Florida folks - eBay heads up
Aercus
Posts: 381 ✭✭✭✭
Just got a message from ebay, they are now collecting taxes for our state. This apparently includes improperly collecting taxes for US legal tender coins (such transactions are tax exempt in Florida). Going to get on the phone with them this evening, but watch your transactions until they straighten this out.
Aercus Numismatics - Certified coins for sale
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Tennessee got hit a couple of years ago. I still forget to factor that in on my bids. Its near 10% where I live!
Yep ... NY too.
The OP's point was that Florida does NOT have a tax on coins, unlike NY and (presumably) TN.
eBay has probably not worked out all the exemptions yet. I'm sure they will soon but the more people reach out to them the faster they will get it fixed. Until then, you can also contact their customer service to refund the sales tax for being improperly collected, and I have heard attempts are usually successful but it takes a week or two to get the refund.
Yepper, Ohio got to pay eBay taxes a few years ago also - BUT, when they charge taxes then you had to pay 10% fees on them too, the way it was originally set up - I don't know if it has changed with their "Managed Payment" plan............
"When they can't find anything wrong with you, they create it!"
TN does not exempt coins or precious metals right now. There have been several attempts at getting them exempt. There is one at the state house right now but it’s been tabled indefinitely apparently.
It has not changed, but the seller pays those fees. As a seller you still pay fees on the tax portion as well. Usually not a ton of money since it's like 8.5% of 6 to 9% but it does add up.
Can you confirm you were charged it today @Aercus when you shouldn't have been charged?
Thank you for taking the time to call them though. It does help. Will give reach out to them tomorrow as well.
Yep, this transaction is from today. I can confirm it was a legal tender coin. Also tax shows up whenever I try to purchase any coin under 500 dollars (I think they are using the bullion and foreign exemption for US coin purchases, which is not right).
Aercus Numismatics - Certified coins for sale
I just called eBay to start the process of fixing the florida sales tax too, and the nice lady is going to submit for a tax refund on my purchase today and also submit a message to their tech department to get the glitch fixed. Hopefully this gets resolved sooner than later.
I have requests for refunds (sale tax) that have gone over 2 months and about 8 follow up phone calls.... no refund yet.
Good luck getting your money back.
I was wondering about all of this. I’m glad for the people going through the battles now, trying to get things fixed. Thanks!
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Yikes. I've had several customers do the same thing and it only took once reaching out then a week or two wait. Sorry to hear that is your experience with it.
I reached out to them this morning and reported the issue as well per @Aercus 's post. They said they forwarded it on to the sales tax team. I know from past experience that there's no way to directly talk to the sales tax team unfortunately, but hopefully they'll clear it up soon
According to this, eBay may be correct depending on what the exact coin is. Bullion under $500 is taxable:
Bullion Sales Tax in Florida
Gold is a precious commodity, and like all purchases and transactions, you might have to pay sales and use tax for the product. In Florida, they treat gold, silver, and other precious metals in very distinct ways. According to the Florida Dept. of revenue, if the product was used as legal tender in the United States, currently or in the past, any transactions involving that product are exempt from sales tax. If the coin is legal tender from another country and it is sold for its face value, than it is also exempt from sales tax. Bullion in the form of nuggets, flakes, or other amounts sold by weight of gold and silver are subject to sales tax. However, the sale or transaction of any bullion, currency, or legal tender which exceeds $500 dollars in a single transaction is also exempt from any sales tax.
Therefore, when investing in gold silver, or other precious metals, you need to decide if it is legal tender, and if so, if it is legal tender in the United States or another country. If it is legal tender, is it considered bullion, in other words is it taken a final shape like a coin. Finally, you must decide how much is taxable, and whether that amount exceeds $500. For instance, if you buy an old American coin worth $300, a foreign coin whose face value is $10 for $100, and a lump of silver worth $200, you pay sales tax on $300 dollars, even though you spent $500 dollars in a single transaction. The American coin is exempt from sales tax. The foreign coin is sold above face value so it is taxable. The bullion is under $500 so it is taxable. Currently the Florida state sales tax is 6%, with local municipalities imposing an additional 1%-2% on average across the state.
