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jhodgson
Any recourse?  I’m being charged $4.19 sales tax on a note that is Exempt from sales tax in Illinois.

Want to increase your knowledge about US small sized currency? Find interesting tidbits about US small size currency:

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Numbersman
That happened to me here in Florida.I called eBay and they agreed it was wrong and corrected it.
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coinfrog
I'm an IL resident and  just got charged tax on my first 2020 purchase, never happened before.  Any advice would be appreciated.
The value of anything is what you can sell it for the same day you bought it.
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coinfrog
Further, can I ask what number you called and how you handled the inquiry?  Thanks - Bruce
The value of anything is what you can sell it for the same day you bought it.
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EyesWideShut
You sure those sneaky politicians didn't repeal the state exemption on you ? 😎
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Numbersman
coinfrog wrote:
Further, can I ask what number you called and how you handled the inquiry?  Thanks - Bruce


eBay's number is 866-540-3229. Just tell them the situation.In FL,there's no sales tax on sales for precious metals or notes (and I beleive in FL it applies to pretty much all currency, numismatic or not) and that's the law so I simply pointed that out to whoever it was I spoke to and they must have quickly looked into it (while I was on the phone with them) and found that I was right.I don't know the tax laws in other states so you may want to google it and get the facts.If you are in an exempt state they should take care of it.
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larry510
Ugh I hate California
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Springfield

I live in FL and bought a note earlier today and was not charged any sales tax. 


Perhaps your particular seller has something wrong with their account. 



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jhodgson
Numismatic items are still tax exempt.

https://www.msn.com/en-us/money/news/online-purchases-that-are-tax-exempt-under-the-new-illinois-law/ar-BBYWpaz?ocid=hplocalnews

Want to increase your knowledge about US small sized currency? Find interesting tidbits about US small size currency:

https://www.facebook.com/American-Paper-Connection-Inc-585643014808093/?ref=bookmarks
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TookyBandit

Sales tax on Numismatic material is not doing the hobby any favors. We’re still riding the gravy train in the Southeast ...while it lasts! 

If eBay eventually charges sales tax across the board, it might drive a little more traffic to local shows. 

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coinfrog
Thanks, jhodgson!
The value of anything is what you can sell it for the same day you bought it.
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luca
According to this table, they are collecting for Illinois as of Jan 1, but not Florida -- however, unlike Heritage, it does not have a chart of which types of items are taxable --

https://www.ebay.com/help/buying/paying-items/paying-tax-ebay-purchases?id=4771#section3

Always looking for low S/N Red Seals / $5 FRNs: 1950a - 1969b

eBay Store

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High Grade Rarities
In the last month, about 20 more states have been added to the ebay list of states that charge sales tax on numismatic purchases. I believe there are 38 total states that charge tax on these types of purchases, and each state has different rates. I have been bombarded with messages from buyers thinking that sellers are the ones adding the tax. Sellers are completely hands off. Ebay adds it the invoice, collects it, and pays whatever state is owed.

Rob, you are a dealer, so it doesn't matter what your state tax rules are, you are exempt. Ebay requires you email them a copy of your state sales tax license, and no tax will be added to your invoices going forward. For those looking for a loophole to avoid paying sales tax, there it is.

If I were an avid collector with intentions of making a lot of online purchases, I would apply for a state sales tax license(which can be done online), and a become a dealer, even if on an extremely small scale. Dealers are exempt from paying state sales tax on inventory. List some cheap stuff on ebay periodically throughout the year so you qualify as a dealer. Even if it's a break even operation, it will be worth the savings in sales tax you will be avoiding. That same license can be filed with all the major auction houses to avoid being charged tax as well.
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luca
Good advice -- Re: Rob, I'm not sure you are affected regardless, as I don't see Florida listed on there.  Maybe a glitch in system? 

Always looking for low S/N Red Seals / $5 FRNs: 1950a - 1969b

eBay Store

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MaineJoe
In the last month, about 20 more states have been added to the ebay list of states that charge sales tax on numismatic purchases. I believe there are 38 total states that charge tax on these types of purchases, and each state has different rates. I have been bombarded with messages from buyers thinking that sellers are the ones adding the tax. Sellers are completely hands off. Ebay adds it the invoice, collects it, and pays whatever state is owed.

