[stevebrot]

I'm guessing that most "ebay" sellers that charge sales tax on out-of-state transactions are not actually registered, and are not forwarding the "tax" collected to the appropriate states.

eBay acts as the agent in the transaction and is responsible for collecting the tax here in Washington. It is added during checkout and the seller is none-the-wiser. Jurisdiction in this case is aided by the fact that eBay has physical presence here in the form of server-farm infrastructure, though Washington does not actually consider such at present.

As for the tax itself, it is a "use" tax assessed on the sale amount. If I buy something in Oregon (a mere seven miles away) and bring it home with me, theory is that I owe tax, but only if the state can prove I have used the item in Washington. If I mail the item, unused, to someone outside Washington, no tax should be owed, at least in theory. I am unaware of anyone attempting a refund for in-state purchases mailed as gifts.


Steve

[jack002]

It must be terrible to have to pay taxes to pay for the country you live in...

Taxes are like water. Too much and you drown, too little and you die of dehydration. The ones taking the tax can either be angels or the devil. There is plenty to show one or the other.

[hjoseph7]

If you are not getting "free shipping", sometimes it does not pay to buy online anymore, especially with the more expensive items. This is exactly what the brick and mortar retailers wanted...

[steamloco76]

My biggest gripe regards my state, Pennsylvania, which requires sales tax to be collected on shipping charges too. You buy a $500 lens and pay $20 shipping with tax adding $31.20 to the total. If I lived in Pittsburgh or Philadelphia the tax total would add $41.60.

[Rondec]

If you are not getting "free shipping", sometimes it does not pay to buy online anymore, especially with the more expensive items. This is exactly what the brick and mortar retailers wanted...

The thing is that if you live in a rural part of the country, it doesn't really shift the equation. I don't have any camera stores nearby -- not even a Best Buy or a big box store like that.

As far as taxes overall go, I don't think anyone enjoys paying them, but there are plenty of things we appreciate the states providing that cost money.

[Camaro5]

I live in Nevada and eBay started collecting sales tax on Oct. 1st. Adorama is about the only online retailer left (that I use) that doesn't collect sales tax, but I expect that to change in 2020.

[reh321]

1) Whether a state can charge sales tax on an out-of-state transaction has to do with the concepts of sovereignty and jurisdiction. Since states are territorial governments (unlike, for example, the United States and the Vatican), their ability to exercise jurisdiction as sovereigns depends on "physical presence" within the state. In this case, it has to do with jurisdiction not over the transaction itself, but over the parties to the transaction. So if the purchaser is within a state that charges sales tax, then the state can tax him (even if they can't tax the seller), regardless of where the transaction occurs.

2) In order to collect sales tax on internet transactions, the seller would normally have to register with the taxing authority in each state in which he does business. I'm guessing that most "ebay" sellers that charge sales tax on out-of-state transactions are not actually registered, and are not forwarding the "tax" collected to the appropriate states. I'd want to see the sales tax registration certificate if they propose to charge a tax. Otherwise, it's wire fraud, a federal felony.

Ebay says that they collect the amount of the tax on behalf of the state. If you don't think they send it to your state, then ask your state, sue eBay, or don't use eBay. It is your choice. Complaining about them here is of no use to anyone.

[Not a Number]

I just purchased a lens on eBay. The tax collected from my PayPal account went to eBay, not the seller. There were two transactions on my PayPal account.

[reduno]

There were two transactions on my PayPal account.

That's the way is appears on the receipt here in NY state too. I try and wait for an e-Bay Bucks deal these days, so hopefully I can get the tax back. It will be interesting to see if the state lowers the sales and use rate on our income taxes next year.

[nguyenlm]

I understand collecting taxes on new goods, but when I buy something Used from an out of state seller it should be a private sale untaxed. But oh well.

[Reality_Check]

I understand collecting taxes on new goods, but when I buy something Used from an out of state seller it should be a private sale untaxed. But oh well.

100% agree. The fact that our governments (local, state, federal) think it is OK to collect sales tax multiple times on one item every time it is sold just goes to show how out of hand it really become.

Grateful for these forums :-)