As of today 7/2/21 the florida sales tax is gone on all coin and bullion purchases over $500. But it still remains on items items under $500, which I believe is incorrect. Coins (non bullion) should not be taxed at any price. Please continue to call eBay to get this fixed. I will do the same and post updates.
Massachusetts got hit a couple years ago. I remember buying a gold $700 coin for no tax. After the tax implementation I bought another coin for $700 but had to add $50+ tax on it. Now I don’t shop eBay that much. I now go to New Hampshire which is sails tax free
Massachusetts didn't get hit. Massachusetts hit you.
It's not an ebay tax. It's a Massachusetts tax.
I have read the statute. Your point is true, but the coin I purchased was monetized by the us govt and is still legal tender today. Therefore, applying the tax is incorrect. Heritage and great collections have always applied tax correctly for me since the Wayfair decision.
Good news, I had a similar experience to @gradeacoinsebay and had the info forwarded to the tax team. Technology companies live and die on metrics so enough of these pings will get their attention.
Aercus Numismatics - Certified coins for sale
Goobermint = taxes, taxes, more taxes, and even more taxes. When does it end?
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When you die.
That depends on how Florida defines bullion. For example AGES are technically legal tender but that doesn't mean they aren't bullion. NY defines bullion as something that trades based on its intrinsic value. If Florida uses the same definition, your coin could be bullion. [idk, you've never identified it]
Good luck folks. I have to explain to customers all the time that it is the states that require eBay to collect the tax. And then one guy has the gall to ask me to lower MY price to cover the taxes HIS OWN state is imposing! Then promptly told me to "keep it" when I refused.
LOL, Lots a world buyers do the same along with shipping and it is many more $$$$'s
Yes, anyone who complains about sales tax should take a look at VAT and import duties. It can be THIRTY percent!
Yeah, I had an offer from a guy who said "Will you accept a lower offer since there's sales tax on the coin?" I declined, saying "Thanks for your interest, but I don't want to pay your state's tax for you."
Disclaimer: I'm not a tax professional and sure as heck not a Massachusetts tax professional.
I don't know what Massachusetts' laws are, but when I lived in Oklahoma, and before that, Maine, I would have been liable for the taxes on the items I bought in New Hampshire.
A lot of the states have that user tax which is voluntarily reported for out of state purchases. Since it is self reported, it is easy for the poster to simply not pay it even if it's owed.
Bump
I rememeber when after the sup ct ruling impacted coin sales, I mentioned how this could impact the hobby. Instead of support from fellow hobbyist, I heard alot collectors post something like "my state has no tax---not my problem". My initial thought (other than those kind of responses were not very sympathetic) was ---just wait. It will eventually impact everyone.
didn't read the whole thread.
i recently downloaded my full "since managed payments" ebay statement that has a lot of columns, several that may be of interest to those that like knowing where they're money is going and how much, including tax information.
Actually, it appears to me that people have adjusted. After some initial complaints, reticence, and decreased interest, sales are back to normal. [As I predicted.] When the tax is inevitable, you just learn to pay it. Remember, the people being charged tax live in states that charge tax. The only way to "avoid" it is to leave the state for a state which doesn't have such a tax. I think there are only 15 or 16 states that have no tax on coins, if I recall correctly.
True- once your estate pays one last time.......
I agree. However even when it is easy to cheat on your taxes, it doesn't mean you're not cheating.
Consumption State (CT) started collecting taxes on internet purchases a couple of years ago. If you buy $1000 or more in bullion you pay no tax, say from APMEX, not sure about through a platform like Ebay though. What really ticks me off, if I buy a used item on Ebay I pay CT a 6.35% sales tax, which somebody else has more than likely paid a tax on that particular item from the get go.
Absolutely agree.
In fact, I wish states would crack down on coin shows. A lot of sales tax cheating going on at our local coin show. That makes for a very slanted playing field for those who are obeying the laws.
