Author Topic: Online purchases having sales tax charged on fruit/food items ? ? ?  (Read 612 times)

Epicatt2

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I keep wondering whether those of us who buy plants on eBay and pay via PayPal have any recourse against being charged sales tax on food plants, fruit trees, etc.?

I realize this is possibly different in other US states but, generally speaking, tax is not charged in grocery stores for non-prepared food items.  But at least here in Florida food plants are included on an official state list of non-taxable items.

But the real question is: How to get online business entities like PayPal, eBay, Amazon, etc. to recognize this and vacate the business of charging us sales tax on fruit trees, culinary herbs, vegetables, seeds (for vegetables), etc.

Any ideas?

Paul M.
==
« Last Edit: June 07, 2022, 01:36:23 PM by Epicatt2 »

W.

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Re: Online purchases having sales tax charged on fruit/food items ? ? ?
« Reply #1 on: June 07, 2022, 01:59:15 PM »
Some states, such as Alabama, charge sales tax on everything, including fruit trees and other food plants (and food, for that matter).

As for how to get them to stop doing such things, I think there are two options for you. The first, some sort of class action lawsuit which will make the lawyers involved very rich. The second, which applies specifically for you in Florida, is to contact Governor DeSantis's office and say that woke corporations are funding their wokeness by illegally charging taxes on red-blooded, America-loving Floridian patriots. That second option, given our current political climate, would probably lead to a speedy, if not messy, resolution to this issue.
« Last Edit: June 07, 2022, 09:49:42 PM by W. »

brian

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Re: Online purchases having sales tax charged on fruit/food items ? ? ?
« Reply #2 on: June 07, 2022, 02:26:36 PM »
Interesting, haven't thought about this in a while.

Exempt in Pennsylvania:
    nursery pots?
    • wrapping supplies and containers which are non-returnable to deliver self-produced farm products
    pesticides?  or just services?
    • Pest control services for agricultural purposes
    fertilizer & soil amendments?
    • Fertilizer and chemical additives to be added to soil
    tools?
    • Equipment such as barn shovels, ensilage forks, wheelbarrows and feed carts
    seeds and trees?  not sure why it mentions "purchased with food stamps" here though
    • Vegetable seeds, vegetable plants, and fruit trees purchased with food stamps

D-Grower

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Re: Online purchases having sales tax charged on fruit/food items ? ? ?
« Reply #3 on: June 07, 2022, 03:16:29 PM »
Not sure how to solve this problem. However I'm not super happy being 1099'ed for my eBay and etsy plant sales etc. All my stuff is food plants. Uncle Sam does not, I repeat, does not deserve a piece of my pie for hand produced products right from my yard and two hands. It's absurd let alone taxing of income in the first place. Technically it's voluntary in the tax code anyways but try not to pay and see what happens. At some point this year I should receive 1099's for my online sales for the first time after like a decade of selling online. Obviously there are so many ridiculous things in the USA today I don't know how we the people let this government get so outta control. We are on the precipice of economic collapse and have our rights as Americans on the line at the very same time. Hope y'all are ready to be Venezuela.

The post above about contacting DeSantis is likely a possible solution.
Trying to grow it all!

Jabba The Hutt

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Re: Online purchases having sales tax charged on fruit/food items ? ? ?
« Reply #4 on: June 07, 2022, 03:23:55 PM »
Not sure how to solve this problem. However I'm not super happy being 1099'ed for my eBay and etsy plant sales etc. All my stuff is food plants. Uncle Sam does not, I repeat, does not deserve a piece of my pie for hand produced products right from my yard and two hands. It's absurd let alone taxing of income in the first place. Technically it's voluntary in the tax code anyways but try not to pay and see what happens. At some point this year I should receive 1099's for my online sales for the first time after like a decade of selling online. Obviously there are so many ridiculous things in the USA today I don't know how we the people let this government get so outta control. We are on the precipice of economic collapse and have our rights as Americans on the line at the very same time. Hope y'all are ready to be Venezuela.

The post above about contacting DeSantis is likely a possible solution.

Waiting on you to report back what happens when you don't volunteer payment :P

Kevin Jones

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Re: Online purchases having sales tax charged on fruit/food items ? ? ?
« Reply #5 on: June 07, 2022, 03:24:34 PM »
Here's what the Alabama Revenue Dept has to say about the subject:

ALABAMA DEPARTMENT OF REVENUE - SALES AND USE TAX RULES Code of Alabama 1975, Sections 40-23-31 and 40-23-83
810-6-3-.43. Nurserymen-Sales of Plants, Seedlings, Nursery Stock and Floral Products.

(1) The gross proceeds of the sales of seedlings, plants, shoots and slips which are to be used for planting vegetable gardens or truck farms and other agricultural purposes are exempt from sales and use tax. (Section 40-23-4(a)(22))

(2) Sales of nursery stock and floral products by the nurseryman who planted, cultivated, and harvested said items are exempt from sales and use tax. Sales of nursery stock and floral products not planted, cultivated, or harvested by the seller are taxable (Sections 40-23-2(1), 40-23-4(a)(44), and 40-23-61(a))

(3) A nurseryman who claims the exemption outlined in paragraph (2) must keep sufficient records to document such claims; and, in the absence of sufficient documentation, shall be liable for the sales or use tax due on all sales for which exemption claims cannot be verified by the Revenue Department.


