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Thread: Does the new eBay State Tax affect you?

  1. #1
    Heat Guy WCPO Agent Lync's Avatar
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    Default Does the new eBay State Tax affect you?

    Beginning this year eBay has now been required to calculate state taxes from the sale of items by buyers and sellers alike according to the following tax table:

    https://www.ebay.com/help/selling/fe...harges?id=4121

    My state, New York, jumped on this cash-grab this month and I feel it is a matter of time before many other states follow suite.

    I've used eBay for well over a decade and at this point only use it for acquiring import games from Japan, where this tax will now also apply, so even at an international level this takes place.

    As necessary as eBay has been for the various corners of hobbies, I feel like the affect of this additional fee will be especially more than just a ripple in the interest of video games. I genuinely wonder if a shift will be made off-line, back toward the local venues, word-of-mouth; and the changes this may have as people shy away from eBay as a resource.

    I'm curious if anyone as a seller or buyer has any trepidation about this - Will it change what you buy/sell, how much, or perhaps not at all?
    With states placing the squeeze on eBay and its sellers/buyers, will the paradigm move elsewhere?

    I personally feel like hitting the brakes on eBay... which hurts because it is not a reflection on their part, but that my state has made a gesture that says that my tax dollars are not enough, they also want a piece in my spending of video games.

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    Mega Driver Hedgehog-in-TrainingWCPO Agent Gryson's Avatar
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    People were already willing to pay the 13% eBay/PayPal fees (built into prices), so it probably won't make a difference. There simply isn't a good competitor for eBay when it comes to collectibles.

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    The Future Is Yesterday Hedgehog-in-TrainingRaging in the Streets SegataS's Avatar
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    My state started online taxes a couple years ago but it has not affected eBay purchases but has for Amazon. My state is not on that list either.



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    Master of Shinobi Zz Badnusty's Avatar
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    Quote Originally Posted by Lync View Post
    I'm curious if anyone as a seller or buyer has any trepidation about this - Will it change what you buy/sell, how much, or perhaps not at all?
    With states placing the squeeze on eBay and its sellers/buyers, will the paradigm move elsewhere?

    I personally feel like hitting the brakes on eBay... which hurts because it is not a reflection on their part, but that my state has made a gesture that says that my tax dollars are not enough, they also want a piece in my spending of video games.
    My state of Pennsylvania has required that sellers collect sales tax on all sales (and yes shipping charges are taxable), unless the seller can document that the sales tax is paid to another state. Obviously this is burdensome for the seller. I've remitted 6% PA Sales tax for all of my eBay sales throughout the past 2.5 years - no matter where they are shipped to.

    This year I got hit hard by federal tax. From roughly $12,000 in taxable sales I pocketed roughly $7800 after taxes and fees (including shipping expenses).
    I'd already decided that the effort and time involved to manage an eBay store is simply not worth it. I'm earning peanuts per hour of photographing, describing, listing and managing items, then the time to answer questions, package items, take to post office, etc ...then file taxes quarterly for just my state, then the impact on my federal return, etc.

    eBay is pushing the responsibility to file for these 13 other states onto the seller. It is not worth my time and earnings to manage sales tax accounts for these 14 states on the list.
    We have to take special note of which states we ship to, how much tax to collect, establish sales tax accounts with those states, keep-up with and maintain those filing requirements for each state, manage those accounts, ect, ect.

    eBay had the option to collect and the remit the taxes on behalf of their sellers, just like Amazon does. eBay instead opted to push that responsibility and burden onto the seller.

    The states have every right to collect sales tax on commerce conducted in their state. Internet sales have long undercut local brick and mortar stores, these changes have been a long time coming.
    The problem here is eBay making it an issue for sellers to manage rather than incorporating the tax collection as part of their service which we pay for.

    I'm definitely looking at ending sales on eBay, I don't want to bother managing this shit for the little return it provides.

  5. #5

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    Since a couple of years eBay has been calculating shipping costs including tax for Belgium. This has let me to never buy from the USA again because now shipping prices are of the chart. I only look for EU eBay sales now.

