Update on eBay Charging Sales Tax on Coins/Bullion
airplanenut
Posts: 22,243 ✭✭✭✭✭
First off, I am not trying to make this thread political in any way. If you want to debate whether sales tax should be charged on coins/bullion (or anything else), go somewhere else. I'm simply passing along a message that I think is valuable to know.
eBay started collecting sales tax automatically on January 1 (at least for some states). In doing so, they ignored sales tax exemptions, and if you go to purchase something right now with an address in an affected state, sales tax will be charged on anything. Many states--my state of Washington included--have sales tax exemptions on some/all sales of coins and bullion, so this is big problem as eBay sales are now actively charging sales tax when there is none on the books.
I spoke with an eBay rep today (I may not have a direct line to the CEO, but I do sell enough that I get more helpful reps than standard support) who said a memo just came out to them about this problem and that a fix is in the works, to be rolled out next week. Will this definitely happen? It's eBay, so I don't know. But I did think it would be useful information to know if you're affected by this.
Jeremy
Comments
Montgomery Ward-Sears Roebuck-Ebay
JK:
Appreciate the update - good to know.
Apmex (corrected) tried to charge me CT taxes that were not due; scotched the deal! I'm not going to pay taxes on coins.
Just on eBay now. I do not see anything with taxes in the prices (?).
Especially if they are not applicable!
Some of the big bullion dealers started in November charging sales tax for those states that have one on bullion or coins, if you happen to live in that state (Thank you Supreme Court ---NOT)
It's pretty sad they didn't have everything right before January 1. I'd expect more from a giant company like eBay.
Great transactions with oih82w8, JasonGaming, Moose1913.
I think they are rolling in states, so yours may not yet be affected.
So who picks up the CC fee when sales taxes are paid by CC because I bet the states want their full percentage owed to them when eBay or whomever collects and remits STs?
I'd love to have the CC fees that Walmart probably eats for sales taxes collected from a week's worth of all of their taxable sales from all of their stores.
I purchased some items in the last couple of weeks....no sales tax was applied or attempted to be applied.
I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment
this is going to take a toll on e bays bottom line, share holders beware-I probably would stop buying coins completely if I paid sales tax, the margins are thin enough already
Thanks for the heads-up !!!
Wow
That's the beauty of the BST. It's free and there's no sales tax.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
Pa. Is exempt for clothing, bullion coin etc. I've never been charged tax on bay for exempt items. Apmex bpm etc. Many transactions.
No state should be charging taxes on US issued eagles and bullion; it would be like states taxing US issued money in other forms; the only effect is to discourage the buying and selling of coins. https://www.usmoneyreserve.com/blog/gold-bullion-act-1985/ https://www.govinfo.gov/content/pkg/STATUTE-99/pdf/STATUTE-99-Pg1177.pdf
While Scotus looked at the right of states to collect sales taxes in general, have they ever had the law of their taxing US issued coins appealed to them?
Strange, they are not charging sales tax for me then again in the commonwealth coins and bullion are exempt. God bless the Commonwealth and god bless eBay.
First they would have to wake Ruth up.
I stopped buying from Heritage cold-turkey two years ago when they began to collect tax from NJ residents on all auction purchases. I think there will be a VERY negative impact on auction companies of all types.
Those who want a painting or coin enough to pay 5 million for it might not care, but the average collector who buys anything that need to be re-sold in the future is going to reduce his bid to reflect the surcharge imposed by the added sales tax, or stop buying online, or buy at shows (which could have a resurgence).
Commems and Early Type
This is very alarming.
Texas where I live Coins and bullion exempt. I will be on lookout for this. I wonder if this reason Jan sales slow.
If they hit me on this I will shift that buying elsewhere -GC / shows I set up at. I buy non numismatic items on eBay too but this is small potatoes vs coins and wb taxable here.
I don’t understand why they would do this unless advised by counsel. If so another move by the establishment tighten screws further just like they have with the new world of work b4 they replace workers with AI / Synths. It is like an insidious cancer.
Thanks for warning wb on lookout.
I'd guess simplicity/laziness. I know WA best (it's where I live and have a business). Sales tax rates depend on city/county, so there are an enormous number of potential rates. I'm lucky since I only sell tax-exempt items, so I've never really had to worry about how to charge tax, but I'm still not sure if, when mailing an item, the rate charged is based on the seller's location or the buyer's (for a store it's obviously based on where the store is). If the latter, I'd have to search every buyer's address to figure out the right tax rate. If eBay is trying to figure it out, since they don't have a WA location, surely they'd have to charge based on the buyer's location. Add to that every state has various exemptions, and then they have to figure out which items in which categories are actually exempt (a coin in a coin category is exempt, but maybe a book on coins in a coin category isn't exempt). It's a really hard problem to solve; the easy answer is to just say "tax it all" and we're covered, though that obviously has its own negative effects.
I can see an entire network of information on ebay to workaround the taxes.
For example, In State A, US Coin sales not taxed, but foreign sales taxed: Buyer messages seller of $600 in foreign to relist a generic listing (Box of coins) in the US section to avoid taxes.
State B: No tax of $1500. Buyer messages seller to raise price to $1600 on an $800 sale, then after the sale, seller refunds through ebay to bring the cost back to $800, no tax.
I wonder if ebay will charge (6% 8% 10%) fee on taxes.
As far as being charged sales tax even with having a resale permit, as least in Texas, where I do have a resale permit, for the items that should be exempt, I can ask The seller can either grant the refund or give you Form 00-985, Assignment of Right to Refund (PDF), which allows you to file a refund claim directly with the Comptroller.
