??? On Sales Tax on Internet Purchases

BAJJERFAN

Will possibly having to pay or collect sales tax on interstate orders (whether that order be placed via phone, electronically or mail) affect your coin buying or selling? Will you be less likely to buy a $1000 coin if there is 8% sales tax? Something to ponder!

k10

I started buying from an ebay dealer in-state, partly because if any shenanigans took place, I could handle it through the courts pretty easily. They treat me pretty good, and have decent raw coins. I have to remind them every time to add sales tax. Doesn't really affect my bidding.

Lightside

In Ohio, there is not sales tax on the sale of coins. There is a 6.75% sales tax on coin collecting supplies.

LincolnCentMan

I have to collect 8.25% on all Texas invoices under $1000... reguardless of how they are sold. If they have a valid tax number, then they dont have to pay the tax. I rarely bought from Heritage b/c of the tax issue before I opened my buisness. Now, since I dont have to pay the tax on their items, I buy from them more frequently. Also, I'm certain I loose Texas bidders b/c I have to collect tax. So yes, I think the tax issue definatly affects the buying/selling of coins.

David

Placid

Yes I would have to figure the tax into my bid.

jdimmick

I dont buy higher priced Items locally for that reason.

XpipedreamR

Here in Illinois, there is no tax on coins. I'm not sure what the rationale for this is as opposed to tax on any other type of merchandise, but I like it!!! It does seem to me to be a little cheesy of the state to add tax on to such a volatile, arbitrarily valued item.

Any tax attorneys out there know anything about this?

If I wanted a particular coin. I probably wouldn't balk at having to pay the extra X% on that particular coin. My total number of purchases would decrease, though, as my available coin funds would decrease by an additional X% for each coin I did buy.

291fifth

If there is an 8% tax then there would be no purchase.

lathmach

No tax on coins here in Michigan.

Ray

BigAlan

The person to pity is the poor smuck that has to maintain the tax database, what, where, how much?

razorface1027

Those that have partaken in this thread, especially those individuals that charge sales tax; do you own stores outside the internet realm?... Can the feds intervene on, let's say, internet auctions?

cosmos66

I have seen some ebay auctions where the seller says that if you live in the same state they will charge you sales tax.

BAJJERFAN

If you sell to an eBayer in your same state you must collect sales tax as applicable because it is an intrastate sale and the manner in which the sale/merchandise or service was conveyed is irrelevant.

abuell

I always pay the Oregon state sales tax on everything that I buy! I simply add the required 0%.

razorface1027

Is this based on sales volume? One must possess a tax I.D.# to charge sales tax. If this were so at eBay, why did they not express this in their seller R&R?

mgoodm3

The Oregon sales tax is the way to go baby, nada. I was looking at a new digicam in Seattle a couple weeks ago and was about to buy one. My brother-in-law said that I would have to pay almost 10%. I'll save my money and buy things here. I'm not going to fund WA's bills if I can avoid it.

Bochiman

Mgoodm3....you should have bought it in Seattle....you should fund us
Heh.....yes, you guys don't have sales tax down south. I should go there and buy more, but I don't think it is worth the ~5-6 hour roundtrip.

For coins, I think I have paid tax at a local shop, but I don't pay taxes at coin shows (not sure why the double standard, but I am fine with it ).

If everything over the net were to have tax added, then, I would be a lot less inclined to buy over the net, especially larger purchases....of course, my largest amount bought at any 1 time has been about the same for 3 items (all are 1 oz lunar gold coins from australia) so they are nowhere near what some of you pay (mine have been $400-$500).

Now, can you imagine paying $10,000 for a coin at a heritage auction, then the juice on top of that AND the tax on that?

foodude

In MN , the land of 10,000 lakes, and 10,000 taxes, I think they charge tax even if you are the under bidder and lose, but the under bidder rate is only half the normal 15%


... okay so I'm exagerating a bit ....

Deadhorse

I intentionally don't bid on items from any seller in Texas because of the sales tax. I don't make purchases from local shops for the same reason.

If you add in the 8.25% to your cost, it often makes the purchase unviable from my perspective. Only if I am buying something more expensive and it reaches past the $1000 limit will I even consider it.

Recently, I have found one local shop that works a deal with me on the same high-end Morgan, I buy it to put the price over the limit and sell it back to him immediatly at the same price.

TWQG

I have to avoid California sellers unless it's over $1000

construct

I figure the tax against my bid. That may mean I don't win the item from a seller in state. Oh, well.

As for Heritage, in Texas there is a tax exemption for numismatic transactions over $1000. You can't find two of their coins that you like? If you're out of state you don't pay tax on it anyway.

BigD5

An internet tax is coming, whether it be 5 years from now, or 10 years from now. There is too much commerce being conducted via the internet, not just Ebay, for the individual states not to intervene for their share of the pie. With most states running a deficit, look for something to happen, internet tax wise, sooner as opposed to later.
With that said, if you are selling online as a business, it would be in your best interest to be filing the proper tax information with your home state. I live in N.H., so I don't have any tax liability with coin sales, but when I sell items in Massachusetts under $1k, I am liable for that tax. It's a fairly simple process to obtain a state tax number, and the paperwork isn't obscene, but it could be easier.
Razorface, Ebay isn't responsible for informing you of your tax liability within your given state, or with the government. You have to get that information all on your own.

1jester

Taxes are definite commerce killers.

BAJJERFAN

Well the internet tax is essentially an extension of the mail order tax or exemption therefrom since buying over the net is just a different form of mail order. At the current time I believe that according to federal law merchants are not required to collect sales taxes from out of state customers. That is if I live in Iowa and purchase from a merchant in Alabama the AL merchant is not required to collect sales tax for Iowa. Of course this would apply to more than coins. With the states hurting for revenue they are trying very hard to get their share of the pie.
I say if you are a merchant then expand your sales base by joining the net crowd. Also sell something that I want for a fair price.
All I know is that if I am required to pay taxes on out of state purchases I will either buy less or find other ways to complete my transactions.

1jester

The higher taxes go, or the stricter the enforcement, the more people will turn to the black market or bartering.

Talk about progress...

razorface1027

Razorface, Ebay isn't responsible for informing you of your tax liability within your given state, or with the government. You have to get that information all on your own

Big D5;
Let's say that I'm simply deviating stock at a substantial loss to move on to the more satisfying aspect of coin COLLECTING (EXPANDING). I can't even be considered as a VOLUME vendor.