Seller charging my state's sales tax?-UPDATE

Boylen33 · Jun 9, 2011

I won an auction for a box of Bowman Jumbo for $150+9.99 shipping. When I went to pay, I saw on the invoice where the seller is charging $12.50 for Alabama sales tax (seller is in California). The seller can only charge sales tax if shipping within their own state, right?

wolfmanalfredo · Jun 9, 2011

Re: Seller charging my state's sales tax?

Yea, shouldn't be allowed to charge tax outside of their own state if I'm not mistaken. Seller trying to pull a fast one on you, and snag a few more bucks

Boylen33 · Jun 9, 2011

Re: Seller charging my state's sales tax?

Yeah, that's what I figured. Went back and reread the description and it doesn't mention sales tax anywhere.

AndruwHRJones · Jun 9, 2011

Re: Seller charging my state's sales tax?

Actually, ebay has no rules specifically. It is whatever the state laws allow or want. I didn't bother looking up the CA state law on this, but here is what ebay says:

Important: Please contact a tax professional to determine whether you need to charge sales tax on your eBay sales. eBay can't provide tax advice. Also, we can't guarantee that our sales tax features will meet all tax requirements.

You can use the eBay tax table to specify a sales tax rate for each U.S. state in which you're required to charge sales tax. You can also choose to charge tax on shipping and handling if that is required by law.

I would probably find out what the CA state law says before doing anything else. With that said, I assume most only charge tax in their own state.

Bob Loblaw · Jun 9, 2011

Re: Seller charging my state's sales tax?

Businesses can charge sales tax if they have a "presence" in that particular state.

I suspect that your California seller does not have an Alabama presence.

Your best move at this point -- initially question it - pay the tax - then if you don't get a response you like, continue to question it, and if you still aren't happy, drop a neg bomb and file a complaint with the Bay.

cmnkb8 · Jun 9, 2011

Re: Seller charging my state's sales tax?

Ask him to forward you a copy of his Alabama Tax ID/Certificate to prove he has a business presence in your state. If he can't do that, then he has no authority to collect sales tax from you.

ccouch (Chad) · Jun 9, 2011

Re: Seller charging my state's sales tax?

Jeff N. said:
Businesses can charge sales tax if they have a "presence" in that particular state.

I suspect that your California seller does not have an Alabama presence.

Your best move at this point -- initially question it - pay the tax - then if you don't get a response you like, continue to question it, and if you still aren't happy, drop a neg bomb and file a complaint with the Bay.

Agreed. It is absolutely possible that a California seller can be required to collect and remit sales tax in another state, but I'd not think it to be very likely in this situation. It is certainly possible though.

Do ask him about how exactly he has the requirement to collect and remit Alabama sales tax. And ask him how he got the rate. Alabama's sales tax rate is 4% (I think), and I know that some Alabama municipalities charge sales tax as well to increase that percentage.

And if you get the feeling that he's trying to pull one over on you, remind him of the substantial legal issues that arise from collecting tax on behalf of a state government and not remitting it to the state.

sportscardtheory · Jun 9, 2011

Re: Seller charging my state's sales tax?

There is no way it didn't say anywhere in the listing that you would have to pay sales tax.

ccouch (Chad) · Jun 9, 2011

Re: Seller charging my state's sales tax?

sportscardtheory said:
There is no way it didn't say anywhere in the listing that you would have to pay sales tax.

http://cgi.ebay.com/2011-Bowman-HTA...0735443124?pt=US_Baseball&hash=item1c1c64a8b4

If the above link is the auction in question, then you are wrong.

sportscardtheory · Jun 9, 2011

Re: Seller charging my state's sales tax?

ccouch (Chad) said:
sportscardtheory said:

There is no way it didn't say anywhere in the listing that you would have to pay sales tax.

