The sneaky tax on second-hand goods that deprives buyers of vital savings

Buyers often unknowingly pay sales tax twice on the same item due to an unfair quirk in the system.

Thrift stores have grown in popularity in recent years as households search for bargains and opt for more sustainable alternatives.

But resale giants have highlighted how consumers are being deprived of a vital economy.

This is because sales tax is still charged on items purchased second-hand, even if it was already paid on the original purchase.

Resale giants such as The RealReal, Vestiaire Collective and ThredUp are now backing a petition calling for the elimination of double taxation.

Rachel Kibbe, 43, has become the face of the movement. The New York-based coalition, American Circular Textiles, advocates for sustainable fashion and circularity in the United States.

Kibbe, along with the coalition’s 40 member organizations, authored the petition to U.S. state lawmakers asking them to consider eliminating sales and use taxes on second-hand clothing on a state-by-state basis.

“This practice stifles sustainability and stifles companies trying to do the right thing by reselling products,” Kibbe told DailyMail.com.

Young people who have turned to second-hand clothes are also complaining about the price hike after the addition of the additional tax.

A user on Instagram asked, “Why do I pay sales tax on used items at a thrift store?” »

Another said: “If we really cared about the environment we wouldn’t tax second hand stores so people would be encouraged to recycle their goods.

“One man’s trash is another man’s treasure, but in the United States, capitalism rules and consumerism fuels it.”

One user from

“They’re lucky the used crap doesn’t just end up in a landfill. Assholes are lucky we reuse thrift stores, Etsy, eBay…stop taxing us!!!!’

Clothing is only tax-exempt in four states: Delaware, Montana, New Hampshire And Oregon. In all other states, clothing is generally subject to sales tax, with occasional exceptions.

The additional tax is not applicable in all states, as some have specific exemptions for certain types of handheld devices or transactions.

In California and Tennessee, some nonprofit and thrift organizations that provide clothing to people in need are tax-exempt.

In Ohio, Virginia, and South Carolina, some protective clothing may be tax-exempt, and in Idaho, exceptions for free clothing for charities may apply.

Despite tax complexity, the second-hand clothing market continues to grow.

ThredUp — an online thrift and consignment store — revealed in its annual report that U.S. consumers spend nearly half of their clothing budget on second-hand items.

The report also notes an 18 percent increase in the global second-hand market last year, reaching a valuation of $197 billion.

Second-hand clothing sales are on track to account for a tenth of the global fashion market next year, as the cost-of-living crisis and sustainability concerns drive consumers to seek out second-hand clothing. second hand, The Guardian reported.

ThredUp estimates that the U.S. second-hand market will reach $73 billion by 2028, an average increase of 11% per year.

For sellers, offering pre-worn products is an easy way to make money.

Resale can also benefit local communities by sourcing items from small businesses, flea markets or yard sales.

But even as the resale market grows, consumer culture reigns supreme.

A staggering 85 percent of discarded textiles end up in landfills, with 17 million tons of textile waste accumulating across the United States.

The petition claims that removing the tax will encourage the reuse and repurposing of clothing to reduce the environmental impact of the fashion industry.

The document also claims the change would also benefit low-income individuals and families.

If the secondary clothing tax were removed, Kibbe believes small businesses like thrift stores, alteration services and repair shops would thrive “by providing essential services and creating jobs.”

Kibbe said: “Ending double taxation is not only the right and fair thing to do, it will also boost economic growth and reinforce the trend towards buying good quality clothing that can be reused or repaired rather than thrown away in ever-increasing piles. of textile waste.

Kibbe and ACT created the petition on National Second Hand Day, August 25.