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Old 02-25-2020, 07:30 PM
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How are taxes calculated on net sales? How are taxes calculated on net sales? How are taxes calculated on net sales? How are taxes calculated on net sales? How are taxes calculated on net sales?  
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Default How are taxes calculated on net sales?

So I made a purchase on Ebay. I got the invoice, did the math, and I was being charged 9% sales tax.

Texas state & use taxes are 6.25%.

I contacted the seller a little while ago and said WTH?

Is there some sort of Federal tax tacked on? Or are they trying to charge their local rate?
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Old 02-25-2020, 07:38 PM
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How are taxes calculated on net sales? How are taxes calculated on net sales? How are taxes calculated on net sales? How are taxes calculated on net sales? How are taxes calculated on net sales?  
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Ebay probably charged tax on the shipping charge
Also, do you have a local option sales tax?
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Old 02-25-2020, 07:42 PM
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How are taxes calculated on net sales? How are taxes calculated on net sales? How are taxes calculated on net sales? How are taxes calculated on net sales? How are taxes calculated on net sales?  
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Quote:
Originally Posted by pawngal View Post
Ebay probably charged tax on the shipping charge
Also, do you have a local option sales tax?


Yeah, I belive my local rate is 8.25%.

I checked a recent Amazon purchase and it was 6.25%.
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Old 02-25-2020, 07:42 PM
Skeet 028 Skeet 028 is offline
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How are taxes calculated on net sales? How are taxes calculated on net sales? How are taxes calculated on net sales? How are taxes calculated on net sales? How are taxes calculated on net sales?  
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+Did they charge sales tax on the complete invoice price? Meaning shipping too. Some states require tax on all. Personally I think it is a rip. ebay collects the tax...Bet they take a cut for collecting. Wonder if it all gets paid. Heck here in Wy you are supposed to collect tax on stuff you sell at yard sales
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Old 02-25-2020, 08:10 PM
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How are taxes calculated on net sales? How are taxes calculated on net sales? How are taxes calculated on net sales? How are taxes calculated on net sales? How are taxes calculated on net sales?  
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Originally Posted by Skeet 028 View Post
Heck here in Wy you are supposed to collect tax on stuff you sell at yard sales

That's true pretty much everywhere.
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Old 02-25-2020, 11:07 PM
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Pretty much all cities in Texas levy a local sales tax as do many counties, hospital districts, transit districts, economic development districts, etc. I believe the maximum rate can be 9%. 6.25% goes to the state. The rest goes to local entities.

The state once required merchants who sell online or by mail order to calculate tax based on the buyer's location within the state of Texas, but recently (a few years ago) that was changed. The seller now collects tax based on the seller's location rather than the buyer's.
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Old 02-25-2020, 11:50 PM
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Quote:
Originally Posted by jtcarm View Post
That's true pretty much everywhere.
In Louisiana you are required to keep track of your online purchased throughout the year and then calculate the state, parish and local tax, not the amount on your state income tax form and send it in with yout income tax payment.
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I want to see the accounting nightmare in Baton Rouge where someone is trying to cut out payments from each return and allocate to the state, parish and municipality their respective portions. Assuming a one dollar purchase that meand .045 to the state, .04 to the parish and .005 I guarantee that after factoring in the software and manpower needed to make sure everything goes where it is supposed to, the state isn't gonna start to see a profit for years to come-assuming there are no additional changes.
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Old 02-26-2020, 03:09 AM
Skeet 028 Skeet 028 is offline
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Well I told the local sales/use tax lady.. Fine I will pay them some sales tax on a yard sale sold 22 dollars worth. Sales tax was 4% so they get ...88 cents...less the cost of a stamp(if they supply the envelope and if not a nickle for that) to send it in plus I would collect the tax for 10% of the tax. Stamp is what 55 cents? plus a nickle for the envelope and the 10% is another 9 cents...so I would send them 19 cents....or she could come to the house when I had a yard sale and collect the tax after my sales from the buyers. Went over big time...or they could sue me for the money and make it look really good for the state in court...yeah...I know I would lose but they would have to spend hundreds to get me to acknowledge their argument so I could pay the 88 cents just before the court hearing. I once sold a rifle to a state tax investigator..When he paid he asked about the tax... I told him at the time(I knew what he was doing) that since he felt he owed the tax to go to one of the Port of Entry offices and declare the tax as he was supposed to do. He stuttered and fizzed but I said it was incumbent upon him to pay the tax...if I didn't collect it. BTW I can guarantee you ebay is not going to collect taxes for states without getting a discount for doing the work

