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Coin Sales Tax Dilema
erwindoc
Posts: 4,929 ✭✭✭✭✭
Just browsing Heritage and when I logged in, it said that they are now required to collect sales tax from residents of Tennessee starting October 1. The county I live in is nearly 10 percent! That combined with buyers fees will really alter bidding for me. 
Anyone else effected by this? I know Tennessee isn't the only state doing it.
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All of them... search for the "Wayfair Decision"
ANA 50 year/Life Member (now "Emeritus")
I read eBay is doing this. Does this also affect SB and GC?
I read that also and with buyers fee and the tax, it is going to make me look elsewhere. I do like Heritage Auctions because of large amount of coins and ability to make offers from owners.
There is no hiding from the sales tax other than small time dealers and BST. Some states are exempting businesses below a certain annual sales level. But that is the only exemption.
Lobby your state legislators if you find it troubling.
It’s not an auction house issue, it’s a state issue.
Mark Feld* of Heritage Auctions*Unless otherwise noted, my posts here represent my personal opinions.
Its really affecting bottom line prices realized on ebay, I sell every day across the board values of coins and such, and I can tell you it is. With so many states ebay is collecting for now, there is less and less chance you get two bidders that don't have to account for the added tax.
I have a sibling in a non tax state and thought about having stuff sent there.
Yet the in-law spouse who checks the mail is a nincompoop and it was worth paying the tax just to get my things.
I don't really notice it, but I do as few auctions as possible. I'm sure it causes some adjustment, but it is price point relevant. No one is going to skip a $5 circ Buffalo because it will cost them $5.50. But it might well cause you to adjust your strategy if you are talking about tens or hundreds of dollars in taxes.
In the end, it will even out because people tend not to think about the sales tax as it is just sort of background on anything you purchase. In NY State, people in B&M's don't even squawk about it except the occasional bullion purchaser.
It will change people trying to flip stuff. But if you want to be a dealer (flipper) get a damn resale certificate and run yourself like a business.
yes. And everyone else in any business whatsoever if your state has an internet sales tax.
@Zing.... Welcome aboard....The internet was a wild ride for a while regarding taxes.... It was too big a prize for politicians not to act and force tax collection. Private sales are the way to go anymore....build relationships with some dealers (contact through websites or PM's)....Cheers, RickO
Ultimately all the coins get flipped, either by the buyer or the heir. Different than the proverbial set of golf clubs or the washing machine. Beyond the $50 widgets, virtually all coins are bought with some thought to the intrinsic resale value even if the intent is to hold them for a substantial amount of time.
Seems there's more activity when they have eBucks promotions which recoup the tax.
Heritage and Stacks need to start offering HAbucks and SBbucks or at least start offering FREE SHIPPING.
Actually, it would be nice if Heritage or Stacks would discount postage for higher value orders. I mean, if I buy a $200 item and pay a $40 premium and you want to charge $15 for shipping, fine. But if I buy a $2000 item and pay a $400 premium, can't you discount the postage a little? It might even encourage customers to buy a second item if the shipping ends up being free on the second item.
Not that it is mandatory. The cost is what it is and I adjust my behavior accordingly.
True. But my point is that people don't even think about the tax being added to their grocery bill or their golf clubs. So, for people buying a coin to have for 20 years, they will eventually accept the tax as simply background noise. In the past, they could avoid it on the internet and so they tried to shop there. Now that they can't, after an adjustment period, they will just accept it as part of the cost of acquisition.
Thank goodness Arizona does not tax precious metals and coins.
What is the threshold amount for a small business on Instagram to start collecting out of state sales tax for the out of state sales?
In-state I will have to charge tax, I know.
Do all states even have the small business exemption? It's going to be different for each state.
It could be a paperwork nightmare...
https://salestaxinstitute.com/resources/remote-seller-nexus-chart
Thank you.
I chose a random stat and their threshold was $ 100,000. I do not think I will have $100,000 annually sales in each state this year but hope to soon
That would be a good problem 
Of course, the giant eBay has met that threshold so my eBay sales fall uder that law.
Don't you already have a private website? Instagram wouldn't change anything unless you have a separate LLC.
Some were as much as $500,000 (Texas). I didn't see any that didn't have an exemption, but I only looked at about 6 or 8.
There appears to be 20 states (smaller?) that have a uniform reporting form which would make things a little easier.
Yes, But hope my Instagram promotion will spike the website sales. Still, do not think I will reach 100K per State per year nor 500K
I think about it. Close to 9% sales tax here and seemingly a new proposition on every ballot.
What if your doctor prescribes getting new coins as a way to treat depression?
my coin buying went way down since the tax started on Heritage and ebay. I already plan to loose money on most of my coin purchases, adding another 5% has made me rethink many purchases. On the upside I have been taking a lot more fishing trips with all the money I am saving from not buying coins
I’m thinking this may not affect buyers for HA because they should just factor this into their bids, similar to the BP.
