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View Full Version : buying equipment off ebay?


Ramairfreak98ss
01-02-2008, 07:26 PM
I see often, and have bought equipment, big and small off of ebay advertisers.

If you buy things no matter if its a trimmer head for $30 or a $10k lawnmower, should you pay their states sales tax?

I recently bought equipment that totaled 7k, two items off ebay i did "not" click buy it now, i called them up for their price they had on ebay, confirmed the total price to pickup, and then when i drive 3 states away, they hit me with $350 in sales tax, and then play it off as though "why should you not have to pay sales tax"?

Do your ebay transactions always charge you sales tax? This was an item that was $390 to ship to me or I can drive 250 miles all day there and back, pickup myself and back home. Instead of paying $390 to ship a $7k piece of equipment, i paid $125 in diesel fuel to fill the truck, drove 500 miles+ in one day, had numerous tolls "east coast :(" totalling at least $25 AND had to pay $350 in sales tax. So if anything i ended up spending a lot more than just the overpriced shipping quote i got for the item.

I know any over the counter sales you need to charge sales tax, but I was going to give my CC# by phone to the place the day prior to pickup so that it was all paid for, ready to go, no confusion, no "surprises" as in another states sales tax at the last minute :(

Ive bought tractors for 14k before and didnt pay sales tax because it was bought over ebaay for $14,200 and thats exactly what i paid at a dealer ship for the machine :confused:

backhoe1
01-02-2008, 07:33 PM
What difference does it make? Atleast here if you don't pay sales tax in the state where you bought it then you owe "Use Tax" to South Dakota, I can't believe that isn't the case elsewhere.

JB1
01-02-2008, 07:38 PM
you can get by without paying the sales tax like your doing, but you better hang on tight if the state does a audit on you, because you will be paying the tax then plus a nice penality.

Ramairfreak98ss
01-02-2008, 07:38 PM
What difference does it make? Atleast here if you don't pay sales tax in the state where you bought it then you owe "Use Tax" to South Dakota, I can't believe that isn't the case elsewhere.

probably is, im sure theres that thing for "ebay" or out of state purchases to fill out on your tax form each year. I dont know if it was on there last year though.

In NJ its 7% tax, in PA its 6%, MD 5%, DE is 0% so its easy to go to DE dealers just to buy equipment.

And if you did pay 5% tax in MD and came back to NJ, you have to pay NJ 2%? Or if you got it from DE at 0% tax and came here, why should NJ be entitled to 7% tax on that purchase? You dont pay tax with items shipped one state over into your state right? we dont pay the shippers state nor our own.

Stillwater
01-02-2008, 07:40 PM
some states require sales tax to be collected regardless of the type of sale, But most states do not have a sales tax provision for Internet sales. if you pick the item up in person it is not considered a Internet sale even if you payed over the Internet

Albery's Lawn & Tractor
01-02-2008, 08:05 PM
I've always been told you had to pay sales tax if you picked the item up, or take possession of it in their state. If you have it shipped then you don't pay. But like mentioned above watch out for that audit....

Marek
01-02-2008, 08:12 PM
I too buy alot off of e bay and have never been hit with sales tax.

LindblomRJ
01-02-2008, 08:31 PM
What difference does it make? Atleast here if you don't pay sales tax in the state where you bought it then you owe "Use Tax" to South Dakota, I can't believe that isn't the case elsewhere.

You ever have the Department of Revenue do its audit?

mattfromNY
01-02-2008, 08:40 PM
In NY, if the item is delivered to you out of state (shipped, mailed, ups, etc.) it is NOT taxed, if you pick the item up in person if IS taxed. I used to work at a dealership, and that is how we had to do it. Sometimes the dealer could get away with not charging the tax by claiming to have 'delivered' it to you.?. The dealership I used to work at is going through a sales tax audit, I had a nice visit from the Taxation and Finance senior criminal investigator (a long story, I'm not personally in trouble but I cant say that much for my former employer) Pay your tax (or work out a legal way to avoid paying it) and be happy, you dont want to be in the situation my former employer is in, that is all I can tell you with certainty.

