Charged sales tax on a flat rate freight item

[zukdj]

I purchased a large item that has to be shipped via flat rate freight on eBay, I paid for the item and then realized there is a difference of $22.80 in cost, the invoice sent from the seller is a total of $468.60 ($170 item + $13.60 sales tax + $285 flat rate freight shipping = $468.60) however when I paid the cost charged is $491.40. Freight is a flat rate charge and sales tax cannot be charged on shipping, how do I get my $22.80 back from eBay? Is there a specific way I can contact eBay to get this credited?

[albertabrightalberta]

It depends on your state. Some states require sales tax on shipping. 

What state are you in?

[monica-sells]

sales tax in many jurisdictions is taxable.

Is your recipient in a "tax-free" jurisdiction where shipping is exempt?

edit: I apologize...YOU are the recipient...

is your location "exempt" from sales tax on shipping when it is a line item charge?

[zukdj]

Albany, NY sales tax on the item is 8% however shipping has never been taxed previously.

[eburtonlab]

Shipping is indeed taxable in NY if the item itself is subject to sales tax.

https://www.taxjar.com/blog/retail/shipping-taxable-in-new-york

[albertabrightalberta]

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@zukdj wrote:

Albany, NY sales tax on the item is 8% however shipping has never been taxed previously.

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You may not have noticed it but you've probably paid tax: 

New York: Shipping, handling, and delivery charges on taxable sales are generally taxable in New York, while shipping, handling, and delivery charges for nontaxable sales are generally exempt.

[zukdj]

Have never paid sales tax previously on flat rate freight, is this something new? Always have only paid sales tax on the tangible item.

[eburtonlab]

There do not appear to be any recent changes in NY's law, at least according to this bulletin:

https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/shipping_and_delivery_charges.htm

Whether freight is taxed may depend on whether its cost is included in the original purchase or arranged separately from the purchase.

"Sales tax is not imposed on transportation services. Therefore, if a delivery service is sold independently from the sale of the taxable property being transported, the charge for the delivery service is not taxable. For the sale of the delivery service to be independent of the sale of the property, the customer must have arranged for the transportation and the customer must be charged for the delivery on a separate invoice."

[zukdj]

OK, I'm not wasting my time fighting it for the $23, I just think it's not a fair position to be put in because eBay wins in the end and costs are already ridiculous on eBay which is why I no longer sell on eBay, only purchase. The invoice has it broken out separately.

[eburtonlab]

The invoice has it broken out separately.

It may need to be a separate invoice rather than a line item on the same invoice. If you want you can read the actual text of the state law.

eBay does not "win" anything; the sales tax collected is all going to your state.

[monroe67]

". . . I just think it's not a fair position to be put in because eBay wins in the end . . . ."
Yes, eBay does win in the end.  eBay is in business to make money, in the United States' capitalist economic system. 

And eBay does make money even while they obey the laws of the states and nations where they operate.  
Each state of the 50 United States has the right to establish its own sales taxation policies. 
Apparently, your state believes that sales tax on shipping costs is a good source of state revenue.  

If YOU think that's not a fair position, you might like to know that there are five states with no state-wide sales taxes: 
Alaska, Delaware, Montana, New Hampshire, and Oregon, alphabetically. 
I'm sure they'd be happy to have you move there.  Those states are all beautiful at this time of year, though very cold.  

Your original post included the following screen shot:

Did you notice the asterisk (" * ") next to the word "Tax" in the line items of the total purchase?
That asterisk refers you to a sentence below The Math that says "We're required by law to collect sales tax and applicable fees for certain tax authorities.  Learn more"

Clicking on that hyperlink ("learn more") could help you to, well, learn more.