Discussion in 'Coin Chat' started by Hiddendragon, May 24, 2022.
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Ebay does the same thing in a number of states, including mine, where they aren't supposed to. It is completely worthwhile to call them and seek a refund of those charges. You will need to make a list of the item numbers and give those to the customer service agent you get. Let them know the state you are in and the state law that exempts coin sales or rare coins (or however IL puts it) from state sales tax. I had so many item numbers for a couple of years the first time I addressed this that they just referred it up the line and eventually I got a nice refund of all those years transactions. What bothers me is it doesn't stop, I still have to call in to get the refund. But hey, at least we can get the money back.
I have noticed they are applying sales tax to the shipping, not sure when that started but it caught my attention recently. The tax is 6% of the shipping cost, that's Michigan's rate.
Perhaps delivery of goods is a service specifically taxed in Michigan and IL. In my state delivery charges are considered part of the sales transaction proceeds. Therefore would be taxed at the same rate as the item being shipped/delivered. In this case the shipping charges would also be exempt because the item being shipped is exempt.
I don't know for sure if it's supposed to be taxed, i just know they're doing it. Maybe it's just a money grab, maybe it's an honest mistake, idk.
I am fairly certain it is not a money grab. Any money collected from a customer described as a sales tax must be remitted to the State whether the money collected was a proper tax or not.
They are more afraid of erring on the side of not taxing something and having the states go after them than upsetting a few individual buyers. That is the main reason. I doubt Ebay keeps any of the money, they simply do not want the risk they might have to pay if they don't collect, which they view as a higher risk than you being upset, so they program it conservatively.
If memory serves me correct, there were several states that amended their sales tax code during the pandemic to expand their taxable service to include delivery services. Mostly an effort to capture Doordash, Grubhub, Uber Eats and etc.
Sure, but I am just commenting on how companies perceive this issue. If I do not collect the sales tax from the consumer I owe it, whereas if I collect it and remit to the state most consumers do not notice and I have zero risk of paying the tax in the future. So, most companies frankly overcharge sales tax, since they only really have the risk of the state auditing them and assessing tax on one side, and almost zero risk they will have anything negative from overcharging taxes. I have seen the state audits, the state might acknowledge you did not need to charge sales tax for X, but they never make any attempt to refund it back to consumers, and do not assess fees on the company for doing so. They are fat and happy. It is always up to the consumer to fight to minimize sales taxes unfortunately, the state and companies have every incentive to not minimize them for you.
The two examples presented in previous posts, one from Michigan and the other from Illinois, exempted the coin from tax and only charged tax on the shipping.
This is an interesting observation. It does seem like the tax might be on shipping. eBay has historically treated shipping charges the same as the item price when it comes to fees to try to encourage free shipping.
This sounds like eBay. It's the same reason that they ban selling coins from Cuba even if they are made in the U.S. Easier just to ban them all and not have to worry about it.
In a cup-half-full sense, I no longer have to collect and remit sales tax for my own state, Florida, where each of 67 counties has its own sales tax rate (and yes, shipping is taxable).
In addition, some types of coins are taxed in Florida, others not. Even that isn't all. Invoices above a certain dollar amount for certain classes are not taxed.
Multiply this madness times 50 for eBay, just for the USA, and you begin to get a sense of the problem.
Oh, no doubt. I commiserate with Ebay. Its a freaking mess, sales tax in the US both in terms of every single state having myriad different rules and interpretations of said rules, but sales tax districts being so myriad. I have no problem with sales and use taxes, but the states should be required to establish more formal, uniform rules if you are going to make nationwide sellers enforce them. That is the problem with overturning Quill.
And the SSUTA only plays lip service in solving the problem.
Actually they probably do keep a small amount. Here in Indiana the merchant collecting a remitting the tax is allowed to keep a percentage to compensate them. I would not be surprised if other states have a similar set up. In which case ebay gets to keep a percentage of all the sales tax they collect.
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