Quote:
Originally Posted by JollyElm
On a side note, to make the offer referenced above, I had to add money to my account balance. When I went to do so, I was charged sales tax on top of the amount added. How is that right?? I added money to my account, I didn't buy anything, so how is that legal??
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The answer is that you are purchasing an item, "store credit". Rather than tax every transaction going through person-to-person sales, they tax you on the original store credit bought. You are likely paying a lot less sales tax this way, especially if you're doing any flipping on the site at all. There are many states that tax you on shipping costs as well. So since those are now umbrella'd under the original store credit purchase, it goes back to the COMC theory that their various consignors are trading cards for store credit and then trading store credit for cards.
Check with your own financial advisor as to whether or not you agree, but that is their rationale. Check your email history and the COMC blog posts to explain it. They wrote blog posts every time a new state starting taking sales tax.