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Sales Tax on Coins Question

If your state doesn’t collect tax on coins and eBay collects it anyway is there a way to get your money back from them. I have avoided purchasing more expensive coins for that reason

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  • 1madman1madman Posts: 1,287 ✭✭✭✭✭

    Have to call eBay and they will partner with their tax team to initiate a refund. It was taking over 90 days to get the refund, but they always get the problem resolved.

  • I was charged tax once a couple years ago on a purchase, probably 15 calls to ebay over 8-9 months. Never got past "we'll look into it and you'll hear something in a couple weeks". Finally gave up on it.

    I didn't notice the tax until after I paid. Now I always look and will have it removed before paying if it happens again.

  • blitzdudeblitzdude Posts: 5,430 ✭✭✭✭✭

    No taxes on coins and bullion up here in The Commonwealth. God bless The Commonwealth. RGDS!

    The whole worlds off its rocker, buy Gold™.

  • ashelandasheland Posts: 22,671 ✭✭✭✭✭

    No tax on coins or currency in North Carolina but a couple years ago they did it a couple of times to me after several calls I did finally get the money back about two months later.

    Just bought a piece of currency today in fact, and didn’t have any issues so they apparently got it fixed on my end.

  • ifthevamzarockinifthevamzarockin Posts: 8,498 ✭✭✭✭✭

    @pocketpiececommems said:
    If your state doesn’t collect tax on coins and eBay collects it anyway is there a way to get your money back from them. I have avoided purchasing more expensive coins for that reason

    It took me 6 months and about 12 phone calls to get my money back. :/
    I quit buying off ebay because of it.

  • BStrauss3BStrauss3 Posts: 3,144 ✭✭✭✭✭

    If a vendor collects and remits tax in error, only they can receive the tax back from the state. That's a generalization, but the various states differ in how difficult they make it to recover the overpayment.

    For example, here in Taxas they require a NOTARIZED form to pay out the overpayment to somebody other than the emitter. So you are screwed either way. eBay hopes you give up and go away. Meanwhile, they took an offset on next month's remittance as soon as you reported the issue.

    -----Burton
    ANA 50 year/Life Member (now "Emeritus")
  • SEEMS TAX IS ALSO ADDED ON SHIPPING.

  • airplanenutairplanenut Posts: 21,898 ✭✭✭✭✭

    @DADRISCOLL said:
    SEEMS TAX IS ALSO ADDED ON SHIPPING.

    Shipping is taxable in some states

    JK Coin Photography - eBay Consignments | High Quality Photos | LOW Prices | 20% of Consignment Proceeds Go to Pancreatic Cancer Research
  • orevilleoreville Posts: 11,779 ✭✭✭✭✭

    @ifthevamzarockin said:

    @pocketpiececommems said:
    If your state doesn’t collect tax on coins and eBay collects it anyway is there a way to get your money back from them. I have avoided purchasing more expensive coins for that reason

    It took me 6 months and about 12 phone calls to get my money back. :/
    I quit buying off ebay because of it.

    Same here.

    A Collectors Universe poster since 1997!
  • BAJJERFANBAJJERFAN Posts: 30,987 ✭✭✭✭✭

    I haven't bought a coin via eBay since they started collecting sales tax, The STATE charges it, but eBay et al COLLECT it. Contact your state dept of revenue.

  • DropdaflagDropdaflag Posts: 769 ✭✭✭✭

    Since the tax is not really owed to some states, does E-bay keep the money? Might be why they are in no hurry to address it.

  • BAJJERFANBAJJERFAN Posts: 30,987 ✭✭✭✭✭

    @Dropdaflag said:
    Since the tax is not really owed to some states, does E-bay keep the money? Might be why they are in no hurry to address it.

    The should be looking into why their system is still collecting it when it shouldn't be.

  • ifthevamzarockinifthevamzarockin Posts: 8,498 ✭✭✭✭✭

    @BAJJERFAN said:
    The should be looking into why their system is still collecting it when it shouldn't be.

    They have known about it for 4 years and have done nothing to correct the problem. :/
    If it were costing them the amounts they are illegally collecting they would have corrected the problem long ago.
    It is just another source of revenue for ebay and they will not stop because they are making money from it.

  • BStrauss3BStrauss3 Posts: 3,144 ✭✭✭✭✭
    edited February 26, 2024 10:21AM

    It's really quite simple, and it's why there are several companies whose entire business revolves around software to collect and remit sales taxes.

    SALES TAXES are blasted complex.

    Texas imposes a 6.25 percent state sales and use tax on all retail sales, leases and rentals of most goods, as well as taxable services. Local taxing jurisdictions (cities, counties, special purpose districts and transit authorities) can also impose up to 2 percent sales and use tax for a maximum combined rate of 8.25 percent.

    https://comptroller.texas.gov/taxes/sales/

    Well, not that simple

    Texas Administrative Code

    TITLE 34 PUBLIC FINANCE
    PART 1 COMPTROLLER OF PUBLIC ACCOUNTS
    CHAPTER 3 TAX ADMINISTRATION
    SUBCHAPTER O STATE AND LOCAL SALES AND USE TAXES
    RULE §3.336

    https://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=34&pt=1&ch=3&rl=336

    (a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.
    (1) Bullion--Gold, silver, or platinum that is formed into uniform shapes and quantities such as ingots, bars, or plates, with uniform content and purity, as are suitable for or customarily used in the purchase, sale, storage, transfer, and delivery of bulk or wholesale transactions in gold, silver, or platinum.
    (2) Currency--The coin and paper money of the United States or another country that is designated as legal tender and circulates and is customarily used and accepted as a medium of exchange in the country of issuance.

