Do you ever pay sales or use tax on your coin purchases?

MrEureka

Depending on where you live, how you buy your coins, or what you do for a living, you may be able to legitimately or illegitimately avoid sales or use tax on most or all of your coin purchases.

I'm NOT interested in hearing about how you manage to avoid the taxes, or why you shouldn't have to pay the taxes.

I WOULD like to hear about purchases that you have made despite having to pay the tax, or deals that you have not done because they were taxable.

FWIW, I've found that most buyers at coin shows will walk away a deal if they are required to pay sales tax. But that's just my experience. I'd like to hear more.

jmlanzaf

@MrEureka said:
Depending on where you live, how you buy your coins, or what you do for a living, you may be able to legitimately or illegitimately avoid sales or use tax on most or all of your coin purchases.

I'm NOT interested in hearing about how you manage to avoid the taxes, or why you shouldn't have to pay the taxes.

I WOULD like to hear about purchases that you have made despite having to pay the tax, or deals that you have not done because they were taxable.

FWIW, I've found that most buyers at coin shows will walk away a deal if they are required to pay sales tax. But that's just my experience. I'd like to hear more.

If you are at a coin show that requires sales tax then technically EVERY dealer needs to be charging you sales tax. [Bullion exemption noted.] So, you could probably make some money turning in the dealers who aren't charging sales tax.

jmlanzaf

I personally consider sales tax and auction premiums irrelevant to my purchases. I look at the TOTAL price paid, no matter what goes into the price. If the final TOTAL price is acceptable, I buy it. If not, I do not.

I will now sit back and wait for this thread to go off the rails...

shorecoll

I am fickle, I cut back purchasing from some dealers because they started charging it, others I always paid so it wasn't an issue. I think net net I have purchased less because of it.

ShadyDave

Nice try IRS.

jmlanzaf

@ShadyDave said:
Nice try IRS.

LOL.

[But, just for accuracy: The IRS doesn't monitor sales tax.]

JBN

My last purchase from GC was subject to sales tax. I was aware of this ahead of bidding. I wanted the dollar. So, the 10% is extra dirt on the burial. I fully understand that some deals will fall apart over the extra 10% dead costs.

MrEureka

As a dealer, I’ve never had to pay sales tax. I do, however, sometimes have to pay VAT and export taxes on overseas purchases, and customs fees (on non-dutiable coins!) that I bring back to the USA.

jmlanzaf

@JBN said:
My last purchase from GC was subject to sales tax. I was aware of this ahead of bidding. I wanted the dollar. So, the 10% is extra dirt on the burial. I fully understand that some deals will fall apart over the extra 10% dead costs.

Frankly, this is where a national VAT would level the playing field for everyone.

dbldie55

I live in a no sales tax state.

MrEureka

@jmlanzaf said:

@JBN said:
My last purchase from GC was subject to sales tax. I was aware of this ahead of bidding. I wanted the dollar. So, the 10% is extra dirt on the burial. I fully understand that some deals will fall apart over the extra 10% dead costs.

Frankly, this is where a national VAT would level the playing field for everyone.

True, but you might not like what would happen to the market if the tax causes people to think of coins as less of an investment or a savings plan, and more as “money spent “.

jmlanzaf

ational VAT would level the playing field for everyone.

True, but you might not like what would happen to the market if the tax causes people to think of coins as less of an investment or a savings plan, and more as “money spent “.

Actually, I would LOVE that. I tell everyone (on this board and elsewhere) that that is EXACTLY how they should view coin purchases.

I personally don't care if the price of coins goes up or drops. I don't care if demand goes up or down. You deal with the market as you find it.

TommyType

Not sure I've ever seen Sales Tax computed separately at a coin show(?)

My assumption is that either:
1) The dealers are (legally) taking the total sale price, and backing out the required tax for the state.
or
2) Just not collecting and submitting it. (Which puts them in significant legal jeopardy, I would think. Particularly for local dealers doing it as a business at local shows).

