Storage Auctions
Online Storage Auctions => Online Storage Auctions => Buyers => Topic started by: Travis on January 29, 2014, 11:16:23 PM
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AnneV asked: On most of my eBay purchases, I don't have to pay tax on the items. I was wondering if I buy a storage unit online, do I have to pay sales tax?
Anne,
Storage facilities that are located in states that have a sales tax, are required to collect it. Some of the auctions on our site are listed by private sellers. It is at the private sellers discretion as to whether they will collect sales tax and they will usually indicate this in the auction description. If they do not mention sales tax in their description, feel free to contact the seller using our private message system.
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The simple answer is Yes, the storage facility is required by state law to collect sales tax.
There is also a misconception that you don't have to pay sales tax for items purchased online or from other states.
In fact, in Texas (and many other states), the purchaser is required to report out of state purchases and pay the sales/use tax in their home state.
If you're in Texas, you can find the form (and laws) on the Texas Comptroller website.
Yes, there is an exception for personal transactions. However, be careful... as the law also sets guidelines on whether you are just selling your own personal property or if you are buying and selling property with the intent to make a profit. If you are doing the latter, then you are considered to be "in business" and you are required to collect sale tax from the purchaser and remit it to the state.
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If the contents were being shipped to a non-sales tax state then no sales tax would be collected. But since the buyer has to go into the state (or their agent) to pick up the contents, then yes sales tax is to be collected.
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Also, the following states don't have sales tax.
Alaska
Delaware
Montana
New Hampshire
Oregon