Internet sales taxes on coins
Dice21
Posts: 448
Over the last few years I have read that states are trying hard to collect sales taxes on internet transactions. I have always thought US mint coins were exempt from taxes of any kind (both fed and state). Is this correct and if not what defines the law on collecting taxes on US coins?........Thank you
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Comments
<< <i>If you buy a coin from someone in the SAME state and that state charges sales tax on coins, then you will be taxed. Other states, no worries, for now anyway. >>
So, does this mean that folks in Indiana pay Sales Tax on US Mint Products?
If not, why not?
Denver, Colorado?
Philadelphia, Pennsylvania?
San Francisco, California?
Or is the Federal Government exampt from having to collect "State" Sales tax?
The name is LEE!
When a site doesn't collect sales tax, consumers are technically responsible for remitting any unpaid sales tax on online purchases directly to their own state.
Consumers who live in a state that collects sales tax are technically required to pay the tax to the state even when an Internet retailer doesn't collect it. When consumers are required to pay tax directly to the state, it is referred to as "use" tax rather than sales tax.
The only difference between sales and use tax is which person -- the seller or the buyer -- pays the state. Theoretically, use taxes are just a backup plan to make sure that the state collects revenue on every taxable item that is purchased within its borders. But because collecting use tax on smaller purchases is so much trouble, states have traditionally attempted to collect a use tax only on big-ticket items that require licenses, such as cars and boats.
That, however, may be changing. Many states have reevaluated their attitude towards collecting use taxes. For example, New York state has added a line to income tax returns requiring all residents to calculate how much they should pay on Internet, mail order, or out-of-state purchases. California has begun a campaign to educate taxpayers on what's owed, as well. Watch for more states to step up use tax collections
Five states don't have a sales tax -- Alaska, Delaware, Montana, New Hampshire, and Oregon.
Sales tax on the internet
Exit bunker, enter Matrix. LOL
<< <i>Simple states can't tax the Federal government.
i remember years back the state tried to tax stamps at the usps. that didnt work either
My Collection of Old Holders
Never a slave to one plastic brand will I ever be.
<< <i>Part of the reason I ask is because Illinois statute's read that no US coin or currency is subject to sales tax. The coin or currency must be minted or printed by the US government. So would this apply to resales of the same coins or currency???..........A blanket sales tax law seems to go against this statute......... >>
What they are saying is that foreign coins and currency are taxable the sales tax exemption is for US made items only.
"No taxation without representation".
"The only place success comes before work is in the dictionary."
~ Vince Lombardi
The tax is due on coins under $1000, so I don't buy impulse purchases.
<< <i>Was'nt overtaxation one of the reaons for people leaving the "old world" >>
Or taxation without representation.
bob
<< <i>Taxes by town, city, state, federal governments are, IMO, what is pushing people to the breaking point. Sooner or later, people must say 'enough'...Cheers, RickO >>
People might say "enough!," but that won't stop the taxation.
The answer is to get the national economy moving again, and then tax receipts will go up for state and local government. That will require "change."
<< <i>Taxes by town, city, state, federal governments are, IMO, what is pushing people to the breaking point. Sooner or later, people must say 'enough'...Cheers, RickO >>
People are at the breaking point, they are in the streets of America protesting. And guess what, they are not protesting taxes, in fact, I bet most of them want higher taxes.
<< <i>Part of the reason I ask is because Illinois statute's read that no US coin or currency is subject to sales tax. The coin or currency must be minted or printed by the US government. So would this apply to resales of the same coins or currency???..........A blanket sales tax law seems to go against this statute......... >>
In IL, then, yes, there is no tax on a US-minted coin. In states that do have a sales tax on coins, the exemption would be those sold directly by the US Mint, because it is a Federal entity which cannot be taxed by the states. Once a US Mint product is re-sold (whether it be a modern or classic issue), it is subject to sales tax as the retailer is no longer the government.
<<Simple states can't tax the Federal government.>>
When I worked for the military and traveled under Federal government directed travel orders. Hotels refused to exempt us from paying the state tax. They were supposed to do this if we presented government travel orders, and rooms payed for by the federal government. In 30 years of traveling i think maybe three hotels were willing do this or even knew the law. With all the federal government travelers out there thats alot of state taxes Uncle sam pays
Krueger
<< <i>When I worked for the military and traveled under Federal government directed travel orders. Hotels refused to exempt us from paying the state tax. They were supposed to do this if we presented government travel orders, and rooms payed for by the federal government. In 30 years of traveling i think maybe three hotels were willing do this or even knew the law. With all the federal government travelers out there thats alot of state taxes Uncle sam pays >>
Yep. I work in a hotel and you must pay with a government credit card or check in order to be exempt from GA state taxes. Local taxes do not require this- just a form. With the Federal Law Enforcement Training Center here (aka "Club Fed"), we get a lot of government guests.
Bob
<< <i>"No taxation without representation". >>
Oh, you're represented alright. Just not particularly well.
60 years into this hobby and I'm still working on my Lincoln set!