I wrote one of my senators here in NY the other day about this.
I can't imaging what an incredible financial windfall this has been, for so many states. Yet,I've seen no benefit here.....
@thebeav said:
I wrote one of my senators here in NY the other day about this.
I can't imaging what an incredible financial windfall this has been, for so many states. Yet,I've seen no benefit here.....
I tried to buy something listed by Modern Coin Mart off eBay today. Same price as the cc price on the website. It was over the threshold as to what needs taxes in my home state --pm coins including bullion is not taxed if the total invoice is over $1000 (so you could buy several fractionals, mix/match coins, etc). So, over $1K, no sales tax.
Low and behold eBay applied the tax in direct non-compliance with the law. Needless to say I did not hit 'complete transaction'.
Next, I got a pop up from eBay requesting feed back, and thus informed them of their illegal tax collection scheme (might have used a few f-bombs) and pointed out they lost a sale. Then messaged MCM via the eBay system to tell them they lost a sale due to eBay's screw up. I figured the average seller has no clout but MCM moves a lot of stuff there and might have some ability to talk to a human being.
Then I popped over to the MCM website and bought the dang thing. No tax there! Plus I decided to save the 2.9% and use a non-credit card based payment. Win for me! MCM really did get the sale. I got to pop off to eBay with some justified foul language, and MCM MIGHT be able to get eBay to 'look' at the problem if so desired. MCM wouldn't know I was the same interested party after all.
It was however infuriating to see such a clearly incorrect application of 'sales tax'. Guessing eBay would skim it. Shoot both Heritage and Stacks started collecting tax as required for my state...and IIRC they both accidentally said 'below $1000' was tax free vs. 'above $1000' in their emails. I sent them both polite notes and they both corrected--not sure if it was really me but I'll take that as a win. Large companies, implementing the law, and making it easy to give them feedback when an error was noted. Vs. eBay.
i lost a $14,500 sale from a buyer in Mass. ebay charged sales tax and wouldnt take it off. i talked to the buyer told them i listed the item on my website for the same price.....no sale as ebay told him even with a credit card purchase from my website thru paypal he would not have buyer protection.
I will send a sales tax tebate form in January to the State of Utah for sales taxes that sleezebay collected. Utah doesn't collect sales tax on bullion and legal tender coin or currency.
@airplanenut said:
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
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.
!! 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...
I live in Oregon and have no sales tax. I am still getting charged for it in many instances and having to get it refunded etc. Nothing that I buy online requires me to pay sales tax.
I never thought I'd have to watch coins and bullion. I just bought a LOAD of coins I hope I didn't pay.. ah gee what a disaster.
My customers don't have to pay me sales tax, and I don't have to pay the state sales tax, but I am not a metals or coin dealer. If I go to Washington and make a sale on a library computer, I owe Washington sales tax. My accountant told me not to worry about it if I'm staying a day or less and get purchase orders via email.
How would the Committee of 5 feel about this? Surely it make their stomach churn. Here in the Consumption State, aka CT, if you don't meet the $1k threshold you're paying a sales tax.
From the JM Bullion site:
The State of Connecticut requires the collection of sales taxes on certain products sold by JM Bullion and delivered to a Connecticut address. These taxes must be collected on (1) platinum, palladium, and copper products; (2) certain numismatic coins; (3) accessory items; (4) processed items; and (5) any single sales transaction comprised of gold and silver products for which the transaction amount is less than $1,000. All other products sold by JM Bullion are exempt from these taxes.
The following definitions apply to products on which taxes must be collected in Connecticut:
Certain Numismatic Coins. Precious metal coins that are not, or never were, used as legal tender of any government of the world.
Single Sales Transaction. Determined per invoice, and not on a line-item basis.
Accessory Items. Items such as holders, tubes, coin flips, and apparel.
Processed Items. Precious metals that have been processed by third parties into items that are valued on more than their precious metal content, such as statues or colorized coins.
I believe I would have mentioned Paypal's buyer protection(as well as the credit cards). You do know ebay is trying to steer folks away from Paypal as they implement their new payment processing. If I understand correctly it will be required for all ebay transactions in the next year or so.
@segoja said:
same experience but on the flip side
i lost a $14,500 sale from a buyer in Mass. ebay charged sales tax and wouldnt take it off. i talked to the buyer told them i listed the item on my website for the same price.....no sale as ebay told him even with a credit card purchase from my website thru paypal he would not have buyer protection.