When the Wayfair laws came into effect and a lot of people on the forum were unhappy with ebay, a lot of them just said "I'll stick to buying at coin shows". Since it is THEIR state which requires sales tax be collected, you know what that means: more tax cheating at the local coin show.
@jmlanzaf "Remember, the people being charged tax live in states that charge tax."
I live in a state that has no sales tax on coins & paper money.
For over 9 months ebay has been collecting sales tax for my purchases & sales.
I have requested refunds from ebay and most have been refunded but I have 6 requests that have gone over 2 months with no refund issued. Because of the lack of response to refund sales tax illegally collected by ebay I have had to file a case with law enforcement against them.
Ebay sucks! They will rip you off!
Ebay doesn't keep the money. They remit it to the states.
@jmlanzaf "Ebay doesn't keep the money. They remit it to the states."
Are you able to confirm this or are you able to see their books or payouts?
Or are you just assuming this is the case?
If they are illegally collecting the tax why could they not be illegally keeping it?
I doubt they are keeping it and could even make that distinguishment of illegally collected tax on their own, or they wouldn't be doing it in the first place. That said, I'd just keep reaching out to them. If you can live chat / call / contact on Facebook, probably better than an email.
And while I'm not a CPA and this isn't tax advice, if the amount of money in incorrect tax paid is substantial to you it may be worth talking to a tax accountant to see if there's another route of getting a refund for the incorrectly paid tax.
@gradeacoinsebay "I doubt they are keeping it and could even make that distinguishment of illegally collected tax on their own, or they wouldn't be doing it in the first place. That said, I'd just keep reaching out to them. If you can live chat / call / contact on Facebook, probably better than an email."
I have reached out to them via phone, live chat & facebook and keep getting told you will have a refund within 10 days. I wait 10 days with no refund and call/chat/facebook them again. They tell me we will forward this to the tax team and you will have a refund in 10 days. It's been Groundhog Day for almost 3 months now.
This is one of the messages I got from them in December of 2020 and they still have not corrected the problem and they have distinguished the fact that they are illegally collecting tax.
"We are already aware of the inconvenient you are having with the illegal additional charge of taxes for sales."
I meant that their system itself can't distinguish or they wouldn't be doing it, not referencing your specific situation. Don't know why your claim is taking so long, I'm sorry to hear that. My customers who have had those issues with the sales tax haven't had that kind of trouble in getting a refund, but I've heard other people say the same as you.
To be clear I'm not affiliated with eBay even though it's after my username... I don't remember ever putting it there and used to just be gradeacoins. Would adjust that if I knew how. Hope I didn't give that impression
I think it boils down to which country of crappy customer service you get connected to.
I had an international shipment that I shipped through ebay. It was a seashell...not a coin. The ebay shipping center returned it to me saying it was white listed...which it is not. The email also said I would be refunded the $13 shipping charge! NOT YET!
I have been promised on the phone no less than 5 times I would receive the refund in 48 hours. This has been going on for over 2 months. The last time I called was after I reshipped the seashell to the buyer through the ebay shipping and it was successfully delivered which I pointed out to the 1/2 English speaking rep on the phone! If I decide to waste more time I'm going to demand to speak to a supervisor.
You'll just get passed off to the 1/2 English speaking rep in the next cubicle.
That's too bad, but nothing beats the excise on shipments to foreign countries
I live in Florida and just bought a Carson City mint Gold $10 on eBay. They only charged me 52 cents sales tax on the $8 shipping fee.
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As a CPA I see that taxes do not stop even when you die!
I like to tell myself that the dealers are discounting the coin to make $100 include the sales tax. It may not be true, but it makes me feel better.
bought a tube of ASEs on July 5, paid no sales tax on my FL delivery.
Best to look closely at checkout and then make a decision to proceed are back out.
Latest list of ebay sales tax collections
Repetition of ignorance is ignorance raised to the power two.
FL tax law on coins, currency and bullion
Repetition of ignorance is ignorance raised to the power two.