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buying equipment off ebay?

Discussion in 'Trucks and Trailers' started by Ramairfreak98ss, Jan 2, 2008.

  1. Ramairfreak98ss

    Ramairfreak98ss LawnSite Silver Member
    Posts: 2,210

    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:
  2. backhoe1

    backhoe1 LawnSite Member
    Posts: 41

    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.
  3. 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.
  4. Ramairfreak98ss

    Ramairfreak98ss LawnSite Silver Member
    Posts: 2,210

    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.
  5. Stillwater

    Stillwater LawnSite Platinum Member
    Posts: 4,834

    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
  6. Albery's Lawn & Tractor

    Albery's Lawn & Tractor LawnSite Bronze Member
    Posts: 1,674

    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....
  7. Marek

    Marek LawnSite Bronze Member
    Posts: 1,385

    I too buy alot off of e bay and have never been hit with sales tax.
  8. LindblomRJ

    LindblomRJ LawnSite Silver Member
    Posts: 2,570

    You ever have the Department of Revenue do its audit?
  9. mattfromNY

    mattfromNY LawnSite Bronze Member
    Posts: 1,581

    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.
  10. Lawnworks

    Lawnworks LawnSite Fanatic
    from usa
    Posts: 5,407

    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.

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