However, this could impact sellers who may want to negotiate a lower SP to account for this.
Isn't it true that Tennessee has no income tax on earned income? If this is the case, then a 10% sales tax doesn't seem too harsh.
After all, state governments have to raise funds to operate - and they all get their $$ from one source or another until the feed trough is full.
“In matters of style, swim with the current; in matters of principle, stand like a rock." - Thomas Jefferson
My digital cameo album 1950-64 Cameos - take a look!
Yeah, States like that try to subsidize their population at the cost of outta staters!
This has been discussed several times but I will gladly put this out there again. This sales tax collection was a scheme by Wayfair and other mega-online retailers to, "even the playing field" with small businesses. Basically under the previous supreme court decision known as Quill, there was no sales tax collected unless a company had physical presence in the state. That is why even before this decision companies like Heritage had to collect tax in NY even though they are a TX company. They had an office there, it establishes nexus and they had to collect tax. Wayfair et al. did not like this concept because they had a physical presence in basically every state. They wanted things to be the same for them and small business (which is BS but they have lots of lawyers on staff to argue). With the Wayfair decision, they argued that with the internet, every company essentially has a physical presence in every state. The Supreme Court in their decision said that their decision is purely based on the legal argument and could result in very troubling consequences. Those consequences include uncertainty of what the rules are, what the limitation of the rules are, who can tax, how they can tax and many other things. In the majority opinion they even said that this is a major problem that needs a legislative solution. Most states have literally no idea what is going and can't give guidance on how to pay taxes owed. For our industry ICTA is working to get this dealt with.
Watch for the trap: in most states, it's either a $ threshold OR a given number of sales to state residents.
You need to research the laws of all 50 states, plus the six territories, commonwealths, and possessions where you sell.
I also expect you will see a lot more reciprocal tax treaties (like NY and NJ) have since it benefits both states. What that will mean is that states will be able to share information and give you less opportunity to hide.
ANA 50 year/Life Member (now "Emeritus")
Subject to Change…
State/Local Sales Tax Applies to Bullion…
Arkansas: Bullion and numismatic coins are subject to sales tax.
Hawaii: Bullion and numismatic coins are subject to General Excise tax.
Indiana: Bullion and numismatic coins are subject to sales tax.
Kansas: Bullion and numismatic coins are subject to sales tax.
Kentucky: Bullion and numismatic coins are subject to sales tax.
Maine: Bullion and numismatic coins are subject to sales tax.
Mississippi: Bullion and numismatic coins are subject to sales tax.
New Jersey: Bullion and numismatic coins are subject to sales tax.
New Mexico: No state tax exists on bullion or numismatic coins, but a gross receipts tax (on sellers) is imposed.
Tennessee: Bullion and numismatic coins are subject to sales tax.
Vermont: Bullion and numismatic coins are subject to sales tax.
West Virginia: Bullion and numismatic coins are subject to sales tax.
Wisconsin: Bullion and numismatic coins are subject to sales tax.
District of Columbia: Bullion and numismatic coins are subject to sales tax.
Bullion Exempt upon Certain Conditions…
California: Monetized bullion and numismatic coins exceeding $1,500 have a bulk sales tax exemption.
Connecticut: Bullion and numismatic coins are exempt from sales tax if sale exceeds $1,000.
Florida: Bullion and numismatic coins are exempt from sales tax if sale exceeds $500.
Maryland: Bullion and numismatic coins are exempt from sales tax if sale exceeds $1,000.
Massachusetts: Bullion and numismatic coins are exempt from sales tax if sale exceeds $1,000.
New York: No sales tax is imposed on precious metal bullion or numismatic coin transactions over $1,000. However, the consideration may not exceed the value of the precious metal content of 140% for silver, 120% for gold and 115% for other precious metals. Also, there is a sales tax on precious metal bullion that has been manufactured, processed, assembled, fabricated or used for an industrial, aesthetic or artistic purposes.
Virginia: Bullion and numismatic coins are exempt from sales tax if sale exceeds $1,000. (No requirement that the precious metals be of the same type.)
Wyoming: Gold and silver used as legal tender are exempt.
Bullion is NOT Taxable (Exempt)…
Alabama: Bullion and numismatic coins are exempt from sales tax.
Arizona: Bullion and numismatic coins are exempt from sales tax.
Colorado: Bullion is exempt. Not all numismatic pieces are exempt. Jewelry and commemoratives are taxable.
Georgia: Bullion and numismatic coins are exempt from sales tax. Proper documentation is needed.
Idaho: Bullion and numismatic coins are exempt from sales tax.
Illinois: Bullion and numismatic coins are exempt from sales tax.
Iowa: Bullion and numismatic coins are exempt from sales tax.
