Switching from E-Bay doesn’t guarantee avoiding the Sales Tax. As few as 200 transactions for many States will now force sellers to have to pay and the regulations vary from State to State so consider that when you’re trying to make a second transaction with a seller for a single cheap item. That one 50 cent add on comic may reduce the sellers chance to make sales to your State for someone who wanted $50 worth later in the year if they are getting near the threshold and not trying to go over and be forced to have to spend the next year dealing with your State and whatever other licenses and fee’s they force us to add on to stay legal, collect, file and pay. Many States are even trying to have it retroactively applied so the seller may end up responsible, even if they didn’t collect it for the first 199 sales.
That list changes regularly as more States get laws passed or change their thresholds for qualification.
Sellers trying to dump large numbers of comics cheaply will also find they need to be careful and at least make sure E-bay or some other Nexus is handling that end for them.
As a consumer you can always try lobbying your States Representatives to have them do nothing or increase the limits so more small sellers stay under the thresholds but now that the snake is out of the bag I doubt it’ll ever get put back now.
There’s a whole lot of questions out there right now that have no direct answer or worse, 50 different answers from 50 different States. Here’s a few of the one’s off the top of my head.
If E-Bay is collecting it and you have 6 direct sales into those States outside of E-Bay, do you now have to file just those 6, all 206 or nothing because you had less than 200 outside of E-Bay?
Would E-Bay be willing to waive the last month or two of their one year contract fee’s if you need to shut down the last couple months of the year to avoid going over the limits for one or more States?
Can E-Bay come up with an option to block sales to some States you select if you’re in danger of going over the limits?
If the PayPal accounts showing an address in one State, the shipping destination is to another State and neither are the State you’re in who gets the credit for the transaction and paid the Sales Tax?
I’m already seeing setup fee’s for registering to pay some of the States the money they now say we HAVE to collect. How many more are going to be piled on and how long before each State starts wanting a separate business license and fee to go along with it?
Are you going to be able to handle audits from your home or will they have the power to force you to travel to their State for the audits?