Has Paypal suddenly started charging sales tax?


Is this new, even for interstate purchases, and even between private parties?
Does it apply just to Paypal Invoices?
Has anyone experienced this?
rgs92
Actually there was no law just passed to collect sales tax for interstate purchases.  The law has always been that the consumer is required to pay the sales tax, if any, on goods they purchase from out of state in cases where the vendor does not collect the state sales tax.  A recent SCOTUS decision ruled that it was permissable for states to force out of state vendors to collect sales tax for the state in which the consumer resides.  Some states, like North Dakota, have already provided free software to mail-order companies that will calculate, collect and submit sales taxes on purchases made by ND residents.  I expect other states to follow.  The state sales tax was always applied to out of state purchases, but prior to this ruling, mail order vendors could not be compelled by the states to collect those taxes.  That is over.  And you can thank Amazon for that one, by the way.
It's real. I had to pay state sales tax last year on my PayPal sales. They submitted a tax form to my state government.
I bought speaker cables yesterday from my pay pal account, no Florida tax was added
The Supreme Court's internet Sales June tax ruling Is billion-dollar boon for states The U.S. Supreme Court says states are allowed to collect sales taxes from online retailers that don’t have a have a physical presence in their borders. By a 5-4 vote in the case South Dakota v. Wayfair, the majority overturned the court's 1992 decision in Quill v. North Dakota, which had affirmed the “physical presence” test for state sales-and-use tax collections. This stinks big time. What will they tax next, breathing air?

@gnason - Like I posted above, this was largely the doing of Amazon.  When they started to add fullfilment centers in many states, they lost their competitive advantage of not having to collect sales taxes for most transactions.  In order to even things up with smaller e-tailers, they pushed hard to overturn Quill v, ND.  Just keep in mind that consumers were always responsible for paying sales taxes to whatever states they made a purchase from.  Quill v. ND just prevented states from compelling mail order retailers to collect and submit sales taxes from out-of-state customers.


@mantaman - IIRC, Florida has no state sales tax, just as some other states, like NH.