I honestly don't know what MY requirements under either scenario are....particularly since I don't know which is taking place. I'd be interested if anyone would willingly tell me what they do, whether as a show dealer, or as a collector/buyer.

As for online or auction sales tax, I keep it in mind when purchasing/bidding. I don't necessarily mentally add it to my bid or cost, but am just aware. I figure we all need to pay our taxes....somehow!....or the whole building collapses.

TwoSides2aCoin

I'm still trying to make enough money to pay income tax in this business.

jmlanzaf

@TommyType said:
Not sure I've ever seen Sales Tax computed separately at a coin show(?)

My assumption is that either:
1) The dealers are (legally) taking the total sale price, and backing out the required tax for the state.
or
2) Just not collecting and submitting it. (Which puts them in significant legal jeopardy, I would think. Particularly for local dealers doing it as a business at local shows).

I honestly don't know what MY requirements under either scenario are....particularly since I don't know which is taking place. I'd be interested if anyone would willingly tell me what they do, whether as a show dealer, or as a collector/buyer.

As for online or auction sales tax, I keep it in mind when purchasing/bidding. I don't necessarily mentally add it to my bid or cost, but am just aware. I figure we all need to pay our taxes....somehow!....or the whole building collapses.

Well, first of all: some states don't have a sales tax on coins.

Some dealers will say (pretend?) that sales tax is part of the price. Whether it is or isn't depends on the honesty of the dealer. It is rather hard for States to track cash transactions. It is also a question of state-by-state laws as to whether it is even legitimate to (allegedly) include the sales tax as part of the price.

Hydrant

Only once that I remember. It was at a coin show in California. It was my first purchase from a very well known, respected, dealer/numismatist. In my opinion he's the top expert in his field. Good guy too. Anyway, after that he never charged me any sales tax again. All my other purchases from him have been via the internet or through auctions conducted in a different state. I didn't mind because it's the law around here. Business is business. I just considered that he was being honest. Nothing wrong with that. Also, at other times when I have inquired about a coin.....he just sends it to me for approval. Even if I don't ask. Very trusting man. I think that says a lot about him. Those who trust are usually the most trustworthy. I think.

asheland

Luckily in NC they finally abolished sales tax on coins, currency and bullion. But in the past, I just bit the bullet and paid it. If I want the coin or whatever bad enough, I just figure it as part of the cost.

golden

In 58 years I have paid sales tax twice.

ctf_error_coins

Resale licenses work

johnny9434

I don't remember

JJSingleton

Coins are exempt in GA so if I am somewhere where there is tax I arrange for the seller to ship me the coin. The idea of paying tax on a five figure coin is a deal breaker.

fishteeth

My coin buying has dropped dramatically since ebay heritage Doug winter etc started to charge people in my state sales tax. I am a collector and dont mind losing some money on coins but adding another 5% has pushed me over the edge. I have purchased 1 coin since tax went into affect.

Twobitcollector

Only once at the last big shooooow in Philly.
One of the foreign mints charged me 60 cents tax on a sale, I told them there was no sales tax in PA on coins, but to no avail.

BillJones

Yes, I paid use tax when I was dealer, when it was the law to do it. I have also been hit with sales taxes on foreign coins from Heritage.

messydesk

I currently don't have to pay sales tax on coins where I live. If I'm at a show where tax is in play, then I'll figure that into what I'll pay, and therefore be less likely to make a purchase.

Timbuk3

Nope !!!

ARCO

Never ever. Sales tax on coins? Collecting would be over for me.

2ndCharter

South Carolina is another state that exempts coins and currency so I don't have to worry about it.

ms70

As a collector the vast majority of my purchases are over the internet, so there's no avoiding it.

