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Which state has the best "model law' for sales tax exemption on coins and bullion?
DMWJR
Posts: 5,975 ✭✭✭✭✭
I've looked up various states, and they range from non-existent or vague all the way to extremely complicated.
Which state has the most inclusive and most simple exemption from sales tax?
Doug
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Connecticut. Two of the last things they have not taxed are coins and bullion. We had a nice "Coinfest" show in Stamford for a few years until some security problems ruined it.
I haven't looked up the actual wording, but, in Washington State, I can't recall any taxation on coins/bullion since I've been back collecting (going on 15+ years now, this time around)
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
We're ok in WA state for now, but they tried to remove the tax exemption a few years ago, and it took a major effort to stop it. Now that the Dems have total control of the legislature, anything may happen. I'm leaving here as soon as I can retire.
Utah has no tax on coins or bullion and bullion capital gains are not taxed at the state level.
I grew up in Idaho. No tax on coins but not sure on bullion. I live in Nevada now and it’s 8.25% in Clark County (Las Vegas area) on coins. I mostly buy at shows or eBay to avoid tax on my coins. Not sure which state has the best coin laws, but I’ll put in my vote for Nevada as one of the worst.
Try PA. As long as I buy in state I don't get charged sales tax.
"A dog breaks your heart only one time and that is when they pass on". Unknown
Georgia is pretty cut and dry....no tax on coins.
Like other responders, I can just say that my state, Texas, is tax free.
No easy answer. Below, from APMEX, is their position on sales tax for PM and non-PM across the U.S. with descriptors for the States that charge. Best I have found on one site.
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In 1992, the Supreme Court of the United States set a precedent for how individual states would deal with retailers in the case of Quill Corp v. North Dakota (“Quill”). The court ruled in favor of Quill Corp, noting the company did not need to collect tax on sales in North Dakota as they had no physical presence within the state.
However, on June 21, 2018, the Supreme Court announced a decision that changed the 1992 precedent set in Quill. In South Dakota v. Wayfair Inc, the state of South Dakota argued it was losing out on local sales taxes with more and more consumers shopping online rather than in brick-and-mortar stores.
Now, online retailers have to adapt to the varying state sales tax rules and regulations across the United States. At APMEX, we are working to make this transition easy, especially as we begin enforcing the tax laws of an increasing number of states. We hope our interactive map will help in clearing up any potential confusion. If you have specific questions, you may want to contact your tax professional.
In a perfect world, the sales tax laws would be uniform, with each state requiring the same amount of tax be collected on all the same products. Of course, that is not the case. First of all, APMEX is only collecting sales tax for orders shipped within certain states. Among those states, some charge sales tax only on Jewelry or non-Precious Metals items (such as tubes or capsules). Other states require tax collection regardless of the items included in the order.
At APMEX, we encourage you to use our interactive map before you buy so you know exactly what you will be charged on your purchase. We strive to offer transparent pricing across our site and these sales tax charges are no different. Our goal is to clear up any potential confusion so you have a better idea of how much you will be spending on your favorite Precious Metal items. Remember to check the map for the state where your order will be shipped, not necessarily the state where you live.
https://www.apmex.com/state-sales-tax-information?force-full-site=1
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As for a short and simple “model law”,
“Sec. 151.336. CERTAIN COINS AND PRECIOUS METALS. The sale of gold, silver, or numismatic coins or of platinum, gold, or silver bullion is exempted from the taxes imposed by this chapter.” Texas Tax Code Chapter 151.
Sssshhhh!
As for “model law” that is short and concise, Texas Tax Code Chapter 151,
Sec. 151.336. CERTAIN COINS AND PRECIOUS METALS. The sale of gold, silver, or numismatic coins or of platinum, gold, or silver bullion is exempted from the taxes imposed by this chapter.
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The best I have found, on one website that covers the U.S., from APMEX:
In 1992, the Supreme Court of the United States set a precedent for how individual states would deal with retailers in the case of Quill Corp v. North Dakota (“Quill”). The court ruled in favor of Quill Corp, noting the company did not need to collect tax on sales in North Dakota as they had no physical presence within the state.
However, on June 21, 2018, the Supreme Court announced a decision that changed the 1992 precedent set in Quill. In South Dakota v. Wayfair Inc, the state of South Dakota argued it was losing out on local sales taxes with more and more consumers shopping online rather than in brick-and-mortar stores.
Now, online retailers have to adapt to the varying state sales tax rules and regulations across the United States. At APMEX, we are working to make this transition easy, especially as we begin enforcing the tax laws of an increasing number of states. We hope our interactive map will help in clearing up any potential confusion. If you have specific questions, you may want to contact your tax professional.
