 6, 2020 Share Posted January 6, 2020 I learned about the new sales tax the hard way...after a $6K book purchase. Oofta. ADAMANTIUM 1 Link to comment Share on other sites More sharing options...
MGsimba77 Posted January 6, 2020 Share Posted January 6, 2020 (edited) I don't pay internet sales tax unless the place I buy from has a physical presence in FL. I believe the only other state with no internet tax is Missouri. Unless the governor here is convinced otherwise there won't be any internet *fleecing* going on in the sunshine state Adamantium is right, Ebay charges the sales tax automatically when applicable without the seller even knowing about it. Edited January 6, 2020 by MGsimba77 ADAMANTIUM 1 Link to comment Share on other sites More sharing options...
Shrevvy Posted January 6, 2020 Share Posted January 6, 2020 A seller must have an "economic nexus" in the buyer's state for sales tax to be required. Each state defines economic nexus as they see fit. eBay is forcing sellers to charge that tax regardless of whether or not the seller meets the definition of economic nexus. At the same time, eBay is costing the seller money. eBay charges the tax and Paypal takes its fee out of the total, including the tax. The seller then remits the gross amount of the sales tax to eBay. It amounts to just pennies per transaction, but it rubs me the wrong way. Legally, I am not required to pay state tax in any state other than the one in which I reside because my sales are under each threshold. The amount is not material to me, but eBay is taking money out of every seller's pocket. If they are the seller of record, let them take the risk of returns, damages, inventory risk, etc. Otherwise, don't collect the tax. Or, if they do, don't stick the seller with the nuisance Paypal fees. The economic nexus test for Alabama (first on the alphabetical list), is $250,000 per year. Anything under that and seller does not have an economic nexus. States that have a threshold range from 200 transactions to as much as $500,000 and a number of transactions threshold (MA). In the $6,000 purchase referenced above, eBay would have stuck the seller with $12 in Paypal fees for the tax on that transaction (in Ohio, anyway). Link to comment Share on other sites More sharing options...
Domo Arigato Posted January 6, 2020 Share Posted January 6, 2020 2 hours ago, Shrevvy said: It amounts to just pennies per transaction... Link to comment Share on other sites More sharing options...
90sChild Posted January 6, 2020 Author Share Posted January 6, 2020 (edited) 3 hours ago, MGsimba77 said: I don't pay internet sales tax unless the place I buy from has a physical presence in FL. I believe the only other state with no internet tax is Missouri. Unless the governor here is convinced otherwise there won't be any internet *fleecing* going on in the sunshine state Adamantium is right, Ebay charges the sales tax automatically when applicable without the seller even knowing about it. Five US States don't have sales tax, Alaska, Delaware, Montana, New Hampshire, and Oregon. If your shipping address is to any of those, you won't be charged. Funny enough, the book I bought this year came from new hampshire so it looks like ebay is collecting the money and sending it right to Michigan, the seller's location had absolutely nothing to do with it. Yeah you read that right, Michigan is charging me sales tax for a purchase made in a state with no sales tax. https://www.investopedia.com/articles/personal-finance/112415/5-states-without-sales-tax.asp Edited January 6, 2020 by 90sChild Link to comment Share on other sites More sharing options...
MGsimba77 Posted January 6, 2020 Share Posted January 6, 2020 2 hours ago, 90sChild said: Five US States don't have sales tax, Alaska, Delaware, Montana, New Hampshire, and Oregon. If your shipping address is to any of those, you won't be charged. Funny enough, the book I bought this year came from new hampshire so it looks like ebay is collecting the money and sending it right to Michigan, the seller's location had absolutely nothing to do with it. Yeah you read that right, Michigan is charging me sales tax for a purchase made in a state with no sales tax. https://www.investopedia.com/articles/personal-finance/112415/5-states-without-sales-tax.asp Yes but out of the 45 that do collect sales tax FL and Missouri are the 2 that don't require automatic collection of online sales tax. I think Missouri is close to requiring it though. I just think its funny when advocates of this obvious fleecing twist themselves into pretzels in their attempts to deny it's a tax increase. Can they at least stop insulting people's intelligence?!?! I mean if it's not a tax increase then what would they call it? A "contribution expansion"? Any "anti tax" politician supporting this is like an animal welfare advocate sponsoring a dog fighting ring! Whatever...these flimflam politicians can all go bleep themselves!!! Link to comment Share on other sites More sharing options...
rjpb Posted January 6, 2020 Share Posted January 6, 2020 4 hours ago, 90sChild said: Yeah you read that right, Michigan is charging me sales tax for a purchase made in a state with no sales tax. https://www.investopedia.com/articles/personal-finance/112415/5-states-without-sales-tax.asp Because it was shipped to Michigan, where it comes from doesn't matter. ADAMANTIUM 1 Link to comment Share on other sites More sharing options...
ADAMANTIUM Posted January 6, 2020 Share Posted January 6, 2020 4 hours ago, rjpb said: Because it was shipped to Michigan, where it comes from doesn't matter. Lol I tried @90sChild to say that in the beginning, your going to pay Michigan sales tax on every purchase because you live in Michigan..... sales tax is where the "buyer lives!" Now if you sell something and someone from new Hampshire buys it they won't be charged sales tax, because you say that new Hampshire doesn't have sales tax.... Again buyer pays sales tax if there state enforces it Link to comment Share on other sites More sharing options...
ADAMANTIUM Posted January 6, 2020 Share Posted January 6, 2020 (edited) 15 minutes ago, ADAMANTIUM said: 4 hours ago, rjpb said: Because it was shipped to Michigan, where it comes from doesn't matter. Lol I tried @90sChild to say that in the beginning, your going to pay Michigan sales tax on every purchase because you live in Michigan..... sales tax is where the "buyer lives!" Now if you sell something and someone from new Hampshire buys it they won't be charged sales tax, because you say that new Hampshire doesn't have sales tax.... Again buyer pays sales tax if there state enforces it the New Hampshire guy wasn't "charged sales tax" because he lives and bought from New Hampshire that doesn't charge the sales tax to buyers. Buyers in Michigan will be charged and have to pay the sales tax because Michigan has sales tax, Michigan sellers won't have to charge New Hampshire buyers the sales tax because New Hampshire as a state doesn't have its buyers pay a "state sales tax" on any of their purchases...... so New Hampshire can by from anywhere in America and not be charged the sales tax, Michigan will have to pay Michigan sales tax even on purchases from non sales tax states...... because Michigan buyers in Michigan as a state have sales tax they pay everywhere and not just on the internet..... It's simple but rigorous, it's important, it sounds more complicated than it is I'll be quiet now Edited January 6, 2020 by ADAMANTIUM Link to comment Share on other sites More sharing options...
90sChild Posted January 6, 2020 Author Share Posted January 6, 2020 I'm aware, it is just funny how obvious of a money grab it is by Michigan that had nothing to do with the seller. ADAMANTIUM 1 Link to comment Share on other sites More sharing options...
