Dear Ina,
I have read your site for many years. I saw something that did not look right to me and I thought it might be of interest to you.
I recently placed my quarterly supplies order with eBay. I receive $25 towards supplies, four times a year.
I ordered the pack of 3 inch thank you stickers . . . Not something I would normally choose but it was right before the coupon expired and I was half asleep.
The cost of this item was $21.06. I understand that any unused balance is forfeited . . . In this case, $3.94.
My total came to $22.93 with $1.87 in sales tax. The sales tax was the remaining balance and charged to my VISA card.
New York State sales tax law can be a bit confusing . . . It is my understanding that if a manufacturer’s coupon is used then the full amount of the product is subject to tax based on the regulations for the item(s). This holds true for any discount issued that is being repaid to the store.
When store-issued coupons or rewards are used to lower the cost of an item and/or order, the balance after deductions is what should be taxed.
If my understanding of this is correct, my order should have been zero. eBay has therefore collected tax that should not be remitted to NYS.
I cannot be the only person this is happening to. Not all cases will result in a zero-order but if ordered boxes that cost $50 and applied my coupon, the tax should only be collected after the $25 coupon . . . And based on what happened here and on earlier supply orders, I do not believe eBay is calculating sales tax correctly in New York State.
I am attaching links to the NYS Department of Taxation as well as some screenshots of my order.
I appreciate your time and consideration.
Stay safe.
M.