Kevin



RS

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Re: Online purchases having sales tax charged on fruit/food items ? ? ?
« Reply #6 on: June 08, 2022, 09:00:30 AM »
Also in FL. It's not consistent whether sales tax is charged or not. With my Etsy and Ebay purchases, some sellers don't charge while others do. For latest Etsy purchase (FL seller, FL shipping address, bought a white jabo listed as "fruit tree") where I was charged sales tax, I just messaged them asking for a refund. Thanks for pointing this out.

D-Grower

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Re: Online purchases having sales tax charged on fruit/food items ? ? ?
« Reply #7 on: June 08, 2022, 10:02:31 AM »
I wouldn't think the seller is to blame for the taxes charged. I sell on etsy and never intentionally make anyone pay taxes yet some people are just charged with them. Every sales seems to be different. Obviously states make a difference. I'll have to pay attention to whether or not people in FL are being charged sales tax since it's FL to FL. Nonetheless it needs to not be charged to anyone anywhere in my opinion. I'm in the arena of being on the extreme end of rights and freedoms though. Not all people would feel as I do. Voluntaryism in my opinion is the way to go. Full blown free market economic system. Little to no government oversight and the market weeds out bad sellers or products naturally over time.
« Last Edit: June 09, 2022, 05:16:06 AM by D-Grower »
Trying to grow it all!

John Travis

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Re: Online purchases having sales tax charged on fruit/food items ? ? ?
« Reply #8 on: June 08, 2022, 10:42:41 AM »
Maybe try reaching out to the person directly. Ebay applies tax to some stuff, but if you do direct sales with someone it's unlikely to be an issue. I would rather sell directly as ebay takes about 13% off the top so maybe try reaching out to a seller save everyone some money.
John

RS

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Re: Online purchases having sales tax charged on fruit/food items ? ? ?
« Reply #9 on: June 08, 2022, 12:01:30 PM »
Just got a sales tax refund after contacting the seller and Etsy, pretty quick and easy.

Another possible recourse is disputing the sales tax charge with your credit card company. Most will automatically credit any disputes under a certain limit (I believe $10 or $20) and takes about a minute to do online.

W.

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Re: Online purchases having sales tax charged on fruit/food items ? ? ?
« Reply #10 on: June 08, 2022, 01:29:49 PM »
I have never sold on Etsy before, so I am unsure how its sales tax collection works, but Amazon and eBay sellers have no control over sales tax collection on those sites. It is no use contacting sellers on those sites about sales tax issues; you are doing nothing but hassling us over something we can do nothing about. Besides, we have our own issue with sales tax collection, particularly on eBay.

Kevin Jones

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Re: Online purchases having sales tax charged on fruit/food items ? ? ?
« Reply #11 on: June 08, 2022, 04:31:54 PM »
My interpretation is...
From the State's point of view... they want to collect sales tax from any sale made within the State to a customer also within the State.
Here in Tuscaloosa it's 10%... which is split between the State, the County and the City.
And if you grow and sell your own plants/trees/etc... as many of us do... in-state sales are exempt from sales tax.
But... If you buy wholesale and sell them retail they are taxable.
And if they are sold and shipped to another State through Ebay... Ebay will collect any Sales Tax and distribute it to said State.
Needless to say... You need to keep good records... just like income tax... in case you are ever audited/questioned by the State/County/City.

Kevin


« Last Edit: June 08, 2022, 07:36:33 PM by Kevin Jones »

W.

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Re: Online purchases having sales tax charged on fruit/food items ? ? ?
« Reply #12 on: June 08, 2022, 05:37:40 PM »
My interpretation is...
From the State's point of view... they want to collect sales tax from any sale made within the State to a customer also within the State.
Here in Alabama it's 10%... which is split between the State, the County and the City.
And if you grow and sell your own plants/trees/etc... as many of us do... in-state sales are exempt from sales tax.
But... If you buy wholesale and sell them retail they are taxable.
And if they are sold and shipped to another State through Ebay... Ebay will collect any Sales Tax and distribute it to said State.
Needless to say... You need to keep good records... just like income tax... in case you are ever audited/questioned by the State/County/City.

Kevin

Your taxes are higher in Tuscaloosa than in North Alabama. They are either 8 1/2 or 9%, depending on which incorporated city you are in or 6% in unincorporated county areas. eBay charges 8% tax on purchases I make, regardless of where the seller is or what I buy. Amazon does the same, except they also charge sales tax on shipping, which eBay does not. Other sites have varying rates between 4 and 8%, inclusive or exclusive of the shipping costs.

kittycatus

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Re: Online purchases having sales tax charged on fruit/food items ? ? ?
« Reply #13 on: June 08, 2022, 06:44:42 PM »
Blame your state from making ebay and etsy charge you sales tax. Not all states require ebay and etsy to charge sales tax. Contacting Desantis about this problem won't do you any good cause he is the guy who upholds and demands the tax!

RS

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Re: Online purchases having sales tax charged on fruit/food items ? ? ?
« Reply #14 on: June 09, 2022, 08:34:48 AM »
What about a note at the bottom of the listing that sales tax is charged by Amazon/eBay/Etsy and to contact them if you have been incorrectly charged sales tax for an item that is exempt from sales tax in your state.

It wasn't my intent to hassle anyone, just not be incorrectly charged sales tax. It doesn't seem right for that money to be pocketed by them.

 

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