I sold something on eBay to a person in Washington state (i'm in Ohio) and eBay hit them with a tax. It was $10.80 tax on a $120 item. First time i have seen it.
Quoted from ForceFlow:
I've had it happen to me once as a buyer when the seller was in the same state. Cost me an extra $20. Blech.
When customers who live my state, Ohio, buy something I have eBay and PayPal set to collect the sales tax on my behalf which I have to pay. That tax money goes to me and then I pay the state of Ohio. You can see this before finalizing the transaction.
For out of state people there has never been extra sales tax and this was the first time I seen it on eBay. The extra tax collected for this Washington state person never actually hit my paypal account (like it does for Ohio tax which I then pay). It was all behind the paypal/ebay scene.
As far as I am concerned I collect Ohio Sales tax and pay it as appropriate. People in other states I think it should be up to the buyer to properly report and pay taxes. If I have to keep track of that for every state it would be a cluster F. Taxes suck but its part of doing business... if I am liable for all these different state's taxes I hope eBay and PayPal take care of it. Cutting a tax check to 50 states... ugh no thank you pls.
As far as the taxes hurting my business... I don't think it will be major reduction in sales... Still sucks tho. No one likes taxes.
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