posted on October 30, 2001 05:06:33 AM
I think you only need to charge it to anyone who buys from you that "resides" in your state.I am from Canada and that is somewhat how it works here but we have another tax also.You might want to get a license(retail sellers) first though.Then you can be in the tiny percentage that actually have one and send in tax.
posted on October 30, 2001 05:24:01 AM
Generally, if you are operating a "business", then you need to be charging sales tax as defined by the relevant state law. And the IRS defines being in business as something you regularly engage in that makes you money.
As a practical matter, you only really need to do this when you have a vendor who insists only to sell to businesses and demands proof that you are a business. A sales tax permit, resale license, etc. is usually used to prove that.
I believe that most state laws require you to charge sales tax on anything you sell to anyone under any circumstance (i.e. garage sales on up). But no one does that realistically.
posted on October 30, 2001 05:30:51 AM
For the correct answer, everyone should contact their individual state sales tax office for advice. Each state can be different. Ask their also and they can advise or direct you to the proper place about local taxes.
[ edited by Coonr on Oct 30, 2001 05:31 AM ]
posted on October 30, 2001 05:32:21 AM
OK, thanks everyone! For now I'm really doing this on a small scale. . .about 5 auctions at a time. . . not sure exactly where I'm going. But if it starts to become a regular source of income I'll start doing that. . . I'm keeping records of everything just in case.
posted on October 30, 2001 01:51:43 PM
State sales tax laws are pretty consistent on who has to pay. Any sale not specifically exempted is subject to tax. The seller is responsible for payment of the tax when the buyer is within seller's state. The buyer is responsible for payment of the tax when the seller is out of state.
Enforcing such laws is difficult when neither party is a business.
