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dachman
09-01-2011, 12:56 PM
I just won an item an hour or so ago and when I go to pay for it, it's charging me sales tax, about 10% which is almost double what WI's rate is, which I have never had happen before. The seller is in AZ and I'm in WI and I'm pretty sure I've gotten stuff from there before without such a thing happening.

Just wondering what is going on. It has been my understanding for a while that as long as it is an out of state purchase, there is no sales tax. Hence why things of Amazon and what not are tax free.

The seller only has 44 feedback so it's not like he is running a business off eBay. I have no problem paying the tax if it is something legit but it just doesn't seem like it is.

Thanks!
alexlazarevich
09-01-2011, 01:45 PM
The only tax that should be charged on eBay is State Sales Tax. The seller can only charge tax to those addresses that are in his same state. You should be able to have the tax removed from the invoice and eBay should back you up. I'd call eBay if the seller gives you a hard time. The seller could possibly be in trouble if he's charging state tax for out of state transactions.

Let us know what happens, and good luck!
dachman
09-01-2011, 01:48 PM
The only tax that should be charged on eBay is State Sales Tax. The seller can only charge tax to those addresses that are in his same state. You should be able to have the tax removed from the invoice and eBay should back you up. I'd call eBay if the seller gives you a hard time. The seller could possibly be in trouble if he's charging state tax for out of state transactions.

Let us know what happens, and good luck!Thanks! :)

I haven't email him yet since I wanted to make sure I wasn't being dumb or anything. I'll contact him right now.
MasterOfTheDark
09-01-2011, 04:17 PM
If he has a physical presence in your state then he would be required to collect sales tax. Could be a warehouse, second home, or maybe his primary home while he's off at college, or another various reason.

I don't believe any states have enacted laws requiring sales tax on all internet purchases (but it is in the works and will happen fairly soon:(), but I could be wrong. If a state has already done it, I haven't heard about it.

Odds are it was probably just a mistake in his Ebay settings, but I'd contact him for clarification.:)!
dachman
09-01-2011, 05:10 PM
I ended up getting a corrected invoice with no explanation so oh well problem solved lol.

Thanks for the insight guys!
37Jetson
09-01-2011, 07:36 PM
Internet sellers cannot collect sales tax for sales across state lines, but many states (Michigan for sure) require you to pay the sales tax (that you thought you saved) to them.
MasterOfTheDark
09-02-2011, 05:18 AM
In an odd coincidence, I just saw this article on MSNBC.com's website:

The tax, which took effect on July 1, requires retailers outside of California to collect sales taxes on online orders made through California-based affiliates.

Amazon offers Calif. 7,000 jobs if it drops tax - Business - US business - msnbc.com (http://www.msnbc.msn.com/id/44365345/ns/business-us_business/#.TmCqOKggz3A)

It won't be long before all internet sales are taxed.