Any update on ebay Coin Sales Tax?
C0inCollect0r
Posts: 374 ✭✭
Hi folks,
I have heard from many collectors that ebay is apparently charging sales tax on coins in states where coins are exempt and not taxable (I believe Washington was the primary state I heard about). This seems quite ridiculous and I was just wondering if anyone has heard any update on this? Is ebay simply not going to honor state tax exemptions for coins? It looks like they are planning to "roll out" sales tax to more states in the coming months and it will become quite a mess if these exemptions are simply ignored.
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Should be the end of coin sales on Ebay.
Pity.
Are we sure that the same exemptions apply to the internet sales tax passed by those states?
I don't see a coin exemption in Washington. I see a bullion exemption.
https://apps.leg.wa.gov/rcw/default.aspx?cite=82.04.062
If you are in those states that charge sales tax on coins, you have to pay the tax locally and almost anywhere else except maybe BST. When you can't avoid the tax, how much impact can it have?
Pennsylvania, one of the original 13 colonies of the United States and the nations first capitol says:
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.
I just checked EBay where I bought some Glock products. Can't see where I was charged a sales tax. Anyone know about this? By rights they should have charged me 6%.
NOt until July according to this:
https://ecommercebytes.com/C/blog/blog.pl?/pl/2018/9/1536940722.html
Washington is exempt for all US Coins. Not sure about foreign. The issue is they may force buyers to pay the tax and submit a request for a rebate......its annoying and unless the amount is big enough, most people might not mess with it.
Supposedly the rule are in flux...
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Finest Toned Ike I've Ever Seen, been looking since 1986
Added a bit of gold today. Still tax free in the Commonwealth.
The whole worlds off its rocker, buy Gold™.
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Wooooha! Did someone just say it's officially "TACO™" Tuesday????
I had a note from ebay saying that they levied a tax on a coin sale I had in Washington and (IIRC) one in Iowa.
We need tax money
Have not been buying any and no plans to find out. Got hit with ST on smoe non-coin stuff tho. In IA BTW.
Don't worry washingtonfolks a bill just Interduced the state legislature to tax coins and bullion. The no tax maybe ending for us too
Martin
looks like ebay is going to just apply various state tax rates across the board on all types of merchandise without consideration of states who exempt coins/bullion from a sales tax.
No Way Out: Stimulus and Money Printing Are the Only Path Left
Last I checked it's working properly for WA. I'm no longer seeing sales tax when I send an invoice to WA (not that I can do anything about it, but when they were charging it, they showed it to me). I was in communication with the person who oversees the coin category and was getting updates as this issue was getting resolved. They don't get a pass for letting it happen in the first place, but they did work to resolve it and get it right based on WA law.>
@jmlanzaf said:
The wording isn't ideal, but they define "monetized bullion" (which is tax exempt) as a coin using a lot of legalese.
"For purposes of this section, "monetized bullion" means coins or other forms of money manufactured from gold, silver, or other metals and heretofore, now, or hereafter used as a medium of exchange under the laws of this state, the United States, or any foreign nation, but does not include coins or money sold to be manufactured into jewelry or works of art."
Just backed out of checkout when eBay taxed an item coming from a Canadian seller.
I had considered the cost and the shipping charge but not the tax for the numismatic book.
"Inspiration exists, but it has to find you working" Pablo Picasso
There are more than one commonwealths
Has Canada always assessed a tax of some sort? I sent an inquiry to the Iowa Dept of Revenue asking if there is a mechanism for recovering improperly assessed sales taxes.
I would not enter into an eBay transaction unless I knew that it could be reversed for the reason that you gave.
Good luck getting a response in Iowa. I had filed for sales tax refund (non-coin related) and it took them 9 months to finally process it. The Iowa form you want is IA 843. This was for a business located in Iowa but don't see why an out-of-state payor can't use it for a refund claim.
https://tax.iowa.gov/sites/files/idr/forms1/IA843ClaimforRefund (22009).pdf
I'm instate and referred only to eBay. eBay just started collecting Iowa sales tax on 02/01/2019. if they collect ST on a coin purchase shipped to Iowa that is improper. i suppose I would file the same form to get refunded. Just today my account said that the IA Dept of Revenue was messed up, but coming around. I'll defer any coin purchases via eBay until it's fixed one way or tuther.
You can give them a call also but it takes like all day to speak with someone if you're lucky. I'd file the IA843 and they will have to respond eventually. Good luck!
Fast response today from inquiry sent last night.
"For any sales tax collected that was charged incorrectly, you will file the IA 843 request. Ebay is aware, and is working to get the billing fixed."
Of course, it's just a what if since I have not bought any coins via eBay this month.
Amazing they responded so fast you must have the Midas touch! Now it they refund in gold coin I'd be really impressed - lol.