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Old 02-26-2020, 03:25 AM
Skeet 028 Skeet 028 is offline
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Quote:
Originally Posted by TX-Dennis View Post
The state once required merchants who sell online or by mail order to calculate tax based on the buyer's location within the state of Texas, but recently (a few years ago) that was changed.
The seller now collects tax based on the seller's location rather than the buyer's.
Well I am sure Caj can point out the error of my thinking but the last sentence says the buyer is paying taxes in a location where he has no political representation at least locally. Again no taxation without representation was a basic tenet of the founding of this great country. It's all about the money of course. I can understand that I should collect taxes if I am in business and am required to be issued a tax number...But selling my old acquired and unneeded items should not be taxed. again
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Old 02-26-2020, 03:46 AM
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Death and taxes!

When I pre ordered a 4.25" Python from Sportsmans Outdoor Superstore that's in Ohio, I had to pay $105.00 in taxes.

Brought the price from $1,499.99 to $1,604.99. Free shipping.
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Old 02-26-2020, 05:47 AM
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And to think the Sons of Liberty got pissed off enough about a 2% tea tax to start a revolution.

Its been calculated that 54 cents of every dollar earned by a US citizen (on average) is paid to the local/state or federal govt. for a tax,fee,fine etc.

eBay charges sales tax on the full amount of the invoice. (unless you file a tax exempt/resale form from your state with them)
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Old 02-26-2020, 02:31 PM
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Quote:
Originally Posted by Breakaway500 View Post
And to think the Sons of Liberty got pissed off enough about a 2% tea tax to start a revolution.

Its been calculated that 54 cents of every dollar earned by a US citizen (on average) is paid to the local/state or federal govt. for a tax,fee,fine etc.

eBay charges sales tax on the full amount of the invoice. (unless you file a tax exempt/resale form from your state with them)
Full amount of the invoice, and I believe based on the seller's locale, not the buyer's.
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Old 02-26-2020, 03:35 PM
Skeet 028 Skeet 028 is offline
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Don't think it is on the sellers location as the tax here is 4% on a 24.00 total invoice(including shipping) to Spring Valley Ca was 1.24 and no I don't know tax rates in Calipornia... But if only on the item purchased it would figure out to 7.75% tax in that locale. None of the figures work for Wy sales tax rates as park county would be 64 cents or 96 cents for the whole thing. Big Horn county is 5% and that would be 80 cents on the cost of the item and a 1.20 fee on the complete invoice. Much of the ranch here is in Park County but my house is in Big Horn by 120 yards

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Old 02-27-2020, 12:43 AM
HOUSTON RICK HOUSTON RICK is offline
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There are over 10,000 sales tax jurisdictions in these United States all with different rates, what gets taxed and different rules as to what rates apply when. Their lawyers are on salary and it does not cost them anything as their lawyers would otherwise be sleeping on their desks. Sales taxes are now like speeding tickets. you cannot win unless there are big bucks at issue, and they know it. When you fill out a tax exemption certificate you are relieving the seller of collecting any tax, but you are still on the hook to the state.
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Old 02-27-2020, 12:07 PM
Old Arkansawyer Old Arkansawyer is offline
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How are taxes calculated on net sales? How are taxes calculated on net sales? How are taxes calculated on net sales? How are taxes calculated on net sales? How are taxes calculated on net sales?  
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When assessing my personal property several years ago I assessed
my three (3) mules. The assessor said you own more mules than
anyone in the county. Of course there is a guy about 4-5 miles
from me who owns six (6), hummm.
As to yard sales, aren't most of those transactions made in cash?
It would be hard to prove how much money was made on a few
old worn out items. If you guys find a $20.00 bill on the road do
you run down and pay the tax on it? Give me a break.
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