EBay Sales Tax????

[Alan Klein]

I have sold cars on eBay

My state collects tax from buyer when obtaining title and plates

Cars have to be registered. So you can't avoid sales tax. Most other things aren't registered. Maybe a boat. In any case, some people lie as to what they paid for the car to reduce the sales tax owed.

[Tin Can]

They now use set categories

No need for valuation

No lying needed

Cars have to be registered. So you can't avoid sales tax. Most other things aren't registered. Maybe a boat. In any case, some people lie as to what they paid for the car to reduce the sales tax owed.

[drj52]

I assume that's because eBay collects the sales tax for them. Frankly, it;s easier for the states as well. They don't have to deal with thousands of extra entities. Plus it assures they get the sales tax. Individuals won't bother to collect or pay it. Also, how does let's say the state of New Jersey collects sales tax from a seller in California who sold a $100 item to a guy in NJ? This way they get the tax once a month or quarterly from eBay for all sellers around the world for sales to NJ buyers. It's a sweet deal for the states.

It’s such a good deal for the states that eBay gets a small % from some of them for doing it.

[drj52]

I have sold cars on eBay

My state collects tax from buyer when obtaining title and plates

Payment for cars isn’t done through eBay, so they wouldn’t be involved in collecting the taxes.

[Alan Klein]

It’s such a good deal for the states that eBay gets a small % from some of them for doing it.

It's worth it for the states. How would they get let's say $7 sales tax owed on a $100 sale? First off, they wouldn't know about it. Second, they'd have to subpoena the seller in another state. For $7? They could go after the buyer in their state, BUt he could report it on his state income taxes the following year. They'd have to track each and every purchase made of items sold to state residents buying stuff from out of state. AN Impossibility. That's why they've been going after big retailers and middlemen like B&H, Amazon, and eBay.