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Has the new sales tax laws affected your buying or selling?
Zoins
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Given that large Internet venues now need to collect sales tax, has that affected your own buying or selling? Please post your own experiences, not general thoughts, as general thoughts and predictions have been posted elsewhere.
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Lots of buyers on Ebay are visibly in shock when they get a hefty sales tax tacked unexpectedly on to their purchase prices. They hadn't planned for it, and on occasion now will just not pay and take their lumps.
I expect people will anticipate it as time goes on, will therefore be more likely to pay, but will also be less likely to bid on Ebay, since there remain venues where they can avoid the tax (i.e., direct sales through other means such as Instagram).
Here's a warning parable for coin collectors...
Buying coins, no, since there's no sales tax on coins in Illinois for now. I suppose an argument could be made that that is working to my advantage in auctions and my buying has increased as a result as the underbidder bails one increment earlier, but can't really prove it. If suddenly I had to pay an extra 10-11%. I would think twice before clicking "Bid now" one more time.
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Anything that raises the price will have an effect on the market. There will be less disposable income available for the purchase of "luxury" items such as coins and other collectibles.
The people who collect with "investment" in mind will be most affected because the tax collection will be viewed as an increase the margin between buy and sell prices. It will be more difficult to make up the difference when selling and this will cause them to think twice about making purchases.
Martin Armstrong references "the hunt for taxes". Expect it to continue. It seems like a wet blanket on private industry in general, but I also expect that people will adjust to the new paradigm, as usual. Until they don't.
I knew it would happen.
No, I'm one of those rare types who actually paid my taxes all along. Sales tax at purchase or use tax when I file state income taxes it makes no difference to me.
Not as much as the dearth of new material that's really exciting.
That darn proof five spoiled me.
Not at all. (there is no sales tax in my home state)
Some people have ALWAYS had sales tax to pay and still do. Some people have NEVER had sales tax to pay and still don't. The ones that have been ducking sales tax but can't anymore will have to learn to adjust.
I live in NY State. We have had to pay sales tax everywhere except eBay until recently. Yet plenty of NYers buy coins at Stack's or Heritage. When it is the norm, you just learn to accept it like you do when you are at Walmart.
People who want to be flippers and thinks this changes the equation, I'll say 2 things:
There are many venues for avoiding sales taxes....Ebay is certainly a popular source for many people, and no doubt some will seek other sources for products...for a while. I used to frequent ebay in the early years....and still will look there from time to time. However, I have not purchased from ebay for a long time - before the sales tax issue. Sure, if an item is available somewhere without a sales tax, I will naturally pursue the cheaper option. If it is not, I will pay the tax. Cheers, RickO
Simplicity has been replaced by confusion and chaos.
One is obligated to purchase certain items. Rare coins will always remain a luxurious non necessity. Demand will falter and prices will continue to decline.
Agree with Lmlanzaf that they will remain in better hands though whether that is a benefit is debatable.
Say "Non necessity" one more time you dirty dog!
Buying and selling more and more than usual.
Great deals on coins right now because of the dreaded tax that some people can not comprehend
A fantastic time to be in the coin business
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Clearly you drink...
Clearly, I know how to run a profitable business.
All you have to do is work for it.
Sale taxes have yet to be fully implemented but it will by 2020. I have not been discouraged to buy any coin worth my time as a result of Tax,auction fees or freight charges. Large business will be hit harder first because of sales volume and state tax thresholds requirements. To me this will open many doors to small dealers. Sorry for lengthy response but good topic. My experience so far is no change in buying habits.
Best place to buy !
Bronze Associate member
One does not preclude the other....
Also, I assume one does not guarantee the other...
The sales tax has impacted me as a buyer by really pissing me off.
For the past several months eBay was taxing me on purchases from in-state sellers. Now it is all sellers.
If I ever start buying enough where the aggregate taxes are significantly higher than the cost of a PO Box in a neighboring tax-free state and gas money to go there once every few weeks, I will consider it.
Has not stopped me, tax-free; but non-numismatic items are a different story. Always factor the state sales tax for items whether it is via internet or in-person buys.
EBay Seems a little slow right now yes, As I can imagine other venues are as well. October is one of the worst months of the year as people need to put money elsewhere for a bit, Back to School CC bills, Saving up for the holidays ect.
Buyers also need to smarten up a bit as do sellers because the game is Changing.
In my state if you spend over 1k on numismatic coins the Tax is waved.
I actually asked a Seller to add $1 to the, “Buy it Now” Price to get over the 1K threshhold.
Also going forward, SELLERS need to inform buyers in the Descriptions of items that Taxes might be collected depending on what state the buyer is from.
Might Help with the sticker shock on checkout.
Just my 2cent piece worth
No.
LIBERTY SEATED DIMES WITH MAJOR VARIETIES CIRCULATION STRIKES (1837-1891) digital album
Taxed bullion = no purchase.
I clearly have enough. Glad I bought when I did.
I feel fortunate. Established in 2001.
Stopped in....
Or the buyer could just read the terms in the "Shipping and Payments" section where it says:
Taxes may be applicable at checkout.
And provides a link with an explanation.
Yes. "Just another brick in the wall".
I'm more of a buyer than a seller. I've always enjoyed buying off ebay instead of going out and shopping for something. We have an 8% sales tax here and buying from ebay has always saved me a couple dollars if I didn't need the item right away. So now I'll probably buy more things local than I did and just deal with the inconvenience of having to go pick it up if I don't want to pay shipping charges. What does aggravate me about the tax policies is how it is billed. It's billed thru paypal as a separate payment so now I also have twice as many entries in my balance book.
My Original Song Written to my late wife-"Plus other original music by me"
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...and bleed of the dead stock from time to time. Holding a large inventory in a weak market can be a nightmare.
That changes November 1st.
Now that I don’t have to pay tax on bullion, I’m buying more locally.
Ebay has it wrong... they are now applying sales tax to purchases in some states that do no tax coin and bullion sales. It has and will continue to impact values.
There were some early implementation issues in certain states and eBay has attempted to correct them as they were reported.