Louisiana: Bullion is exempt.
Michigan: Bullion and numismatic coins are exempt from sales tax.
Minnesota: Bullion and numismatic coins are exempt from sales tax.
Missouri: Bullion and numismatic coins are exempt from sales tax.
Nebraska: Bullion and numismatic coins are exempt from sales tax.
Nevada: Bullion is exempt. It is taxable if the sales price exceeds the face value of numismatic coins by 50 percent.
North Carolina: Bullion and numismatic coins are exempt from sales tax.
North Dakota: Bullion and numismatic coins are exempt from sales tax.
Ohio: Bullion and numismatic coins are exempt from sales tax.
Oklahoma: Bullion and numismatic coins are exempt from sales tax. Fabricated metals that are processed or manufactured for artistic use or as jewelry are taxable.
Pennsylvania: Bullion and numismatic coins are exempt from sales tax.
Rhode Island: Bullion and numismatic coins are exempt from sales tax. Fabricated precious metal that has been processed or manufactured for one or more specific and customary industrial, professional or artistic uses is not exempt.
South Carolina: Bullion and numismatic coins are exempt from sales tax.
South Dakota: Bullion and numismatic coins are exempt from sales tax.
Texas: Bullion and numismatic coins are exempt from sales tax.
Utah: Bullion and numismatic coins are exempt from sales tax.
Washington: Bullion and numismatic coins are exempt from sales tax.
No State Sales Tax…
Alaska: Bullion and numismatic coins are exempt from sales tax.
Delaware: No State Sales Tax (Bullion and numismatic coins are exempt).
Montana: Bullion and numismatic coins are exempt from sales tax.
New Hampshire: No State Sales Tax (Bullion and numismatic coins are exempt).
Oregon: No state sales tax, Bullion and numismatic coins are exempt.
Adding sales tax to the purchase once I get to the cart means I back out. Done.
It allows me a little bit more time to make a plan and find alternatives.
As others have noted, BST may do better and I find I can spend it on other things.
And I also agree that this will become a moot point once enough time elapses but that is assuming there are enough young collectors to fill the void.
This
Are you saying that if I sell coins on eBay, EVEN IF I'm BELOW the $100,000 or 200 transaction limit in that State in a given year, then I still have to collect sales tax on each transaction?
U.S. Type Set
I believe that ebay itself will collect the tax for each state and remit and you will have no control over it. I am not a tax account nor Lawyer tho.
Ebay will charge and collect it. They're are numerous threads here and on ebay explaining it.
@ricko thanks for the welcome. I agree with getting to know dealers, I just do not have the luxury of a local coin shop or dealer. I will continue to buy from Heritage and other internet sites. The joy of finding the coin and becoming the owner usually out weighs the pain of the cost paid.
Depends on state law, but at least in Texas, the $500,000 threshold applies both to sellers and marketplaces.
Every state has a page or pages like this:
https://comptroller.texas.gov/taxes/sales/remote-sellers.php
if not the state, the local CPA association will have one:
https://www.tscpa.org/resources/news/advocacy/legislative/general/wayfair---online-state-sales-taxation
ANA 50 year/Life Member (now "Emeritus")
I GUARANTEE eBay sells more than $500k into Texas.
From an eBay standpoint, there are NO exceptions other than items that aren't taxable in the state.
I don't think every state did the market place thing, but they will...
ANA 50 year/Life Member (now "Emeritus")
There in every family
As I've always suspected...small time sellers might not have to worry about state sales tax.
Below is the link for every States Nexus guide.
https://www.salestaxinstitute.com/resources/economic-nexus-state-guide
Unless you are selling through a market place that does $100K or $200K or $500K of transactions in that state (think fleaBay).
ANA 50 year/Life Member (now "Emeritus")
Looks like Kansas is currently the only exception. Appears they require it from the first cent. If that holds up, then every business in the country would be required to register with them and collect sales tax.
Unless some choose to refuse to ship to Kansas, similar to how some will not ship to Minnesota because of their licensing requirement for selling coins,
"To Be Esteemed Be Useful" - 1792 Birch Cent --- "I personally think we developed language because of our deep need to complain." - Lily Tomlin
Will GC get an exception due to being below state limits?
It appears, that the BST Forum, might become a viable alternative for the small time sellers.
Doubtful... (well, we hope) they sell enough that they'll have to collect in most if not all states. They have not updated their web site and October 1st is fast approaching.
ANA 50 year/Life Member (now "Emeritus")
You have to be a subatomic seller to make it on BST. That is not a marketplace
Does anyone realize how few regular users of BST there are? This forum is one of the most active and the membership is in the hundreds not millions like ebay.
If you sell and are in a California, it’s worth looking into resale permit so eBay won’t change sales tax. Does Heritage have the same exemption?
No sales tax on coins in Washington State.