Noticed this the other day when I got a second charge on my credit card after buying something on ebay. Looks like a number of states are now having Evilbay collect them. Gonna have to take that into account when buying there now.
The eMob taking a bigger cut. I hate how they take a 10% bite on shipping charged (as the seller), when that doesn't even involve them. Time for a new & improved 'ebay'.
The 10% on shipping was done to curtail sellers from listing items often well below market price and then charging extreme shipping to make their profit margin and avoid paying ebay fees on the cost of goods. Example. Guy sells a widget for 100 dollars free shipping, and pays ebay 3 dollars (3%) then Paypal takes their 3 dollar cut. Guy ships the widgit for $15. The guy takes $100, minus $6 to PP and ebay, as well as $15 shipping. Net is $79. Another guy sells the same widget for 10$ and $90 shipping. He pays ebay .30 and PP .30 and $15 (actual) shipping, so his net is $84.40. Ebay and PP saw this and figured the 10% will offset their "losses" and why a lot of folks are going back to higher price and "free shipping", since people see the very high cost of shipping and "everyone likes free". One person sees and item for $80 and $20 shipping, and thinks "$20 on top of an $80 item is damned steep!" Then looks at the same item for $100 and "free shipping" and thinks "Wow, $100 dollar item and free shipping! What's not to like?" They psychological pendulum swings back.
Just bought something yesterday, the tax does not show up in your original transaction, if you scroll down on your receipt you will see a separate transaction for the tax. Just paid $4.38 tax on a $50 used item. Sales tax on used parts is such a scam since tax was already paid when the part was new.... What a windfall for all the States...sucks for the consumer.
Just another nail in the coffin of the small independent seller. Ebay already is largely imported trinkets - key chains, plastic accessories, and other miscellaneous widgets from Asia.
That's a really good point. I never thought about that. It seems very sketchy, but I am sure there are lawyers or CPA's on this board that would know the law better than me. What's next? Will the kids need to charge tax on their lemonade stand sales? Even though the state already received their tax on the lemonade when it was purchased from the store? I guess it's like anything else. If you sell it, used or not, it gets taxed. The reason ebay is taxing is because all the seller and buyers wheren't taxing/reporting.
That’s why the inheritance tax is wrong, too. Just because it only affects the really wealthy doesn’t make it right; taxes were paid on income, earnings, and the property bought with them. Why should the government get another cut just because a rich person died? Patrick
[ When I was in college, I had a professor in one of my economics classes who told us that there is a theory that if you could collect all of the money in a capitalistic society (think USA or Canada) and divide it so that every adult got exactly the same amount of money, in three years the distribution of money would be almost exactly what it had been before you collected it, and it would be the same people who were rich or poor. Part 2: Never doubt the financial stupidity of the American people. A nearby chain of Kia dealerships (Fuccillo Kia - Billy also has Ford dealerships in the New York area) is advertising "If you have zero dollars in your checking account..." and goes on to say that you can buy a Kia with absolutely no money down. My friends, if you have zero dollars in your checking account, do you really think that purchasing a new car should be at the top of your priority list? BTW: Fuccillo Kia is the highest volume Kia dealer in the state of Florida and (I believe the second highest in the United States). Fuccillo Kia is a chain, but I used the singular because it's his Cape Coral dealership that is the number two in the USA, not his entire chain.
I dont see how this ever got pulled.. Ebay did fight this BS.. I dont know any state tax rates but this stinking state.. Every county different rate. Cities have their own rate also..
Supreme Court decision- South Dakota v. Wayfair inc https://www.supremecourt.gov/opinions/17pdf/17-494_j4el.pdf
They started going after Mail Order sales over 20 years ago. The State of North Carolina sent tax guys to the Charlotte show, and went around to each vender stating they either had to cease and desist their sales or start paying taxes for every purchase they ever got from their state, regardless of whether it was a mail order sale or not. Their justification for this was we were setting up a store in their state, even though it was only a temporary one, therefore they could demand their cut of the sales. The company I worked for at the time opted to not sell any products at the event, and only handed out cards. When the show was over I had just enough money to get home, and yes I still remember the show where this first started. This was years before I carried any credit cards. If you ever wondered why some venders only display their goods at a car show, and do not sell anything there, now you know. They could not compete with other venders that did not do car shows and would not have to pay for the tax. Duane
They did the same thing to Hershey about the same time Duane . There was a outspoken guy named Matt Joseph who was well known to the Antique collectors who wrote about it in Skinned Knuckles Magazine . I don't know what happened to him . He was from the MN or WI area .
You are correct, right after the Charlotte show, a bunch of other states started jumping on the band wagon. I remember Year one setting up only displays for years. The thing that really pissed me off was they targeted the larger venders only. If you were a small vender, or an individual selling his own parts, they simply walked on by. My point was if you were going to enforce this then do it for everyone or don't do it at all. Duane
I never understood how they can get away with taxing a used item. The car I just bought has been sold 3 times, each time NYS collected an additional $3K in sales tax on the used vehicle. Even better, when I purchased my GS from out of state I had to pay NYS sales tax on the purchase price, how the hell does NYS deserve anything on that sale? I wonder what pet project is going to get this extra $ windfall in NY State? The NYS govt including the governor just voted themselves some big fat raises though...