When Vermont started taxing coins, people went to New Hampshire, really this is just counterproductive as when it happened in Ohio.
I've been in the research/consulting industry for almost 40 years and my work has never been taxable. We were just notified that 4 states have made the work taxable if it's delivered to a person in their state. They must just be getting desperate.
Ebay is charging me sales tax on the shipping supplies I buy with my store coupon. And no the coupon will not pay the taxes.
Commonwealth of PA does not tax pensions, SS included. I believe 2nd largest retired population in US. However, it has the highest gas tax in country.
I say change the top tax rate on any money earned over 10 Million to 70%.
Taxation is good for society.
So... how does this affect the seller?? Since ebay is now collecting sales tax (supposedly on behalf of the seller, since it is the seller that traditionally is the one who has to do so), who has to file the paperwork at the end of the year?? Will ebay notify the seller on amounts collected for each state... and the seller will now have to file the paperwork for each of the states?? What a mess, if so...
It's a from now on sorta thing. Most people weren't whacked for ST last year. Try to buy ASEs today and see what happens. Let us know.
Is there a way to abort the eBay transaction if you don't want to pay the tax?
Though I suppose... technically... sales tax is still due on the item.... just not enforced by our host at this time. There may come a time where buy-sell-trade forums may become affected by this mess also.
Keeper of the VAM Catalog • Professional Coin Imaging • Prime Number Set • World Coins in Early America • British Trade Dollars • Variety Attribution
Why should our host have ANY involvement since they are neither a buyer nor a seller? If/when appropriate the onus is still on YOU AS A BUYER to remit sales tax to YOUR state. The SCOTUS decision doesn't change that.
And neither is ebay a buyer nor a seller; just a portal through which transactions take place. Yet they see the need to be collecting sales tax. Just sayin' that this SCOTUS ruling will take time to shake out the repercussions...
But of course ebay takes a fee for providing the portal for selling... so that may be a factor that would require the collection of sales taxes, while a forum buy-sell-trade does not do so.
Way to get the ball rolling, Jeremy!
Dave
The only change needed for ebay is to associate your account with your state sales/use tax exemption number. That will also keep the state people happy with ebay.
Collector coins are identical to any other product or commodity. Unless there is a specific exemption it is taxable in most states. Of course, everyone could move to Alaska, Delaware, Montana, New Hampshire, or Oregon.
Do not hit the PAY NOW button.
I doubt that eBay sees a need to collect ST, but rather they are being forced to. PCGS doesn't need the BST to survive, but eBay needs buyers and sellers.
Yes we certainly take it in the shorts on the gas tax, everyone is going to get it one way or the other I suppose but they are not getting it on coins and bullion. Also helps to live 7 miles from the Ohio border, gas is typically 40 cents cheaper so we just fill up over there.
Edit: just put 100 eagles in the shopping cart, no tax being collected at checkout, tried both Bullion Exchange and Apmex. Didn't proceed with sale however because paying $2+ over spot for eagles isn't my thing. lol
In DEC, I was selling some $20 gold pieces under a promo on E-Bay.
I cancelled my unsold coins after about a week after I became aware of the Sales tax changes.
I started doing the research and saw most sates didn't tax the gold coins (some had a $1000 limit to exclude the tax, some had a 90% content threshold, some didn't tax the coins period).
Some states had a dollar limit whereby tax had to be collected if sales in the state was above $100,000 others $10,000.
I'm a very small seller so if I never sold more than a handful of coins in any state so a dollar limit isn't a problem. However,
if E-Bay is collecting the tax perhaps E-Bay's total sales are considered when deciding if the amount has been reached?
In summary, I will not sell a coin until i discover what I am responsible to do under current tax law.
My understanding is that they're taking the work away from the sellers. The good is that if you sell something that is taxable, you don't have to worry about collecting/remitting the sales tax. The bad is that if eBay wants to collect sales tax on something that is exempt, there's nothing you can do about it other than not sell that item. So really, the effect on sellers is going to be with buyers changing their habits as a result.
Will both of you quit it? Re-read my first post. No politics. I don't care what you think about taxes. This is specifically about eBay's collecting of sales tax and nothing else. Want to talk politics? Start your own thread.
The shareholders should be angry. This should hurt eBay's bottom line.
well I just placed [erroneously] an order for an AGE which I'm cancelling. no tax
I occasionally get down to MD &DE gas up when I do. BTW DE no sales tax.
Not a bad plan. But..I'm not an attorney and it kind of looks like a digital trail would be created for serious state an federal tax evasion, avoidance and fraud charges. Just my opinion but the schemes are not for me.
Maybe you're in one of the states where eBay has already fixed the glitch.
I'm not sure if it has been covered yet, but would you have to pay sale's tax to your state, or the seller's? Because even if you don't have tax on coins in your state, the seller might, which is where you are buying the coins from. Blah, this whole thing is just going to be a disaster.
I just had two responses disappear in posting so one more time..
Ebay has collected taxes on all my purchases of merchandise except coins and bullion and clothing since Dec.
And had never collected them on merchandise except intrastate prior to the USSC Decision.
!! Maybe both states will want to reach into your pocket. If I recall, my state tax forms state that if I purchase from another state and bring into my state... that I need to pay tax; will have to check to make sure. And... I'm, sure that whatever state the seller is in, they will definitely be wanting their share. What a mess...
May have to give ebay a rest... until I know what I will be liable for, both tax wise and record wise.