[4yearlurker]

So what happens if a small time Ebay seller living in Pennsylvania, trying to make a few extra bucks sells a used book and a jacket to a guy in Indiana?

[z3n]

So what happens if a small time Ebay seller living in Pennsylvania, trying to make a few extra bucks sells a used book and a jacket to a guy in Indiana?

~~~~~

Ideally, ebay collects the sales tax for you. They add it on the order.

I say ‘ideally’, but this is a huge burden on e-commerce sites and their storefront software. It’s not just keeping track of 50+ state’s sales tax rates, but for many, local counties and other jurisdictions take varying amounts, so you have to pay for thousands of different sales tax rates, potentially, and you have to be able to verify where all your buyers live, and then calculate and cut checks for them all (or at least their states) on a periodic basis. This can be automated with software, but the tax tables and and their deliniations have to be updated, and someone has to manually run all these payments often even if they are electronic. It’s crazy stuff.

All this so someone in PA can ship his used 1992 edlebroch carbeurator to an ebay buyer in IN for $18 plus shipping.

[Ouderkirk]

I think that PayPal will collect the sales tax, and py it on your behalf.

IF the buyer picks it up, not sure how that plays...wonder if the State Tax & Finance will kick your door down with M4’s drawn, shoot your dog and take you out in cuffs.

[Still Thinking]

So what happens if a small time Ebay seller living in Pennsylvania, trying to make a few extra bucks sells a used book and a jacket to a guy in Indiana?

Used merchandise. Not normally subject to sales tax.