    ...

    (b) Taxability of sales of gold, silver, or numismatic coins, and gold, silver, or platinum bullion. Effective October 1, 2013, the sale of gold, silver, or numismatic coins or of gold, silver, or platinum bullion is exempted from Texas sales and use tax.

    Simple, right, that 1/10oz AGE is not taxable. Except, while it is a bullion coin, it's not an ingot, bar, or plate. AND

    ` (3) Numismatic coin--A coin that is not used as a medium of exchange or whose price depends more on characteristics such as beauty, rarity, and condition than on its metal content or its face value.

    AGEs track bullion prices with a premium. Is that numismatic? Maybe Maybe not

    And,

    ` (1) This exemption does not include gold, silver, or numismatic coins, or gold, silver, or platinum bullion in the form of jewelry or other items of adornment.

    Stick it in a bezel on a neck chain (the bezel and chain aren't bullion so are taxable) AS is the AGE!!!!

    How does fleaBay know? Well, the software scans the listings for keywords, looks at the categories it was listed in, and applies some Kentucky windage (i.e. guesses). If it guesses wrong, some % of people will complain, a human eyeballs things, and an adjustment is made. If people don't complain, the tax is remitted to the state and nobody cares.

    Now there are 56 states, commonwealths, territories, etc.

    Plus some county / city / other jurisdictions that have their own tax rules.

    https://tax.colorado.gov/sites/tax/files/Sales60.pdf

    GENERAL INFORMATION
    Retail sales of coins and precious metal bullion are exempt from sales tax. This exemption applies to state, Regional

    Transportation District/Scientific and Cultural Facilities District, county and state-collected local taxes. Please contact
    home-rule cities for their regulations

    and

    Not all numismatic pieces are exempt. Precious metal bullion and coins that are or were at one time used as
    currency or medium of exchange in the United States or a foreign country (such as quarters, dimes, nickels and
    pennies) are exempt. However, numismatic pieces such as paper money, tokens, checks, wampum and similar
    items not specifically exempt from taxation do not fall under this exemption. Transactions involving the sale of
    jewelry and commemoratives continue to be taxable.

    That AGE (or ASE) has a value, it's legally a coin, so to Colorado, it's (probably, I'm not a lawyer) exempt. Take that exact same planchet, strike it with Greatest Generation dies, it's a commemorative and it's taxable.

    Lather, rinse, repeat...

    -----Burton
    ANA 50 year/Life Member (now "Emeritus")
  • BAJJERFANBAJJERFAN Posts: 30,987 ✭✭✭✭✭

    @ifthevamzarockin said:

    @BAJJERFAN said:
    The should be looking into why their system is still collecting it when it shouldn't be.

    They have known about it for 4 years and have done nothing to correct the problem. :/
    If it were costing them the amounts they are illegally collecting they would have corrected the problem long ago.
    It is just another source of revenue for ebay and they will not stop because they are making money from it.

    Here in Iowa there is a form you get from the dept of revenue. I believe that you have to provide a copy of the item sale showing the tax that was improperly collected. There may be a minimum that they will mess with. Now is probably not a time to expect prompt service.

  • JBKJBK Posts: 14,717 ✭✭✭✭✭

    I'm assuming (maybe incorrectly) thar ebay just turns the tax over to the states. So Ebay doesn't care, and they states certainly don't, either, since it's free money for them.

    Maybe someone needs to initiate a class-action lawsuit against eBay. That will guarantee a response.

  • BStrauss3BStrauss3 Posts: 3,144 ✭✭✭✭✭

    eBay won't care. They will simply say that the seller didn't properly identify the item and they did the best they could and remitted the tax collected.

    -----Burton
    ANA 50 year/Life Member (now "Emeritus")
  • privatecoinprivatecoin Posts: 3,178 ✭✭✭✭✭

    Ebay likely won't care until there's an expensive enough lawsuit about it.

    Paper money eventually returns to its intrinsic value. Zero. Voltaire. Ebay coinbowlllc

  • ProofCollectionProofCollection Posts: 5,377 ✭✭✭✭✭

    When they first started collecting tax I had a few transactions where that happened but unlike the others here mine was cleared up very quickly with one contact to customer service.

    One approach you might take if you're not getting the correct response is to make a consumer complaint to you state attorney general office and they should forward your complaint to ebay's legal dept who will probably make sure this gets taken care of.

  • johnny010johnny010 Posts: 1,074 ✭✭✭✭✭

    Had this happen late last year. eBay case filed with their tax department …was told wait six months for a decision.

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