Especially here in NJ where we are about to get taxed on rain.... No, I'm not joking. Look it up.

sparky64

I live in PA near the NY border.
At the small shows in NY most of the dealers have their sales tax paper displayed in one of the cases.
I've never had sales tax tacked on the price at a show.
In B&M's I've paid sales tax a few times and it catches me off guard.
I now ask for the final all in price.
I will nix a purchase if sales tax is added in at the end. Especially for bullion.

BryceM

Sales tax chez moi wouldn't be a show stopper, but it wouldn't help either.

daltex

I live in New Hampshire. What's sales tax?

Cougar1978

I see it as part of the overall cost of the coin like shipping. Or a cost of doing business.

But decades have passed since anyone charged me sales tax separately and coins are exempt from it here in Texas.

A seller might be wise to simply have it in the markup equation like “free shipping” vs driving away business assuming it’s not collected by some third party.

jmlanzaf

@Cougar1978 said:
I see it as part of the overall cost of the coin like shipping. Or a cost of doing business.

But decades have passed since anyone charged me sales tax separately and coins are exempt from it here in Texas.

A seller might be wise to simply have it in the markup equation like “free shipping” vs driving away business assuming it’s not collected by some third party.

State law could require the sales tax to be called out separately.

AlexinPA

Under Pennsylvania tax laws and regulations, www.revenue.state.pa.us, there is a state wide sales tax of 6%, with additional taxes of up to 2% possible in some locales. There is an exemption for purchase of coins and bullion, as long as the value is based on the metal content and not the form of the product.

OKbustchaser

Yes I pay my use tax on out of state purchases when filling my state tax return. On the other hand, in nearly 60 years of collecting I do not remember being charged an additional sales tax at the time of a local purchase more than once or twice. My assumption is that the local dealer is including it in his total price.

Nap

I live in NY

I have to pay sales tax whenever I buy from Heritage or Stacks.

It’s an expensive state to live, but it has its perks.

Ablinky

It's only happened to me once in Michigan. Coins are exempt from sales tax but I guess medals and paper money isn't when buying in a retail setting. It caught me off guard but was only like $5 so I wasn't too concerned.

Jekel

State of Indiana. It's illegal to charge taxes on legal tender currency regardless of the amount or age.

AUandAG

I refuse to pay taxes on money. So, I skirt the taxman, like it or not.
I'm in NV and if the seller is a dealer (business) in NV he has to collect tax. Fortunately I have a son in ND. He buys my local coins for me without the tax and just sends them on.

bob

Some_of_it

I don’t mind paying sales tax on coins. Seems odd that I do pay taxes on on-line purchases and in retail shops but not at coin shows.

Goldminers

I get charged 8.9% WA sales tax if I buy slabbed coins from Apmex, but not if I buy encapsulated coins with an external value above and beyond the base value of the underlying Precious Metal from the US Mint

The state of Washington requires the collection of sales taxes on certain products sold by APMEX and delivered to a Washington address. These taxes must be collected on Copper products, numismatic products, accessory items and processed items. All other products sold by APMEX are exempt from these taxes.

Numismatic Products. Products with an external value above and beyond the base value of the underlying Precious Metal, due to the item’s rarity, condition, age or other external factor.
Accessory Items. Items such as holders, tubes or coin flips.
Processed Items. Precious Metals that have been processed by third parties into items valued on more than their Precious Metal content, such as jewelry, statues or colorized coins.
Sales taxes in Washington are calculated at checkout on the APMEX website based on (1) the taxability of products sold by APMEX in Washington set forth above and (2) the specific tax rates established by the taxing jurisdiction of the delivery address in Washington.

APMEX began collecting sales taxes in Washington in October 2018.

This is where you can see what the sales tax rules are for your state.
https://www.apmex.com/state-sales-tax-information

And yes, to answer your question I only buy from them and others if the overall deal with tax is still OK. I do try to find the same items where tax is not charged, if I can end up with a lower total cost.

Wil1858

When appropriate yes.

Then otherwise just a victim/get in line fee (mandated) waiting to be handed over 😎