Why do sellers charge tax?

rainyjewels

rainyjewels

eat me
O.G.
Nov 8, 2006
4,664
42
#1
I'm eyeing an auction from a pretty reputable seller. She charges 4% tax on any item going to NY, which she and I both happen to be from. I truly don't understand why? :confused1: i've never had any seller charge tax on an auction nor have i myself charged tax when shipping to anyone in NY (why would i? am i missing something?)...so when I clicked BIN and this decent chunk of change appeared tacked onto my total, i was baffled.

Can anyone shed some light?
 
#3
Hmm...that's interesting. are they obligated to charge the same sales tax amount as the state regulates? because NY mandates like 8.375%...are sellers allowed to just say whatever amount tax as they want? sorry, confused and would love to understand...:yes:
 
#5
Yes, if she has a business she must charge sales tax.

To explain the 4%
New York
New York has a 4% state sales tax. All counties and some cities add local taxes ranging from 3% to 4.75%. The combined sales tax in Utica, New York, for example, is 8.75%. In New York City, total sales tax is 8.375%, which includes 0.375% charged for the service of the Metropolitan Transportation Authority (New York).
There is no New York City sales tax imposed on the purchase of clothing and footwear regardless of the amount. As of September 1, 2007, New York State has eliminated sales tax on all clothing and shoes if the single item is priced under $110. Most counties and cities have not eliminated their local sales taxes on clothing and shoes. There are however, 11 counties and 5 cities (most notably New York City, New York, Queens, Kings, Richmond, and Bronx, which make up New York City are not counted)) that have done so. The counties where the year-round exemption will apply include: Chautauqua, Chenango, Columbia, Delaware, Dutchess, Greene, Hamilton, Madison (outside the City of Oneida), Rensselaer, Tioga, Broome, and Wayne. The cities where the year-round exemption will apply include: Gloversville, New York City, Norwich, Olean, Binghamton, and Sherrill.
As of June 1, 2008, when products are purchased online and shipped within New York State, the retailer must charge the tax amount appropriate to the locality where the goods are shipped, and in addition, must also charge the appropriate tax on the cost of shipping and handling.
 
#7
Here's one more point for you to chew on. Any purchase you make on the web or by mail or phone where sales tax is not collected is supposed to be reported on your state income tax return and you are obligated to pay the appropriate sales or use tax.

You say you live in New York and are subject to a 4% state sales tax. You buy something from California where the retailer doesn't collect NY taxes. You are supposed to claim that purchase and pay that sales tax.

Check the instructions on your state tax return under miscellaneous or other taxes due. Each state's rules vary, so this may or may not apply to everyone.
 
#8
coachfreak said:
Yes, if she has a business she must charge sales tax.

To explain the 4%
New York
New York has a 4% state sales tax. All counties and some cities add local taxes ranging from 3% to 4.75%. The combined sales tax in Utica, New York, for example, is 8.75%. In New York City, total sales tax is 8.375%, which includes 0.375% charged for the service of the Metropolitan Transportation Authority (New York).
There is no New York City sales tax imposed on the purchase of clothing and footwear regardless of the amount. As of September 1, 2007, New York State has eliminated sales tax on all clothing and shoes if the single item is priced under $110. Most counties and cities have not eliminated their local sales taxes on clothing and shoes. There are however, 11 counties and 5 cities (most notably New York City, New York, Queens, Kings, Richmond, and Bronx, which make up New York City are not counted)) that have done so. The counties where the year-round exemption will apply include: Chautauqua, Chenango, Columbia, Delaware, Dutchess, Greene, Hamilton, Madison (outside the City of Oneida), Rensselaer, Tioga, Broome, and Wayne. The cities where the year-round exemption will apply include: Gloversville, New York City, Norwich, Olean, Binghamton, and Sherrill.
As of June 1, 2008, when products are purchased online and shipped within New York State, the retailer must charge the tax amount appropriate to the locality where the goods are shipped, and in addition, must also charge the appropriate tax on the cost of shipping and handling.
Click to expand...

I never knew that, great information thanks =D
 
#9
Echoes said:
Here's one more point for you to chew on. Any purchase you make on the web or by mail or phone where sales tax is not collected is supposed to be reported on your state income tax return and you are obligated to pay the appropriate sales or use tax.

You say you live in New York and are subject to a 4% state sales tax. You buy something from California where the retailer doesn't collect NY taxes. You are supposed to claim that purchase and pay that sales tax.

Check the instructions on your state tax return under miscellaneous or other taxes due. Each state's rules vary, so this may or may not apply to everyone.
Click to expand...
Do you think people are going to do that???? I mean if its a used bag etc, are they going to fill in their returns, after all the tax's people pay...and add purchases from ebay??? Does any one out there??? I'm curious. Alfie x
 
#11
In NYS, we have to!

If you leave that line item blank, or enter a 0, it could trigger an audit.

Many NY residents know about it as it's been a line item on our State tax return for a few years now.

Accountants advise clients to take this seriously!
 
#14
alfiebach said:
wow, i never realised, so every thing you buy,out of state you pay tax on:faint:...i thought we had it bad in the UK, obviously not..thanks for the update alfie x
Click to expand...

Correct, IF it's something you would normally be taxed on if you bought it from a local store. I'm not sure that used clothing or accessories would be taxable though.
 
#15
EVERYTHING you buy online you are suppose to pay taxes on if they weren't collected by the merchant. Usually called a usage tax on your state income tax form.

Exception is only for states that don't have income taxes (like Texas!!)
 
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