Ebay Start Collecting Sales Tax

ebay just sent me a notice about sales tax.

For those states where they are required to collect it, ebay will handle everything! They collect it and they send it to the states. They have been adding it to buyers' cost from a few states already but it never shows up in my Pay Pal account so not my problem - I would have had to quit ebay if I had to track payments for 50 states.

Yup got that email as well. Now it seems like (if I understood everything correctly) it is all based on where the buyer lives and they will have to pay the taxes whereas the seller doesn't have to do anything. So selling still seems like it would be ok, but it is just a bummer for those that live in higher sales tax states when trying to buy

My LCS charges 9.75 % KS state tax. I simply don't buy anything from him over 10-20 bucks. However private party and internet sales are presently nontaxable. This will change soon. The extra 9.75 % is a show stopper for me. What can one expect from a State that taxes food 9.75% ? Frankly tax on coins and bullion is IMO draconian and slams coinshops hard. Watch, taxes are going to change the coin playing field fast and negatively.

More states than not have been moving towards exempting numismatics and bullion either entirely or over a certain purchase amount. I wouldn't hold my breath if you live in a traditionally tax heavy state, but I would expect some more states to join in on that with continued efforts. The sales tax on the internet was a big win for the states already and in the grand scheme of things the numismatic market is just a drop in the lake compared to all the everyday items that will be taxed now.

Just wait until these mom and pop shops receive multiple State tax audits for failure to collect and remit SALTS. SD Bullion says it costs them $70k per year for the tax remittance software and associated tax accountants.

I can still remember what happened at a big Texas (antique lure or coin show - cannot remember). I was not in attendance. But here is what I was told. Some guys showed up and told everybody they had to collect sales tax on all sales. Or they had the option of buying a one-time permit for $25 and would be exempt for collecting the tax. Turned out it was a scan and they had nothing to do with Texas taxing authority. Many people bought the "permit".

Okay, maybe I've been living under a rock, but this is the first time, that I've noticed, that I've sold a coin and had ebay add sales tax to the total price. Is this new? Will I get the $2.03 tax as part of my payment and then have to "send" it to RI, or does ebay collect the tax and make the payments?

Just curious.