[corrected] Pennsylvania repeals sales tax on coins, bullion

kranky · July 5, 2006 8:50PM

The state club, PAN, has been lobbying hard for this for a number of years and this year they made it. As of September 4, there is no sales tax on coins and bullion in PA. In the last year, both Ohio and PA have flipflopped on this issue - Ohio instituting sales tax on coins, and PA repealing it.

An obscure feature of the previous law was the sales tax on coins only applied to the sale price in excess of face value, but I don't know anyone who bothered to factor that into the calculations.

[edit to correct effective date of the repeal - it wasn't July 1 as I was told originally]

CoinValuesResearcher · July 5, 2006 9:25PM

Just curious, what is the sales tax in PA?

This indeed does sound like good news for collectors and dealers doing business in the state.

Do surrounding states still charge sales tax on coins and bullion? If so, I can imagine dealers located near the state border on the PA side can look for a selling increase for big ticket items from out-of-staters wanting to avoid their state's sales tax.

Jcarney · July 5, 2006 9:36PM

Sales tax in PA is 6% with an additional 1% within the city limits of Philadelphia. Unprepared food and most clothing is exempted.

keets · July 5, 2006 9:36PM

i don't recall ever paying sales tax in Pennsylvania or noticing a difference in price because of the law.
i haven't been charged sales tax in Ohio or noticed a change in price because of the law.

so far as i can tell this whole Ohio tax issue has been ramped up here at the forum and nowhere else, i've never heard more than a whisper at shows or from anyone who should have been affected.

Barry · July 5, 2006 9:42PM

Sales tax in PA is 6%. In Phila (and Pittsburgh?) it's 7%.

No dealer, at our local shows, ever tried to chrage sales tax, anyway.

What is and isn't taxed is so typical of the political BS that goes on. For example, there's no sales tax on clothes, but a few years ago they decided to add sales tax on labor. So, the guy who cuts my grass charges sales tax! Also strange is the collection agency that I use in my office charges sales tax when they turn over MY money collected from deliquents.

Another very odd PA law currently being debated in the newspapers - it is legal to sell fireworks in PA, but only to out-of-staters. The odd thing is it's illegal in neighboring states. Locally, there's a fireworks store, right on the NJ border, selling to NJ residents. NJ is all pissed off about it.

keets · July 5, 2006 9:46PM

it used to be illegal to consume(!!!!!) fireworks in Ohio but you could still buy them at certain locations within the state. the presumption was that you would be taking them out of state to light.

there are some stupid laws on the books of every state because there are stupid and lazy legislators and processes in every state. it's really inexcusable in this day and age of computers and electronics.

kranky · July 5, 2006 9:59PM

It's 7% sales tax in Allegheny County, which includes the city of Pittsburgh.

If the tax wasn't charged separately, it was built in to the price. At PAN shows, the PA Dept. of Revenue would send someone around to every table checking for sales tax licenses. No one could run a table and be invisible to the taxman. I know I rarely saw it itemized on an invoice, but I have seen it done.

Jcarney · July 5, 2006 9:59PM

<< but a few years ago they decided to add sales tax on labor. So, the guy who cuts my grass charges sales tax! >>

I didn't know that. I know that there is no sales tax on home repairs/renovations. We just had a fence put up in the back yard and our kitchen remodeled last year and didn't pay any sales tax.

TheRaven · July 5, 2006 10:28PM

I would say that typically the tax "is included" when I have purchased my coins and I have asked about tax on larger purchases (gold coins)..... Sunday at the local show I was changed tax on 1 of my 4 purchases, but it only added $1.25 to the price so I did not care.....

Maybe this will help get the tax repealed here in Ohio.....

PhillyJoe · July 5, 2006 11:33PM

Hey, kranky, nice job on this. I hadn't heard a word. Always annoying when I win an ebay item from a PA resident and I have to kick in an extra 6%; not knowing whether or not he remits to the state.

Joe

Julian · July 5, 2006 11:48PM

That is great news. It will certainly help as far as I am concerned.

Barry · July 5, 2006 11:57PM

<< 

<< but a few years ago they decided to add sales tax on labor. So, the guy who cuts my grass charges sales tax! >>

I didn't know that. I know that there is no sales tax on home repairs/renovations. We just had a fence put up in the back yard and our kitchen remodeled last year and didn't pay any sales tax. >>

John - Any home improvements that are permanent fixtures are not taxable.

Another strange one is shipping. If you buy stamps or ship UPS, there's no tax. However, if you buy something mailorder (from within PA), shipping is taxable.

BillJones · July 6, 2006 12:09AM

One less state that charges sales tax on coins and bullion!

The only people the effects and hurts are the honest ones. The rest evade the law and only get hurt on rare occasions.

CIVITAS · July 6, 2006 3:58AM

Iowa recently repealed their sales tax as well. So now MN, IA and IL all charge no sales tax on coins and bullion (not sure about MI). Guess where a lot of the WI business is going to go.

<< The only people the effects and hurts are the honest ones. The rest evade the law and only get hurt on rare occasions. >>

Ain't that the truth. We'll get audited because we're incorportated, but the part timers and small timers just do it all cash and don't file/report. Hard to prove something like that. But if we forget a single cent.........

ddbird · July 6, 2006 4:03AM

Sales tax in PA...psssh..

We PA'ers just flee to Deleware to buy our expensive goods

rhedden · July 6, 2006 4:12AM

As a Pennsylvania resident, I am surprised and delighted to see this happen. I am tired of seeing Ebay sellers from PA who want to hit me with an extra 6% on their coins. Hopefully, this will lead to an increase in the number of coin shows held in the state of PA. Sales tax on numismatic investments makes absolutely no sense to me and should be repealed in all 50 states.

rec78 · July 6, 2006 1:18PM

I wonder how many dealers haven't heard of this yet - Probably every one i try to buy from.

What i dont like is Maryland charges tax on coins sales under $1000. (i am going to Baltimore on Friday) Why is this? The small buyer gets hammered with sales tax but the wealthy purchaser does not. i do not get the reasoning behind this--shouldn't it be the other way around?

ABC123 · July 6, 2006 1:20PM

It's all a matter of time and $$$$

rec78 · July 6, 2006 1:21PM

This certainly is good news as a few auction companies have started to charge me Pa. sales tax on coin purchases even though they operate in Texas or California.

Coindexter · July 6, 2006 1:37PM

There are many counties and municipalities within Pennsylvania that charge a sales tax over and above the state's 6%.

BillJones · July 6, 2006 11:59PM

<< Sales tax in PA...psssh..

We PA'ers just flee to Deleware to buy our expensive goods

>>

But Delaware has a high progressive state income tax to make up for it.

But I agree with you. Sales taxes suck. It is totally unfair that you can deduct a state income tax on your federal tax return, but can't do the same with sales taxes. In some states, like Florida, a lot of the state revenue comes from sales taxes since there is no income tax.

The worst state right now has got to be New Jersey. The voters there keep electing liberal Democrats and end up getting screwed. From the tax perspective, New Jersey is now as unattractive as New York. If I lived in New Jersey, I'd support impeaching that crummmy governor they just elected. He's a liar and knit-wit.

kranky · July 16, 2006 10:32AM

I was given bad info on the effective date - I corrected the first post.

[corrected] Pennsylvania repeals sales tax on coins, bullion

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