2019 New taxes to some states

Ela_Hara wrote:

So – if I understand this correctly….

If I’M the eBay Seller and I’m selling to Tig3r, the buyer who lives in Washington, then I don’t pay taxes and eBay collects the taxes from Tig3r and her account.

And conversely, if I’M the Buyer purchasing an eBay item from Tig3r, a seller who lives in Washington, then eBay will collect the taxes from me and my account.

However, if I sell or buy an eBay item with someone who lives in a State that is not collecting internet retail taxes, then eBay will not collect taxes from either one of us.

Does this sound correct?

I think the second one is not correct. If it’s all based on buyer location, then eBay will take the tax your state wants, not the seller’s state of Washington, if your state has internet sales tax.

I think I am getting this. The tax the seller pays is income tax, with those lovely end-of-year IRS forms we all love. That’s why this new tax thing is all based on the buyer’s location. eBay doing this removes the work the seller was supposed to be doing of collecting the taxes from buyers and giving the payments to each freaking state their customers live in.

So now, if it was not already happening, every Windstone eBay test paint is going to have a tax added on to the winner’s bill, according to the winner’s state sales tax laws. Windstone won’t even have to do anything about it. It will have to be something bidders now consider, especially when the bids go very high.

For Windstone store items, I don’t know. I remember NY had passed a law years ago that when filing state taxes, you had to disclose the total amount you paid in online purchases made ANYWHERE in the country, so that NY could collect the appropriate amount of sales tax from you. Ha. Ha ha ha ha. I am so sure people were all so honest when doing that.

GardenNinja wrote:

Lisa Z wrote:

I always thought sales taxes are based on where the seller is located, not the buyer. That’s why people around me drive to NJ or MA to shop. Heck, that’s why Quebeqois zoom straight through New York and go to NJ to shop. They have lower sales taxes than where I am. According to the link Ela_Hara provided, eBay is going to charge sales tax based on where the buyer is located. Did I understand that correctly?

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.

Canadians are allowed to make a certain amount of duty-free purchases each year when they come into the US. They just chose not to do it to the state closest to the border! Saving those few extra dollars. When I’ve stopped at rest stops between NJ and NY, I’ve seen vehicles with Canadian plates jammed full of Costco bags so that they can’t even see out the back window. There’s no way to hide that when crossing. lol

tig3r06 wrote:

I just really wanted to give a heads up cuz it could add quite a bit when the bidding goes high and so buyers/sellers know about it.

Yup. It will probably be a nasty surprise for some buyers who don’t hear about it. I hope it doesn’t lead to people backing out of purchases because they bid the most they could afford without considering sales tax.