Sales Tax

[Darth Sensei]

Attn Mods, I'm not sure if this belongs here or in Off Topic. Please feel free to move it if I'm in error.

I have a seller trying to charge me 6% sales tax because we both live in Michigan. This is a new seller with only a 2 feedback. Unfortunately I never saw the tax mentioned at the bottom of the auction page or I wouldn't have bid. I really despise extra fees such as inflated shipping.

I e-mailed him with:

Please provide a copy of your state license to collect sales tax. You can either fax me a copy to ***-***-**** Attn Dave , or e-mail me a scan of it.

As soon as I receive it, I'll be happy to finish the transaction via paypal.

They e-mailed me back: (I also asked to pick the item up as we live close)



That's the problem, I'm not a business, that's why I can't have people coming and going, I'm in a residential neighborhood. My sales tax is reported via my social security number as anyone who does business on the internet should do.

Is this true? Should I just pay? Can someone collect sales tax using their SS number? It's not a lot of money, but I despise paying it as I feel gouged.

Any help offered would be greatly appreciated.

[punkoffgirl]

I'd call your local branch of the IRS and ask them about it. Something doesn't sound right to me.

Okay, I looked it up, and found out this:
If he, as a seller, is required to file sales tax with the state, than he would have a sales tax number/certificiate/whatever you call it. If he doesn't have one, he doesn't have to pay the state sales tax. At that point, if you are a resident of the same state, you are then SUPPOSED to pay the state yourself, but I know hardly anyone ever does.

[Darth Sensei]

I'd call your local branch of the IRS and ask them about it. Something doesn't sound right to me.

I thought of that, but this is state tax, not federal. I suppose they could point me towards the correct agency.

Has anybody had this problem with something they bought?

[punkoffgirl]

http://www.michigan.gov/treasury/0,1607,7-121-1750-15477--,00.html

[Darth Sensei]

Thanks POG.

I sent him the link and here is the reply:

Sorry, I must be doing something wrong, I was told that I should report any
transaction I do online through my SSN. No problem, just send me payment for
the item and shipping.
Thanks!

[SoulBlazer]

Curious about trying to charge a tax -- is he trying to pick up extra money or was he just being really honest?

If it's the former, I guess you called his bluff. :) If it's the latter, he was nice enough to realize that almost no one on EBay shares his morales. :D

[Darth Sensei]

Curious about trying to charge a tax -- is he trying to pick up extra money or was he just being really honest?

If it's the former, I guess you called his bluff. :) If it's the latter, he was nice enough to realize that almost no one on EBay shares his morales. :D

I'd have to say more than likely the former. I've had this happen once before. A person asked me for tax on $500. As soon as I asked for their certificate they backed down.

I don't consider it morals as I feel we're all taxed half to death already.

[punkoffgirl]

Y'know, I've been thinking about this today and I've only come to one conclusion: the only time he would need his social security number to report anything as far as revenue services are concerned would be for income reasons, as in INCOME tax, but not sales tax. I wonder if maybe he's just gotten that confused..

[Sylentwulf]

Anyone who PROFITS more than $300 (or $400?) dollars in a single fiscal year, is responsible for reporting the income, and charging all applicable state sales tax on those sales.

That means almost ANYONE who sells on ebay needs to report it. ($300 is a pretty small amount)

[jonjandran]

Anyone who PROFITS more than $300 (or $400?) dollars in a single fiscal year, is responsible for reporting the income, and charging all applicable state sales tax on those sales.

That means almost ANYONE who sells on ebay needs to report it. ($300 is a pretty small amount)

It's been changed to $600.00 a couple of years ago.

And you never have to charge SALES tax for out of state sales.. And in order to charge sales tax you must have a legit business and license. And the sales tax is determined by the county in which you live.

And you can't charge somebody for state tax. That is different than sales tax and it is your personal responsibility and can't be passed on to the consumer.

[Flack]

My guess is, the guy has seen other auctions on eBay where it says "buyers in the same state must pay sales tax" and thought he would do the same on his auction, either because he thought he was supposed to, or because he was just trying to make the extra money.

People are always looking for make a few extra cents on eBay. Of course, maybe I'm just mad because the CDs I paid $5 priority mail for just arrived with $0.79 postage stamped on the front of the package. Grr.

Flack