Lawnworks
01-02-2008, 09:00 PM
From my ebay experiences, you have to pay sales tax if it is not shipped out of state. On vehicles, you will get taxes no matter what... you may not pay immediately, but the dealer reports the sale to your state and they will get "their" money.

I try to buy trucks and equipment from individuals to get the 7% savings.

SimonCX
01-02-2008, 09:40 PM
If it's shipped there is only sales tax on equip if you live in the state you bought it from. Usually it states tax is only charged to residents of the state. If you paid in person then there will be tax even though you live in a different state because it's put in the computer just like everyone that walks in. If picked up in person in another state I would pay paypal because the item is paid for without tax in full so they really can't add on anything without telling you before had. Sometimes it's better just to pay the shipping and wait a couple days then to pay tax.

Tadams
01-02-2008, 10:04 PM
From my ebay experiences, you have to pay sales tax if it is not shipped out of state. On vehicles, you will get taxes no matter what... you may not pay immediately, but the dealer reports the sale to your state and they will get "their" money.

I try to buy trucks and equipment from individuals to get the 7% savings.

Have you ever seen the ads in autotraders or biketraders that tell you to come to Alabama because you don't have to pay tax there? I had a buddy that bought into that and went over there to get a fourwheeler. I tried to tell him that he would still have to pay GA sales tax. It may not be right now but it will be soon. He told me I was crazy and that they wouldn't print that if it wasn't true. He went ahead and got the quad. About a month later the paper came in the mail telling him to pay the tax and to send in a copy of the bill of sale for proof of purchase price. I laughed my butt off when he reluctantly told me this. I couldn't help it and I tried not to but I had to tell him " I told ya so!" He didn't think it was as funny as I did:laugh:.

Stillwater
01-03-2008, 08:28 AM
In MA. you pay the sales tax when you register it

Ramairfreak98ss
01-03-2008, 04:19 PM
If it's shipped there is only sales tax on equip if you live in the state you bought it from. Usually it states tax is only charged to residents of the state. If you paid in person then there will be tax even though you live in a different state because it's put in the computer just like everyone that walks in. If picked up in person in another state I would pay paypal because the item is paid for without tax in full so they really can't add on anything without telling you before had. Sometimes it's better just to pay the shipping and wait a couple days then to pay tax.

Yeah your right, i thought i was saving a few bucks and getting it a couple days sooner at least :/

I dont think the company offered a paypal option, they accepted check, money order or in store pickup and of course CC over the phone. I thought it was a little strange that they didnt want me to pay for it with the CC ahead of time since most places want the $$ so they know youll be there to pick items up before they move around skids or equipment just for your item to be ready.

I just felt a little jipped in the end after doing an ebay type sale. Again, im sure its just because i walked in instead of having the darn stuff shipped, yet i made my final decision based on the cost of having it shipped VS picking it up and saving almost $400 in shippping, i ended up paying more AND had to do all the hauling:angry:

newz7151
01-03-2008, 07:37 PM
Yeah your right, i thought i was saving a few bucks and getting it a couple days sooner at least :/

I dont think the company offered a paypal option, they accepted check, money order or in store pickup and of course CC over the phone. I thought it was a little strange that they didnt want me to pay for it with the CC ahead of time since most places want the $$ so they know youll be there to pick items up before they move around skids or equipment just for your item to be ready.

I just felt a little jipped in the end after doing an ebay type sale. Again, im sure its just because i walked in instead of having the darn stuff shipped, yet i made my final decision based on the cost of having it shipped VS picking it up and saving almost $400 in shippping, i ended up paying more AND had to do all the hauling:angry:

You could have filled out a "Use" form and given it to them. They would have had to accept that and keep it on file. That form lets anybody auditing them know that YOU claimed you will pay the USE tax amount in your own location.

lb59
01-05-2008, 10:27 AM
you can get by without paying the sales tax like your doing, but you better hang on tight if the state does a audit on you, because you will be paying the tax then plus a nice penality.