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    Mega Driver Hedgehog-in-TrainingWCPO Agent Gryson's Avatar
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    Quote Originally Posted by Zz Badnusty View Post
    My state of Pennsylvania has required that sellers collect sales tax on all sales (and yes shipping charges are taxable), unless the seller can document that the sales tax is paid to another state. Obviously this is burdensome for the seller. I've remitted 6% PA Sales tax for all of my eBay sales throughout the past 2.5 years - no matter where they are shipped to.

    This year I got hit hard by federal tax. From roughly $12,000 in taxable sales I pocketed roughly $7800 after taxes and fees (including shipping expenses).
    I'd already decided that the effort and time involved to manage an eBay store is simply not worth it. I'm earning peanuts per hour of photographing, describing, listing and managing items, then the time to answer questions, package items, take to post office, etc ...then file taxes quarterly for just my state, then the impact on my federal return, etc.

    eBay is pushing the responsibility to file for these 13 other states onto the seller. It is not worth my time and earnings to manage sales tax accounts for these 14 states on the list.
    We have to take special note of which states we ship to, how much tax to collect, establish sales tax accounts with those states, keep-up with and maintain those filing requirements for each state, manage those accounts, ect, ect.

    eBay had the option to collect and the remit the taxes on behalf of their sellers, just like Amazon does. eBay instead opted to push that responsibility and burden onto the seller.

    The states have every right to collect sales tax on commerce conducted in their state. Internet sales have long undercut local brick and mortar stores, these changes have been a long time coming.
    The problem here is eBay making it an issue for sellers to manage rather than incorporating the tax collection as part of their service which we pay for.

    I'm definitely looking at ending sales on eBay, I don't want to bother managing this shit for the little return it provides.
    As I understand it, this is exactly what the change is about. From the OP's link:

    When a buyer purchases an item on eBay, and the ship to address is one of the above states, eBay will calculate and add the applicable sales tax at checkout. The buyer will pay both the cost of the item along with the sales tax. eBay will collect and remit the tax.
    You're probably one of the very few eBay sellers that voluntarily pays taxes. eBay is making it mandatory by collecting and remitting taxes for sellers who ship to buyers in the specified states.

  7. #7

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    Local venues? If they even are still in business, I've seen so many venues, video game and non-video game related that is local or a franchise get shut down in New York. Within the last year, lost a Friendly's, Payless, FYE, Rue 21, 21st Century Pools and Spas, all in one town. Lost a few Great American stores. More than likely will lose Sears and Kmart in a few towns. Not to get political, but these guys that run the state are making it more difficult to live. Everything is very expensive and taxed the highest on products. The FYE store? They shut down because of too high of rent for the space. They're driving people away. As much as I like a little bit of big business, New York don't give a shit about the little man, the local venues. They look for anything to get an extra buck or two. It's not a good outlook in my mind. I'll support a Sound Go Round or a Robot City Games for old stuff and GameStop when they have deals, but it's not something I do all the time.

    Sorry for the rant, but New York is one of the worst states to live in, even though I have lived in it all my life. When is enough taxes enough? Is the state that broke?
    Last edited by sull56ivan2010; 06-11-2019 at 09:53 AM.

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    WCPO Agent Tripredacus's Avatar
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    I have looked into it before, but at least in New York, only retail items are to be taxed. Used items are not included in the list of items requiring the tax. Of course the government won't ever say no, but companies always charge tax on everything to CYA and just give the government some free money.

    To me, it all depends on what price I am paying. If it is below market value, then paying some tax is no big deal, because I am still paying below market value. If it is a retail item, then OK there is no issue there either. But I will not get any item from Ebay at market value and pay tax on it.
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  9. #9

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    I've been collecting and playing games combined for the last 10 years. So what you're telling me is that I could have paid less for used games since they don't require tax? Think I could have saved at least a couple hundred from all the taxes from those old games at used game stores.

