Hi Katie,

No type of tax license is required to sell on eBay (or anywhere else) if you are like most of us, a hobbiest. If your chip sales are conducted as retail business, you should already have a retail sales tax license. Then, you have to add local and state sales taxes to your eBay auction sales conducted within your state. Many local and state taxing authorities are trying to make interstate mail or internet sales taxable. Fight that idea forever! The bookkeeping nightmares involved would put a lot of small businesses out of business. An example, I live half a mile outside the city limits of Colorado Springs. The sales taxes charged by retail businesses are 2.6% more within the city limits than they are in the unincorporated are that I live in. If interstate sales taxes were to be imposed on every retail sale, I as a small business man would have to pay someone to find out what sales tax I need to charge on every sale, track and report these sales to each different taxing district, then pay each different taxing district at that district's required interval (some are monthly, some are quarterly). All that such taxing would do is drive the price of ALL retail goods sold to another state.

If it is this complicated for me to try to explain it, imagine trying to collect, record, report, and pay it!

Bob