Sold identical item, to same state , same price, but sale tax collected was different?

[fergua3]

2 days ago i sold an item for 28.99 plus 8.85 shipping to a buyer in NY.  Today i sold another of the same item, at the same price to a buyer in NY.  Sales tax collected on todays sale was 3.31, on the sale from two days ago it was 3.03.  A difference of 28 cents.  Why?

[marnotom!]

Are the buyers in different counties? Sales taxes in the US can be levied by cities and counties, not just the state itself. See if this page helps:

https://smartasset.com/taxes/new-york-sales-tax

[lotzofuniquegoodies]

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@marnotom! wrote:
Are the buyers in different counties? Sales taxes in the US can be levied by cities and counties, not just the state itself. See if this page helps:

https://smartasset.com/taxes/new-york-sales-tax

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@fergua3 

jasmen@ebay 

Interesting if that is case. Many states/provinces that have items that are either tax exempt or taxed at different rates but ebay is unable to correctly apply taxes in those situations. Basically a 1 size fits all system. Or is it?

-Lotz

[ricarmic]

If my recollection is correct "way back" when the IST was introduced US buyers were advised/came to understand they needed to add the last (extra) section of 4 digits to their zip code to make sure the right tax rate was applied. I'm assuming that allows eBay to properly identify the county as appropriate.

I know that some of my regular buyers ended adding the extra portion on their zip code around that time.

However my recollection might be wrong....

[fergua3]

i've done a bit of  reading online and that is indeed tha reason.  Tax rates vary within States, they are not necessarily flat throughout the State.  Surprising.

[pjcdn2005]

As others have said each county and/or city may have a separate tax on top of the state tax.

[jasmen@ebay]

Hey @lotzofuniquegoodies thanks for the tax, the sales tax is based on where exactly the buyer is located so depending on the city it can differ. 

[lotzofuniquegoodies]

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jasmen@ebay wrote:

Hey @lotzofuniquegoodies thanks for the tax, the sales tax is based on where exactly the buyer is located so depending on the city it can differ. 

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jasmen@ebay 

That still does not address the question regarding items that are taxed at lower rates or are tax exempt as per the applicable laws to those states/provinces.

-Lotz

[jasmen@ebay]

Hi @lotzofuniquegoodies just so we're on the same page, what is the specific question? Thanks! 

[lotzofuniquegoodies]

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jasmen@ebay wrote:

Hi @lotzofuniquegoodies just so we're on the same page, what is the specific question? Thanks! 

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I am not any sort of expert on tax laws. I just know from a large amount of reading that tax collection varies state to state and province to province. See attached for examples from recent research on the topic. It is also standard  business practice to show the the tax rate (%) on an invoice. If you go to any B&M store in Canada they will give you a breakdown of the taxes collected/and or items that were exempt with totals. This is information that eBay should have been well aware of before implementing an across the board tax collection.

No State Sales Tax

The following five states currently have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire and Oregon. Nov 4, 2020  You won't find a state-regulated sales tax on clothing or other goods you purchase in Delaware, Montana, New Hampshire and Oregon. Although Alaska doesn't have a state sales tax, localities are allowed to collect sales tax ranging from 1 to 7 percent.

You are not required to pay the Ontario portion (8%) of the HST on items such as books, children's clothing and footwear, children's car seats and car booster seats, diapers, qualifying food and beverages, and newspapers. The Canada Revenue Agency administers the rebate on behalf of the Government of Ontario.Mar 29, 2022

https://www.military.com/paycheck-chronicles/2017/08/24/tax-exempt-textbooks

eBooks which eBay does sell:

Digital products, including books, are currently only taxable in about half the U.S. states with a sales tax. This means that if you sell an eBook to a buyer in Georgia you are not required to collect sales tax, but if you sell an eBook to a buyer in neighboring Tennessee you are required to collect sales tax.

Are books subject to tax?

Canada:

Books are subject to the 5% federal Goods and Services Tax (GST). It is not possible to count the 7% Provincial Sales Tax (PST) on books since they are not added to B albums. Feb 17, 2022

Books shipped to a Canadian address are subject to GST (Goods and Services Tax) but not PST (Provincial Sales Tax). 

Are Books Taxable In Ontario?

Which are the benefits of rt in Ontario? Aside from books and clothing for children, toys and car seats, diapers, diapers for children, booster seats for kids, and feminine hygiene products are not subject to taxes under Alberta’s 8% tax rate.

Lastly there are items/situations where tax can be refunded but proper receipts need to be submitted.

Exempt Organization Types

• Charitable Organizations.
• Churches and Religious Organizations.
• Private Foundations.
• Political Organizations.
• Other Nonprofits.

-Lotz

As a side certain forms of currency are tax exempt. This has been brought up on both boards many times but has been entirely void of a response from eBay.

[pjcdn2005]

Clothing isn't taxed on eBay in the applicable states IF it is in the clothing category.  For example, if a buyer in Montana purchases a hockey jersey listed in clothing, shoes & acces. they won't be taxed.  If it is listed in sports mem, cards etc., it will be taxed.   It's my understanding that taxes are always category based here.  

I have no idea how books will be handled once eBay takes over taxes in Canada.

AFAIK it does seem that they tax bullion even when it shouldn't be and when it is the bullion category. 

[reallynicestamps]

At the moment it is worth noting, for those late to the dance, that sellers pay only eBay fees on these taxes, not the taxes themselves.

Not that we are happy about that either, although it is Standard Practice with financial institutions.