Paying taxes on horns off ebay

[Uncle Buck]

I think this is not the ideal forum for getting/giving advice on tax issues. For one thing, sales and use tax is entirely a state issue, so the laws vary from state to state. At least one statement from this thread, "Private sales between citizens are not taxed." is completely untrue. As a general rule (although some states may be different), sales and use tax laws do not differentiate between "commercial" and "private" sellers.

If you want a good answer, contact your state tax or revenue agency. All you'll get here is speculation, maybe mixed in with a bit of truth here and there (but impossible to know when).

[MaryAnn]

Couple comments...
1. ditto on the 941 euph. It is almost never necessary to buy new.
2. if the seller has not responded to either phone or email, raise the "suspicious flag."

MA

[Paul S]

I do agree that the best thing to do is to check with your seller and also with your local taxation code. Every state is indeed different.

I think many of us might be shocked to actually know what our state taxation and internet sales laws are.

As of this May 2005, Ohio actually will have a law making it illegal to conduct an online auction unless you have an auctioneer’s license from the state. As written, this also applies to selling on Ebay from Ohio and is being altered, but only to grant a small exception if you sell something on Ebay you did not purchase with intent to resell there. This will be a wake up call and might be enjoyable to watch some legislators do some quick rewrites when the phones ring in May.

Ohio also does expect individual Ohio residents to collect sales tax for an in-Ohio sale and report it for any sale (internet included) no matter how small the sale, even if the seller or the buyer only has a vacation home or any kind of business interest in Ohio at all, and resides primarily outside Ohio. There are sections about paying the primary resident state tax first and then the difference if greater to Ohio and it does get deeper and deeper from there.

I do have a business here in Ohio and although it is agricultural based with certain exemptions, I still have to turn in my taxation forms, signed exemption certificates from every customer, and I receive taxation law updates from the state.

I still do stand by the fact that currently, if you are a non-Ohio resident and purchase an item from a seller in Ohio and have it shipped to a location outside Ohio you owe no tax in Ohio.

Your own state might want something from you though depending if the seller has any kind of business interest in your state too. Also if you do drive to pick it up in Ohio you are considered an over the counter customer and then liable for Ohio tax.

The talk of going to a national consumption tax is interesting but I can not imagine all of the states willing to give up any portion of their pies in that regard unless they think it will mean more for them from somewhere too. Since State rights take precedent, the Federal government will have to offer something really sweet to the States to get them to go along. I also think we are going to see more and more interest by states to find ways to get their portion of cross state (internet, catalog, telephone) sales in the coming years.

[Chuck(G)]

I think all states have what's called a "use tax", equal to the state sales tax.

Believe it or not, not all states have a sales tax. Oregon doesn't (and we don't pump our own gas, either). Income tax, however, is another matter...

Chuck "who can remember when California's 2% sales tax was a "temporary" measure"(G)

[Joe Baker]

Oh, so you ducks & beavers up there call that a state?
______________________________
Joe Baker, who'll take a sales tax over an income tax ANY day!

[Chuck(G)]

Oh, so you ducks & beavers up there call that a state?
______________________________
Joe Baker, who'll take a sales tax over an income tax ANY day!

Oh, c'mon! How can you cal yourself a state without being under the fallout from a genuine active volcano?

[Rick Denney]

Hello I am the father of a son who wants to purchase a euphonium.

Most states require you to pay "use tax" on things that you buy. When you buy in the state, the seller collects the tax for you and sends it to the state. That's what we call a "sales" tax.

Many states have exceptions for "occasional sales" that relieve, for example, someone operating a garage sale from collecting sales tax.

My thinking is this: If you don't tell them you bought something, how are they gonna know?

It's not an issue for the seller on ebay, unless he is required by your state to collect sales tax. That would be between him and the State of Arkansas, but it usually requires having a place of business in the state. He's already said he only collects sales tax from Ohio residents.

Rick "thinking that it's between you and the State of Arkansas" Denney

[corbasse]

I live in Viginia . .... They owner told me he would have to chrarge me the N.C. sales tax. A whopping 7% !!!!...

I'm moving there asap!! Over here it's 21%

[Paul S]

Oh, so you ducks & beavers up there call that a state?
______________________________
Joe Baker, who'll take a sales tax over an income tax ANY day!

Oh, c'mon! How can you cal yourself a state without being under the fallout from a genuine active volcano?

Luckily we in Ohio do still have our Southern Ohio coal power plants and Davis-Besse up North (when it is not corroding down its containment) to help get the same feeling...

(yes I know it is cooling tower condensation as I actually spent two years as a nuclear engineering major before coming to terms that kinetics, thermodynamics and I would never be best of buddies).

Ohio also makes for an enjoyable state where it was 60 degrees on Monday and snowing heavily and 12 degrees last night.

Paul, who does not mind taxes when the schools work, roads are driveable and it is safe to shop in the city after dark, Sidey

[TubaRay]

Paul, who does not mind taxes when the schools work, roads are driveable and it is safe to shop in the city after dark, Sidey

Do you know of such a place? I know places where it is safe to shop in the city after dark. The other items are much less plentiful.

[Captain Sousie]

Believe it or not, not all states have a sales tax. Oregon doesn't...Income tax, however, is another matter...

Same in Montana

[TMurphy]

Welcome to New Jersey....sales tax...income tax...but, like Oregon, you don't pump your own gas! (the only two states where that is illegal, by the way). We also don't have any volcanoes (but, if you've ever driven on thr NJ turnpike, past exits 13 and 14...you'll realize we don't need a volcano.)