Author Topic: Sales tax question,,  (Read 2741 times)

mart

  • Hero Member
  • *****
  • Posts: 19849
  • Karma: +122/-1
    • View Profile
Sales tax question,,
« on: September 10, 2011, 01:24:43 pm »
I was looking around on ebay and started to bid on an item in my state !!  Looked at the instructions and it said 8.25% sales tax on item and S&H !!  Now I don`t mind the in state sales tax on whatever I purchase but I am not going to pay a seller tax on my shipping charges !!  Would you ???? Have you run into this on ebay ???

ironlord1963

  • Hero Member
  • *****
  • Posts: 2330
  • Karma: +10/-0
    • View Profile
    • Ironlord's Treasure Chest
Re: Sales tax question,,
« Reply #1 on: September 10, 2011, 02:41:51 pm »
    I do know that legally you are suppose to charge sales tax when the sale is within your state.  I persoonally don't  I guess if I get in trouble I may own them a few buck.  If you click on the option of sales tax to your state, I think it includes the total of the sale, but That for sure does not seem right at all for sure.

CuriousCollector

  • Sr. Member
  • ****
  • Posts: 353
  • Karma: +2/-0
    • View Profile
Re: Sales tax question,,
« Reply #2 on: September 10, 2011, 08:21:10 pm »
It depends on the laws of the state.  In mine (Georgia) you charge taxes on shipping. 

Oceans64

  • Hero Member
  • *****
  • Posts: 1427
  • Karma: +5/-0
    • View Profile
Re: Sales tax question,,
« Reply #3 on: September 11, 2011, 08:41:11 am »
Think CC is correct. I'm just guessing but since the S&H transaction could be considered a service, the state collects taxes. 
"In times like these, it is helpful to remember that there have always been times like these." — Paul Harvey

mart

  • Hero Member
  • *****
  • Posts: 19849
  • Karma: +122/-1
    • View Profile
Re: Sales tax question,,
« Reply #4 on: September 11, 2011, 09:24:57 am »
Yes but the shipping charges go to the US postal service which is federal !!  That would be like going to the post office to buy a stamp and the USP employee charges a tax for handing it to you which they keep !!  You know that a seller  is not going to give the USP extra money they make for taxing something paid to the federal govt. !! 

CuriousCollector

  • Sr. Member
  • ****
  • Posts: 353
  • Karma: +2/-0
    • View Profile
Re: Sales tax question,,
« Reply #5 on: September 11, 2011, 11:24:35 am »
Not sure I follow your thinking.  The tax is on the total amount of the transaction, which happens to include shipping.  Perhaps it's better to think of a tax on shipping, not as a tax on a service (shipping), but as a tax on an item for sale (postage). 

Even so, some states require that you pay taxes on services, too!

mart

  • Hero Member
  • *****
  • Posts: 19849
  • Karma: +122/-1
    • View Profile
Re: Sales tax question,,
« Reply #6 on: September 11, 2011, 07:16:13 pm »
But that would be a handling charge !! They only charge actual shipping by USPS rates !! No handling charge !!  As far as I know Texas doesn`t have a tax on services or if they do it is in certain catagories !!  I will check more tomorrow !! 

rockandrollrods

  • Sr. Member
  • ****
  • Posts: 387
  • Karma: +5/-2
    • View Profile
    • My Biz
Re: Sales tax question,,
« Reply #7 on: September 13, 2011, 01:21:28 am »
I'm from California and I could find nothing to indicate that I had to pay the State Board of Equalization sales tax on freight. So I don't charge sales tax on freight. On the item, yes, but not on the freight. I know that it depends on the state though.
Take every price I say with a grain of salt...