It's my understanding that Internet sales are tax exempt.

Internet sales are non taxable from what I understand.

JB1
01-05-2008, 10:56 AM
It's my understanding that Internet sales are tax exempt.

Internet sales are non taxable from what I understand.

There is a use tax, where they will get you.

1cooltreeguy
01-05-2008, 11:02 AM
Shipped to you - no sales tax at time of purchase. You pick up in their state - then be prepared to pay sales tax...Simple

backhoe1
01-05-2008, 02:21 PM
Sorry But, atleast here in SD it it not that simple! The state could care less if you had it shipped or picked it up, they only care that they get their tax. Here atleast even if you paid tax when you bought something in a state with lower tax they say you owe them the difference. I live approx. 15 miles from MN border where they have no tax on clothing etc. so people do their shopping there to save on tax. only to find out in audit that they haveto pay it anyway and would've been better off saving money on the gas to get there.

1cooltreeguy
01-05-2008, 02:50 PM
Sorry But, atleast here in SD it it not that simple! The state could care less if you had it shipped or picked it up, they only care that they get their tax. Here atleast even if you paid tax when you bought something in a state with lower tax they say you owe them the difference. I live approx. 15 miles from MN border where they have no tax on clothing etc. so people do their shopping there to save on tax. only to find out in audit that they haveto pay it anyway and would've been better off saving money on the gas to get there.

AHHHHH - so do not buy anything from the DAKOTA'S off of ebay.. Good info to have. I usually try to buy from the carolinas, tn, ga or PA.... NEVER PAID TAXES on their end....only on my end. I had everything shipped with a valid carrier.....:laugh::laugh::laugh:

Ramairfreak98ss
01-06-2008, 10:15 PM
I live approx. 15 miles from MN border where they have no tax on clothing etc. so people do their shopping there to save on tax. only to find out in audit that they haveto pay it anyway and would've been better off saving money on the gas to get there.

So you know people who've gotten audited for buying clothing tax free in another state? Arnt clothes NON taxable just as food is?

Ramairfreak98ss
01-06-2008, 10:16 PM
AHHHHH - so do not buy anything from the DAKOTA'S off of ebay.. Good info to have. I usually try to buy from the carolinas, tn, ga or PA.... NEVER PAID TAXES on their end....only on my end. I had everything shipped with a valid carrier.....:laugh::laugh::laugh:

Is that why 7yrs back or so, Gateway 2000, now Gateway that manufactures computer systems charges you freking sales tax AND expensive shipping for a computer lol. I think theyre from SD

lb59
01-07-2008, 07:08 PM
So you know people who've gotten audited for buying clothing tax free in another state?
Aren't clothes Non Taxable just as food is?

I've never heard of clothes being Non Taxable .
Food is Taxable in West Va.

newz7151
01-07-2008, 08:02 PM
Is that why 7yrs back or so, Gateway 2000, now Gateway that manufactures computer systems charges you freking sales tax AND expensive shipping for a computer lol. I think theyre from SD

Check your information. Acer owns Gateway computers.

backhoe1
01-07-2008, 08:40 PM
Ramair, no i don't know anyone personally that has been caught, but this is how the guy from the dept. of revenue explained it to me and i personally believe him. The point i was trying to make is that if you owe the tax just pay it and move on. everything is basically taxed here except INCOME so i guess it all evens out. and yes gateway computers were made here as well

bj1bmx
01-08-2008, 10:48 PM
you are required to pay sales tax at the time of sale if the company has a physical location in the state in which it is bought. for example, ordering online from best buys website.

if no sales tax is paid at the time of sale and YOUR state collects sales tax, you are supposed to file a USE TAX return in the amount of your states sales tax rate times the purchase amount.

its to stop people from buying goods from out of state. internet isnt really regulated, so unless whatever youre buying has to be titled, you probably wont have to worry about it. but technically, you are supposed to pay it...