    I use eBay extremely rarely (think I've only bought stuff from there maybe two or three times in the last 16 years), but It sucks what they're doing. It's not going to shift stuff back to local venues. It's hard to make a living in New York State. And there's alternatives, though I would be skeptic of Amazon and a couple other sites. I'd be cautious of Craigslist.

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    Master of Shinobi Zz Badnusty's Avatar
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    Quote Originally Posted by Gryson View Post
    As I understand it, this is exactly what the change is about. From the OP's link:
    When a buyer purchases an item on eBay, and the ship to address is one of the above states, eBay will calculate and add the applicable sales tax at checkout. The buyer will pay both the cost of the item along with the sales tax. eBay will collect and remit the tax.

    You're probably one of the very few eBay sellers that voluntarily pays taxes. eBay is making it mandatory by collecting and remitting taxes for sellers who ship to buyers in the specified states.
    Thank you for pointing that out.
    I must have skimmed that part, as further up in the same notice it states:
    Regardless of where you're physically located, if you do business in certain states, those states may require you to collect applicable taxes on your transactions.
    ...
    If you're required to charge sales tax, you can set up a tax table and apply it to your listings. We'll then add the tax to the buyer's total at checkout. You're responsible for paying the sales tax to the appropriate authority.
    I haven't exactly been voluntarily collecting and remitting PA and Federal tax. I got hit with the Paypal generated 1099k the past couple years. My job requires detailed financial disclosure and that first 1099k opened a can of worms, so I had to get everything in order and account for all my sales, and thus PA required that I pay them the tax on all my eBay activity.

  11. #11
    Outrunner Greg2600's Avatar
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    Paying in NJ as of May 1. Still prefer to use Ebay to buy/sell instead of Amazon.

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    Illinois is not on the list yet but JB pritzker is such a money-grubbing pig and I think it's only a matter of time before he puts it on the list. That really sucks even though I don't sell a whole lot on there. Illinois average sales tax is anywhere from 8% to 10.5%. ouch!
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    WCPO Agent Tripredacus's Avatar
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    Quote Originally Posted by sull56ivan2010 View Post
    I've been collecting and playing games combined for the last 10 years. So what you're telling me is that I could have paid less for used games since they don't require tax? Think I could have saved at least a couple hundred from all the taxes from those old games at used game stores.

    I use eBay extremely rarely (think I've only bought stuff from there maybe two or three times in the last 16 years), but It sucks what they're doing. It's not going to shift stuff back to local venues. It's hard to make a living in New York State. And there's alternatives, though I would be skeptic of Amazon and a couple other sites. I'd be cautious of Craigslist.
    As it would seem, it is the buyer who is responsible to acquiring the permit to be able to make purchases with tax exempt status, rather than the other way around. For example, purchases made with the intention of resale are not taxable in NYS, but in order for you to be able to get them tax free, you would need to apply for that ability. Then there is the thing I can't figure out where somehow a tax exempt organization can resell donations and then charge tax on it.
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    Mega Driver Hedgehog-in-TrainingWCPO Agent Gryson's Avatar
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    Quote Originally Posted by vintagegamecrazy View Post
    That really sucks even though I don't sell a whole lot on there. Illinois average sales tax is anywhere from 8% to 10.5%. ouch!
    To be clear: It's not the sellers who are really getting screwed here, it's the buyers. If they add Illinois to the list, then you will pay sales tax on every purchase you make on eBay, regardless of where the seller is.

    Of course, sellers don't like it because fewer people will use eBay, but this really hurts you if you're located in one of the states requiring eBay to collect tax from buyers.

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    [OG] Obsessed Gamer spoonman's Avatar
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    Yes, I'm not a fan.
    Attachment 15009

    I find myself not buying as much since they started charging taxes. I still don't quite understand why I'm paying NY state taxes on purchases from Japan.

    I also noticed PSN started charging taxes for digital downloads a few months ago. I didn't think they were allowed to tax non tangible items.
    Last edited by spoonman; 06-13-2019 at 03:30 AM.


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