Comments
I wrote one of my senators here in NY the other day about this.
I can't imaging what an incredible financial windfall this has been, for so many states. Yet,I've seen no benefit here.....
Likely you won't.
But you already know that.☹️
I tried to buy something listed by Modern Coin Mart off eBay today. Same price as the cc price on the website. It was over the threshold as to what needs taxes in my home state --pm coins including bullion is not taxed if the total invoice is over $1000 (so you could buy several fractionals, mix/match coins, etc). So, over $1K, no sales tax.
Low and behold eBay applied the tax in direct non-compliance with the law. Needless to say I did not hit 'complete transaction'.
Next, I got a pop up from eBay requesting feed back, and thus informed them of their illegal tax collection scheme (might have used a few f-bombs) and pointed out they lost a sale. Then messaged MCM via the eBay system to tell them they lost a sale due to eBay's screw up. I figured the average seller has no clout but MCM moves a lot of stuff there and might have some ability to talk to a human being.
Then I popped over to the MCM website and bought the dang thing. No tax there! Plus I decided to save the 2.9% and use a non-credit card based payment. Win for me! MCM really did get the sale. I got to pop off to eBay with some justified foul language, and MCM MIGHT be able to get eBay to 'look' at the problem if so desired. MCM wouldn't know I was the same interested party after all.
It was however infuriating to see such a clearly incorrect application of 'sales tax'. Guessing eBay would skim it. Shoot both Heritage and Stacks started collecting tax as required for my state...and IIRC they both accidentally said 'below $1000' was tax free vs. 'above $1000' in their emails. I sent them both polite notes and they both corrected--not sure if it was really me but I'll take that as a win. Large companies, implementing the law, and making it easy to give them feedback when an error was noted. Vs. eBay.
same experience but on the flip side
i lost a $14,500 sale from a buyer in Mass. ebay charged sales tax and wouldnt take it off. i talked to the buyer told them i listed the item on my website for the same price.....no sale as ebay told him even with a credit card purchase from my website thru paypal he would not have buyer protection.
so we all lost
Ike Specialist
Finest Toned Ike I've Ever Seen, been looking since 1986
I will send a sales tax tebate form in January to the State of Utah for sales taxes that sleezebay collected. Utah doesn't collect sales tax on bullion and legal tender coin or currency.
I never knew I had so many friends and family members. ;-)
I live in Oregon and have no sales tax. I am still getting charged for it in many instances and having to get it refunded etc. Nothing that I buy online requires me to pay sales tax.
I never thought I'd have to watch coins and bullion. I just bought a LOAD of coins I hope I didn't pay.. ah gee what a disaster.
My customers don't have to pay me sales tax, and I don't have to pay the state sales tax, but I am not a metals or coin dealer. If I go to Washington and make a sale on a library computer, I owe Washington sales tax. My accountant told me not to worry about it if I'm staying a day or less and get purchase orders via email.
How would the Committee of 5 feel about this? Surely it make their stomach churn. Here in the Consumption State, aka CT, if you don't meet the $1k threshold you're paying a sales tax.
From the JM Bullion site:
The State of Connecticut requires the collection of sales taxes on certain products sold by JM Bullion and delivered to a Connecticut address. These taxes must be collected on (1) platinum, palladium, and copper products; (2) certain numismatic coins; (3) accessory items; (4) processed items; and (5) any single sales transaction comprised of gold and silver products for which the transaction amount is less than $1,000. All other products sold by JM Bullion are exempt from these taxes.
The following definitions apply to products on which taxes must be collected in Connecticut:
Certain Numismatic Coins. Precious metal coins that are not, or never were, used as legal tender of any government of the world.
Single Sales Transaction. Determined per invoice, and not on a line-item basis.
Accessory Items. Items such as holders, tubes, coin flips, and apparel.
Processed Items. Precious metals that have been processed by third parties into items that are valued on more than their precious metal content, such as statues or colorized coins.
I believe I would have mentioned Paypal's buyer protection(as well as the credit cards). You do know ebay is trying to steer folks away from Paypal as they implement their new payment processing. If I understand correctly it will be required for all ebay transactions in the next year or so.