Click to expand...

http://cgi.ebay.com/2011-Bowman-HTA...0735443124?pt=US_Baseball&hash=item1c1c64a8b4

If the above link is the auction in question, then you are wrong.

"Seller charges sales tax for items shipped to: CA *(8.75%).
* Tax applies to subtotal + S&H for these states only"

It says only to California, so then it is very strange that it would even attempt to make the buyer pay it if they are not in CA.

Boylen33 · Jun 9, 2011

Re: Seller charging my state's sales tax?

That is the auction. I see now under "Shipping and payments" where it says they charge sales tax if shipping to California. I think they are just trying to have me cover their Ebay fees in this situation. I emailed the seller to inquire. I will let you know what he/she says.

ccouch (Chad) · Jun 9, 2011

Re: Seller charging my state's sales tax?

sportscardtheory said:
ccouch (Chad) said:

sportscardtheory said:

There is no way it didn't say anywhere in the listing that you would have to pay sales tax.

Click to expand...

http://cgi.ebay.com/2011-Bowman-HTA...0735443124?pt=US_Baseball&hash=item1c1c64a8b4

If the above link is the auction in question, then you are wrong.

Click to expand...

"Seller charges sales tax for items shipped to: CA *(8.75%).
* Tax applies to subtotal + S&H for these states only"

It says only to California, so then it is very strange that it would even attempt to make the buyer pay it if they are not in CA.

Whoops -- I missed that because I didn't click on the "See All Details" link. Sorry about that.

This now looks like a case of a seller mistakenly trying to collect sales tax on a shipment to Alabama. But I'm with you -- I'm not sure why the invoicing system isn't picking up on the fact that the buyer is in Alabama and not California.

SamHell · Jun 9, 2011

Re: Seller charging my state's sales tax?

Bottom of the page under payment details.
Seller's payment instructions
PLEASE BE AWARE, YOUR LOCAL SALES TAX WILL WILL BE CHARGED. We hold a reseller's permit in almost all states with the exception of AK, HI, OK, and AR.

ccouch (Chad) · Jun 9, 2011

Re: Seller charging my state's sales tax?

SamHell said:
Bottom of the page under payment details.
Seller's payment instructions
PLEASE BE AWARE, YOUR LOCAL SALES TAX WILL WILL BE CHARGED. We hold a reseller's permit in almost all states with the exception of AK, HI, OK, and AR.

I'm an idiot. I didn't see that either. Anybody know where I can find a refresher course in reading comprehension??

Boylen33 · Jun 9, 2011

Re: Seller charging my state's sales tax?

Well, I guess it's my fault then for not checking out all the payment details before I bid. It's just that I've never run into this before, at least not when buying outside of the state. I guess I'll just have to pay the tax and move on.

ChasHawk · Jun 9, 2011

Re: Seller charging my state's sales tax?

You have every right to ask for their AL reseller's permit

leatherman · Jun 9, 2011

Re: Seller charging my state's sales tax?

Expect to pay sales tax on most items purchased over the internet in the next 10 years (maybe sooner). We just had our Georgia Sales & Use Tax seminar for the year, and they are specifically going after e-commerce to make up some of the huge tax shortfalls.

Bob Loblaw · Jun 9, 2011

Re: Seller charging my state's sales tax?

SamHell said:
Bottom of the page under payment details.
Seller's payment instructions
PLEASE BE AWARE, YOUR LOCAL SALES TAX WILL WILL BE CHARGED. We hold a reseller's permit in almost all states with the exception of AK, HI, OK, and AR.

Ask for a copy of same.

RZimm11 · Jun 9, 2011

Re: Seller charging my state's sales tax?

Apparently this is going to be a pretty big thing, with taxes on e-commerce. They are actually playing commercials on the radio regarding the payment of internet taxes in PA, and how it hurts local businesses.

cmnkb8 · Jun 9, 2011

Re: Seller charging my state's sales tax?

So, did the seller ever provide a copy of their tax certificate for Alabama?

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