Tax law or what?!?

[81cutlass]

Bringing this back up.

I bought a few $10-$30 items off ebay a few weeks ago

Noticed I had $1-$4 charges in my paypal account recently

Now if you buy something off ebay, say from Bob's Junk G body parts for $20, ebay will see Bob didn't charge you sales tax and proactively charge you your states sales tax.

It continues.....

 

[TURNA]

Bringing this back up.

I bought a few $10-$30 items off ebay a few weeks ago

Noticed I had $1-$4 charges in my paypal account recently

Now if you buy something off ebay, say from Bob's Junk G body parts for $20, ebay will see Bob didn't charge you sales tax and proactively charge you your states sales tax.

It continues.....

WTF is that even allowed to take the cash with no notice????

Or maybe I should say HOW is that legal???

 

[Bonnewagon]

charge you your states sales tax.

I'm not seeing that- yet- YIKES what is next?!? So if everyone is charging sales tax, and even grabbing it after the transaction, then why is NY still demanding "sales or use" tax on line #59 of IT-201 based on income?!? If I put a big fat zero will I trigger an audit?

 

[81cutlass]

Not sure who is getting my tax dollars.

Doesn't define if its my state, Iowa, or the purchase state.

So here is what is interesting, from some random internet law blog. We are all internet lawyers right?

If you buy a $20 item from Bob's Junk G body parts from his personal website, Bob'sJunkGbodyParts.net, and he sells less than $100,000 of items or less than 200 transactions a year, you don't get charged sales tax.

But if you buy s $20 item from Bob's Junk G body parts ebay store, you will get hit with the state sales tax. Ebay, Amazon, ect. is a facilitator and any dollar spend through them is taxable.

https://www.davisbrownlaw.com/davis-brown-tax-law-blog-article.aspx?id=2566&Understanding+Iowa

 

[TURNA]

Ask 69hurstolds he seems to have the answers

https://gbodyforum.com/threads/rockauto-com-discount-code-for-parts-more-expires-july-1-2019.71655/

 

[81cutlass]

I'm not surprised, it should have been taxed from day one. I, and most everyone else have been taking advantage of the 6% or more discount for the last decade buying online. If they would have started taxing online sales from day 1, nobody would have cared and we would have more brick and morter stores like there was 20 years ago.

Now we are in the annoying phase where the small online sellers, kicked the big brick and morter stores out of business because they could beat the prices, the small online sellers got big, and now the discount is gone so we are where we were 15 years ago but have to wait 3 days for everything. Nobody stocks anything anymore in the brick and morter stores that are still around to keep inventories lean and costs low, so you might as well just buy it online from your house so you don't have to deal with the moron at the parts store.

Blah.

I'm fine paying the tax, it's just weird getting used to this new status quo.

 

[ItsnotaGN]

Here's the thing. if retailer X is not charging you your state's tax and you buy a substantial amount of items from retailer X over the year I believe they are required to send a form to your state informing them of your purchases so you can be taxed accordingly.

 

[TURNA]

Save your receipts for when they tax you twice

once when you buy it

once at the end of the year

once on April 15th

once when you get paid

etc.............

 

[69hurstolds]

Ask 69hurstolds he seems to have the answers

https://gbodyforum.com/threads/rockauto-com-discount-code-for-parts-more-expires-july-1-2019.71655/

I don't have the answers. Your state has the answers. I'm just familiar with the South Dakota vs. Wayfair case that got all this stuff to start falling off a cliff to begin with. I followed it intently as to ensure to understand the outcome of how you just have to meet a minimum sales in number and dollar amount and you're then required to collect taxes. And you no longer have to have a foothold in the state you sell in. If you sell over 300 items on ebay for example (only 100 in NY), or $300,000 in value per year, you have to register in the delivery state and collect taxes for that state. If you don't have to collect tax because either the state has no sales tax or you don't meet the minimum threshold, the consumer is required to pay a "use" tax to their home state, as applicable. I don't agree with it, but nobody is left to appeal to. I gotta pay my taxes too. States vary slightly in how they enforce these tax collections, so you need to read and understand how all that works for your state. A state CANNOT tax you their home state taxes unless you actually live in that state. They must tax you as to where they send the item or conduct the service.

Here's a place you can start to look how it affects your state, if it does at all.

https://www.salestaxinstitute.com/resources/remote-seller-nexus-chart

 

[69hurstolds]

What's worse, is you don't have to be THE owner of the item. Even if you just handle the money for another party, like if you were just the billing location, you're required to collect the taxes if you fit the criteria. It's kinda vague, but SOMEONE will pay those taxes.