2019 New taxes to some states

This is going to be a headache for a lot of small businesses. I think that it will affect Windstone store sales also.

Hey Guys here is one of the eBay articles about collecting taxes and those States that eBay will collect for. The article lists those States that eBay will collect for sellers on their behalf and the dates effective per State listed. However – some States (could be more than what eBay lists too) have had this law in effect prior to 2019 and perhaps as early as October 1, 2018, when the law was instituted.

‘Happy’ Reading! And I’m sure this is going to stop a lot of occasional eBay sellers, such as myself, from selling on eBay ever again…. :/

https://www.ebay.com/help/selling/fees-credits-invoices/taxes-import-charges?id=4121

Oh – and I just bet that PayPal will be following, if they haven’t started yet, for PayPal ‘Goods and Services’ invoices… unless us ‘Sellers’ need to figure out the taxes and remit them on our own now.

Honestly, I don’t think this is going to be that big of a deal for most occasional sellers. I have used PayPal to sell to people in the same state as me, and have never worried about it. I think all states with sales tax require you to collect it, but I never have. If your volume is very low, and eBay/PayPal is not automatically charging the buyer the tax & handling everything, I doubt the states are going to try to find you unless your volume is fairly high.

However, I wouldn’t be surprised if many states would consider $10,000/yr to be “fairly high”. I probably make less than $1000/yr selling things.

*You* don’t pay the tax. If you read the details at the link, you are supposed to set up a tax table by state for states eBay doesn’t charge the tax automatically, and eBay will charge the buyer and collect and remit for you.
I hope eBay is working on adding all states that require it to the automatic calculation and collection. They say more states will be added.

If they did that, they should have charged the buyer. Check the sale price + shipping versus amount collected. “All” you are losing is PayPal’s 2.9% fee on the sales tax.

Here is a Washington POST article on it from last summer: https://www.washingtonpost.com/politics/courts_law/supreme-court-rules-that-states-may-require-online-retailers-to-collect-sales-taxes/2018/06/21/a24e0100-755e-11e8-b4b7-308400242c2e_story.html?utm_term=.606148f88e62

Also, an extract from an AP article dated 2 January 2019 and titled “3 things small business owners should know for 2019”:

Now that the new year is here, small business owners may find themselves trying to understand changes brought about by federal and state laws. …
Internet sales tax. The majority of states have enacted laws requiring retailers who sell in their states to collect sales tax even if they have no physical location like a store or distribution within the state. Most of the laws exempt retailers who have $100,000 or less in revenue and 200 or fewer transactions in a given state. Some of the laws are already in effect, while others go into effect during 2019. Some states have not acted yet.
Retailers can use software or services to help them collect tax, submit it to state tax authorities and compile required returns. The software is likely compatible with a retailer’s e-commerce system. Search online for more information,

If people drive to NJ or MA to shop, then they are physically in NJ or MA at the time of purchase.
As for the Quebeqois, the same principle applies, except they are dodging Canada’s duty.