Assuming the seller is not a retailer, and they are selling something used on ebay, and both the seller and buyer live in NJ, who (if anyone) is suppose to pay the tax on the item sold?
2007-04-09 11:41:23 · 4 answers · asked by Do it yourselfer 2 in Business & Finance ➔ Taxes ➔ United States
I've found out that only a person who has registered for a tax id in the state can collect taxes for sold items. That's why a store can charge taxes for used items, but an individual can't. NJ tax law states that clearly. If a sale is made in NJ, it's the buyer's responsibility to report and pay the tax for it to the state unless the seller has a tax id and is making the sale in relation with their business. Otherwise, it's profiteering.
2007-04-10 00:25:44 · update #1
Technically, the seller is supposed to collect state sales tax if you both live in the same state. If the seller does not collect tax, or if the seller and buyer live in separate states, the buyer should claim the use tax on his/her state income tax return. Whether or not the item is used is not relevant. Go to any store that sells used goods and ask not to pay tax. They will laugh at you.
2007-04-09 19:00:41 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You're right. If you're titling it in Washington there is absolutely no reason to pay California tax and the dealer knows that. Talk some sense into him or don't buy it. If you don't buy it and Ebay does an unpaid item case against you just explain to them what you did to us and you'll get out of it. Best of luck.
2016-04-01 06:01:05 · answer #2 · answered by ? 4 · 0⤊ 0⤋
Sales and use tax generally does not apply to USED items. My answer is no one.
2007-04-09 13:29:52 · answer #3 · answered by STEVEN F 7 · 0⤊ 1⤋
the buyers is most often charged taxes up and over again.
2007-04-09 11:45:13 · answer #4 · answered by Pancho D 2 · 0⤊ 0⤋