mildreds
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posted on February 15, 2001 05:15:07 PM
Can an individual state require Ebay sellers to collect their sales tax no matter where the buyer lives???
I live in Minnesota, I thought I only had to charge sales tax to MN residents not any other state.
Has there been a recent change????
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chum
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posted on February 15, 2001 05:31:14 PM
Hi,
I only charge sales tax for items sold in my home state. You dont charge for out of state sales I was told when I started in the mail order business. Hope this helps!
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MAH645
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posted on February 15, 2001 06:12:55 PM
Taxes are charged to home state only.
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kenlee
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posted on February 15, 2001 06:30:41 PM
I'm in MN also. My understanding is that if we ship to an address in MN, we must collect the tax. If we ship to addresses outside MN, we usually do not need to collect tax.
The exception would be if we had a physical address we did business from in another state.
So if I live in MN, but also have a lake place in WI,
AND
IF I sometimes do business from the lake place, then I would have to collect tax for shipments to WI addresses as well as MN addresses.
Course I could be wrong. Best ask your tax pro.
kenlee! and acmall on ebay, but NOT kenlee
[ edited by kenlee on Feb 15, 2001 06:32 PM ]
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mzalez
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posted on February 15, 2001 07:14:15 PM
Louisiana has a new law for Internet purchases. When you file your state of LA taxes this year, you must report the amount of out-of-state, tax-free purchases you made over the Internet. You will then owe state sales taxes on that amount to Lousiana.
I'm interested to see how this works out.
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sirpaladin
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posted on February 15, 2001 07:28:18 PM
I sometimes wonder if a seller is actually required to collect sales tax for a transaction. If a seller adds sales tax to the final amount due, would it be reasonable for me (the bidder) to request their federal tax id#?
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vargas
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posted on February 15, 2001 07:39:28 PM
sirpaladin
You would want their STATE tax ID#, which in many states, is different from the federal tax ID number.
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kenlee
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posted on February 15, 2001 07:44:23 PM
Sir Paladin;
I've never been asked for my state tax id, but would give it yo a buyer upon request I guess.
Actually, even tho I'm a small seller, I'm surprised at how few in-state sales I've made thru ebay.
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anothertreasure
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posted on February 16, 2001 04:32:52 AM
In MA it's a sales and use tax. If you buy it in another state you're supposed to pay the tax on it - I don't think anyone ever does that.
Also in MA - if you don't have a Federal ID #, you're sales tax ID is your SS#. Not something you want blasted around the internet.
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mrlatenite
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posted on February 16, 2001 07:13:40 AM
[ edited by mrlatenite on Mar 5, 2001 11:52 AM ]
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harmonygrove
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posted on February 16, 2001 07:26:07 AM
Great topic!!
We had an Ebay sale recently that was to a buyer out of our home state of Georgia. The client was going to be in Georgia on an "antique hunting" vacation and wanted to save the money for shipping (it was a large desk). They balked when I told them I had to charge tax since it would be treated just like a purchase from our store. Was this correct???
Hope we have some tax pros out there.
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spuddy98
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posted on February 16, 2001 08:13:28 AM
Here in New York state you have to pay tax on your out of state purchases as well. A few year back we had a local county tax collector go to a shopping mall in PA and record the license plates of NY vehicles. He was almost lynched. I don't recall the outcome but it was made clear to him that if he continued to persue this matter (even though it is 'the law'" he would not have a job very long and not be welcome here in our county. I have also seen stories about this matter on TV for shoppers that leave NYC and shop in NJ as well as those that Shop in Canada from the Buffalo Area. I don't expect anything to change to soon as getting 50 states to cooperate on this matter is unthinkable. You realize the ultimate solution is to require all mail order companies to collect tax for the purchasers state of residence. Not gonna happen. If you have read your constitution the United States is formed as a Republic leaving powers to the states. sending items to another state is like sending to another country. So unless they begin to require us to declare the contents and value of packages and have customs in every state to collect taxes you won't see any tax collection on interstate commerce.
Prepare for the worst but hope for the best!! Spuddy98
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