charging tax in Classified Ads??


I have seen quite a few ads recently from no feedback users selling all sorts of gear, many of it tubes, asking for XX% of tax if you reside in certain states...nowhere in their ad does it state they are a business/dealer/reseller. what do you do?, ask for a tax ID#?..ive noticed this happens a bit on ebay, id like to know if the extra 8% is going to the proper hands.
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Showing 1 response by sean

From what i've been told, many States are working on or have enacted various taxes having to do with interstate transactions. Due to the massive increase in out of State transactions brought upon by the internet and mail order businesses, they are losing tax revenue. As such, the days of being able to buy something from a storefront ( aka "legit business" ) from out of State and not pay taxes will soon be over. Obviously, buying goods from an individual that is not a licensed retailer will not be susceptible to such taxes. That is, until we go to a cashless society. Sean
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