In a perfect world, the sales tax laws would be uniform, with each state requiring the same amount of tax be collected on all the same products. Of course, that is not the case. First of all, APMEX is only collecting sales tax for orders shipped within certain states. Among those states, some charge sales tax only on Jewelry or non-Precious Metals items (such as tubes or capsules). Other states require tax collection regardless of the items included in the order.
At APMEX, we encourage you to use our interactive map before you buy so you know exactly what you will be charged on your purchase. We strive to offer transparent pricing across our site and these sales tax charges are no different. Our goal is to clear up any potential confusion so you have a better idea of how much you will be spending on your favorite Precious Metal items. Remember to check the map for the state where your order will be shipped, not necessarily the state where you live.
https://www.apmex.com/state-sales-tax-information?force-full-site=1
Thanks guys! Saved me some time there. I'm going to hit up my legislators for an exemption in my state. Maybe I can get the bill filed and voted on.
I think you should be armed with good reasons before you request some type of tax exemption.
As you know, just saying that you don't want to pay taxes on a particular type of goods won't fly.
I know one argument for, is that it can bring in business to your state in the form of a regional or national show.
I think that there are state coin clubs (PAN) that have lobbied hard when tax free states look to switch to taxing coins & bullion.
They may have a brochure or outline of the types of arguments they made and would be happy to provide it to you.
"If I say something in the woods and my wife isn't there to hear it.....am I still wrong?"
My Washington Quarter Registry set...in progress
Though we have had some onerous laws develop as a result of thefts especially affecting major politicians who agitate for change. VT does have the sales tax on numismatics but I found their tax department very user friendly and helpful as I wanted to do business with an instate dealer who said I needed the certificate to not get hit with taxes.
I'm in Utah, no tax on coins, bullion or currency. If they are going to tac coins and currency, why don't they tax checks?
Yes, hopefully pursuing new tolls will distract them.
What is this "sales tax" you speak of?
That's a great idea. I do have some arguments ready ... and also a lobbyist that already works for me
The Commonwealth, never a tax, regards
The whole worlds off its rocker, buy Gold™.
Nebraska sales tax exemption (LB 867 ) includes coins, currency and bullion. I'd like to say it increased revenues, but spot kept dropping.
I know where the legislative floor is, though.
From a Doug Winter email regarding coins:
States with exemptions or no sales taxes currently include: Alabama, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Louisiana, Maryland, Massachusetts, Michigan, Montana, Nebraska, New Hampshire, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Texas, Utah, Virginia, Washington, and Wyoming.
If you live in one of these states, you will not see any changes to your invoices. However, there are a number of states we are now required to collect taxes on all coin sales.
The new list of states requiring sales tax on coin purchases, and the tax rates, is as follows:
Arkansas, 6.5%
Hawaii, 4%
Kansas, 6.5%
Kentucky, 6%
Maine, 5.5%
Minnesota, 6.875%
Mississippi, 7%
Nevada, 6.85%
New Jersey, 7%
New Mexico, 5.125%
New York, 4%
Ohio, 5.75%
Tennessee, 7%
Vermont, 6%
West Virginia, 6%
Wisconsin, 5%
District of Columbia, 5.75%
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
No tax on bullion either....
According to § 48-8-3 of the Georgia Code, "sales of gold, silver, or platinum bullion or any combination of such bullion" is exempt from sales taxation.
it's crackers to slip a rozzer the dropsy in snide
In Pennsylvania coins and precious metals are exempt from state sales and use taxes. Medals, tokens and paper currency are, however, subject to taxation.
Not sure what the argument is to break it down this way.
"If I say something in the woods and my wife isn't there to hear it.....am I still wrong?"
My Washington Quarter Registry set...in progress
Why don't they charge sales tax on banknotes dispensed by ATMs and bank Tellers?
IMHO, if coin collectors don't stay quiet and keep their heads down, all these exemptions will go away. Not difficult to convince legislators that Coin collectors are rich dilettante people who should pay lots and lots and lots of additional taxes.
Because they are worth face value only. Some states have formulated calculations like Nevada: Sales tax is collected on anything that sells for over 50% of its “Face Value.” (Although I don't know how this works in reality)
In Utah, the state recognizes that they can choose between charging sales tax, or driving away coin shows. Or worst of all, drive everything underground and create a black market. They decided they would rather collect sales tax on all of the peripheral items like flips, holders, books, hotel rooms, gasoline, food, etc. We got rid of the sales tax because the governor and legislature were shown what they would lose. If people had stayed quiet, we would still be paying sales tax.