Now that ebay collects and remits taxes on my behalf in texas, do i still report the taxes ebay collected on my tax return?

When ebay reports your gross income from sales it includes the sales tax collected by ebay and remitted to the appropriate state.  When you prepare your taxes you will deduct the amount of sales tax ebay has included in your gross sales to arrive at your gross sales minus sales tax.

Thanks for the response.  But do those taxes go on the "taxes" line on Sched C?

If ebay is reporting your gross income to the IRS (see the 1099 that they sent you), then you report the sales taxes that ebay has already sent to the state on line 23 which is "Taxes and licenses".

Don't include the taxes if you are not reporting the gross income on Sch C, but only the net from ebay.