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.
128x128justlisten
Actually, they may be required to collect tax in any state they are incorporated in and they do not have to be residing in that state. I would ask them to fax me they're state tax ID license, then you can be reasonably assured it is legit.
Get used to seeing more of this. The states are desperate for more revenues, so they are getting far more aggressive in enforcing their sales/use tax rules. Basically if the seller has a physical presence in your state, such as a store, a warehouse or an office, they are obliged to collect sales tax from you to pay to your state.

This is not to say that some crooked sellers may not pay the taxes they collect from you over to the state. This is called tax evasion and often results in jail time when they get caught.
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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I know a lot of poeple have different oppions on this on. The state sales tax on internet sales moritorium was extended till the fine folks on capital hill can come up with a sollution that benifit all. I work for a well estabished company with 70 employes and eight branch store`s two year`s ago they dove into internet sale`s last year we did 1.75 M in internet sale`s.Our internet sale`s are a small portion of our business, sale`s we would have not had. Since we are only in WA state Wa state customer`s only pay sale`s tax since we have a BRICK AND MORTER STORE in this state. We DO NOT collet sales tax if it is a out of state internet purchase only shipping applies in almost all case`s Let me repeat we are a reputable business that does what the laws require and for now they are tax exempt. David