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Non-business account holder charges state tax on Ebay for local state sale???

Discussion in 'Off Topic [BG]' started by boriology101, May 10, 2011.

  1. boriology101


    Feb 19, 2008
    I found an ebay seller who charges tax on local CA transaction and I found that he's actually a private collector who doesn't have business account.

    I've never seen such a case that non business account holder charges tax and it looks like he tries to charge tax from buyers for hidden profit. Isn't it illegal? If it is, how risky it is to commit such an action? I am trying to buy stuffs from him but I get very suspicous of his behavior.
  2. MadMan118


    Jan 10, 2008
    Vallejo, CA
    I do believe that without a CA business license he cannot charge sales tax. Charging sales tax on a private transaction between two private parties is tax fraud. I'd report him to ebay and they'll take the proper action.

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