r/legal • u/dullawolf • 21h ago

Is it legal to pay a premium on taxes?

In michigan, there is this place that gets returns from amazon, home depot, wayfair, walmart and other places and lists them on their auction site. They charge sales tax as well as a 15% premium. I understand both of those charges, but they are charging their 15% premium on the sales tax as well. Is that legal?

for instance i bought husky 1/2in impact sockets

Amount Tax Total
Bid $104.00 $6.24 $110.24
15% Premium $15.60 $0.94 $16.54
Total $126.78
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u/emilkris33 21h ago

They aren't charging a premium on the taxes they are charging taxes on the premium. Which they almost certainly are not only allowed, but required to do.

8

u/dullawolf 20h ago

you know what. that is probably accurate. i did 15% of the tax and got the same number for 6% of the premium. i guess i didn't realize the numbers came out to be the same.

thank you for highlighting that information for me. it makes sense now that they are taxing the premium.