Rob, you are a dealer, so it doesn't matter what your state tax rules are, you are exempt. Ebay requires you email them a copy of your state sales tax license, and no tax will be added to your invoices going forward. For those looking for a loophole to avoid paying sales tax, there it is.

If I were an avid collector with intentions of making a lot of online purchases, I would apply for a state sales tax license(which can be done online), and a become a dealer, even if on an extremely small scale. Dealers are exempt from paying state sales tax on inventory. List some cheap stuff on ebay periodically throughout the year so you qualify as a dealer. Even if it's a break even operation, it will be worth the savings in sales tax you will be avoiding. That same license can be filed with all the major auction houses to avoid being charged tax as well.


 Yes good advice Mark, to an extent. Up here in the boondocks of Maine where I am they don't make it that easy. I had my resale license for several years until this internet tax thing came along. Here it's not as easy as buy, sell some and all is good. They want justification of where and what the $$ is spent on, and where their tax $$ is in the end. Turned into a crap load of paperwork to do just to justify that I had spent $200K, but only sold $10K. So in the end I decided my best route was to drop it and just pay the tax(es) as needed. I'm sure regs are different everywhere around the country, so by all means look into it for your area. If it's not a pain like mine by all means do it.
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High Grade Rarities
MaineJoe, Agree, each state has different regulations. I do know a few people that have full time jobs, but casually deal paper on the side on a small scale. They have sales tax licenses to avoid state taxes on purchases, and I haven't heard of any complicated requirements. Maybe Maine is more an exception rather than the rule.
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EarlySmallSizeFanatic
Since they have been charging sales tax, I have confined eBay purchases to A: swinging deals or B: very rare notes at a very fair price. 

I am worried that I am going to be charged sales tax for Massachusetts after I move to New Hampshire, which has no sales tax. 
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MaineJoe
MaineJoe, Agree, each state has different regulations. I do know a few people that have full time jobs, but casually deal paper on the side on a small scale. They have sales tax licenses to avoid state taxes on purchases, and I haven't heard of any complicated requirements. Maybe Maine is more an exception rather than the rule.


 You are right, I do believe this lovely state is an exception, on that point as well as many others. (Don't ask why I am STILL here!)
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Kraig Tripp
On Sunday, I contacted eBay at the phone number listed above. I informed them that I was charged sales tax on a courtesy note purchase. The lady that answered my call said that they would research it and somebody would get back to me within 24 to 48 hours. Today, three days later, I called and had to start from scratch. The lady then proceeded to give me both incident numbers and told me that somebody would get back to me. How hard is it to verify that Illinois does not charge sales tax on Currency and refund my money?
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Numbersman
It's a world gone mad for sure.It happened to me again 2 days ago.Tax,almost $40 worth, added to my invoice, by eBay, in a tax exempt state to a tax exempt account.I called them but it was at 11pm and I fear I got the B-team as they were barely grasping the English language let along my issues.They actually told me to call back the next day when there will be someone there who knew how to help me (I'm not kidding!).So,I called yesterday and spoke with a regular Joe who passed me on to a supervisor.He checked my account and verified,I'm on file with my tax ID# and am in fact exempt.They also agreed with me, and their own website, that FL is tax exempt as well.He told me that he would email the seller with instructions as to how to create the proper invoice.Next thing you know, my problem is solved.I have since made a couple of purchases and they both did not have the tax added.I fear there will be several bugs to work out before it becomes seamless.
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TomTomTomTom
Since they have been charging sales tax, I have confined eBay purchases to A: swinging deals or B: very rare notes at a very fair price. 

I am worried that I am going to be charged sales tax for Massachusetts after I move to New Hampshire, which has no sales tax. 


no worries...just change your shipping address on your Ebay account....I am in Mass...any time I'm going to make a purchase that has any sizable mass sales tax, I just change it to my son's NH address (and then change it back)...no sales tax tacked on...so when you move a simple account change will do it.
Always looking for high quality fractional notes, specimens, proofs, experimentals and anything fractional related
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