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Customer from Vermont wants to buy gold

ChessmanChessman Posts: 1,602 ✭✭✭
in Precious Metals
I got a call from this fellow I have known for a while who wants to buy gold for cash at the best price. The only problem is Vermont requires sales tax on precious metals. So I contacted the state of Vermont on what the law is. I got this response:

"Stamps and other philatelic items or other precious metals when purchased for other than
use as postage; coins and other numismatic items when purchased other than for use as a
medium of exchange is subject to sales or use tax. Reg. § 1.9701(7)-1(A).

"If you have further questions concerning this matter please contact a business tax
examiner at (802) 828-2551 option 3.

"Please contact a business tax examiner at 802-828-2551 option 3 for further assistance."

I am from Connecticut, but I do have a sales tax certificate from Vermont. I could just direct him to a Massachusetts dealer who would gladly sell him U.S. eagles at around $80 over current spot price. Thoughts?

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    guitarwesguitarwes Posts: 9,240 ✭✭✭
    "...coins and other numismatic items when purchased other than for use as a
    medium of exchange is subject to sales or use tax.

    Trade his cash for the same amount of face value Gold Amercian Eagles on the books. Stick the rest of the cash in the safe.

    Is it weird that the song "The Tax Man" is on the radio right now as I type this? No joke.
    @ Elite CNC Routing & Woodworks on Facebook. Check out my work.
    Too many positive BST transactions with too many members to list.
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    derrybderryb Posts: 36,214 ✭✭✭✭✭
    send him to a reputable online bullion dealer out of state. There are many to choose from including tulving.com (volume dealer), dbscoins.com, apmex.com, moderncoinmart.com and gainsvillecoins.com.

    Out of state purchase will avoid state taxes (for now).



    << <i> am from Connecticut, but I do have a sales tax certificate from Vermont. I could just direct him to a Massachusetts dealer who would gladly sell him U.S. eagles at around $80 over current spot price. Thoughts? >>


    I believe your Vermont tax certificate is used to help you avoid paying sales taxes on items you buy in Vermont for resell and has nothing to do with what you sell in Vermont. Most states, and probably Vermont, require an in-state buyer to report and pay in-state sales tax on items purchased out of state (almost no buyer reports/pays it, thus the recent effort to have it done with new federal requirements).

    I believe you could make this out of state sale and not be liable for the other state's sales tax (your buyer would be liable to his state). Currently states cannot require an out of state seller to pay in-state sales tax unless that seller has a physical location within the state. Large retailers with an on-line presence are a good example of this as they are located in more than one state and are now supporting the new federal legislation because it would put them on a more level playing field (state sales taxes) with their smaller competitors.

    Give Me Liberty or Give Me Debt

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    rickoricko Posts: 98,724 ✭✭✭✭✭
    I believe derryb is correct.... the buyer must declare and pay tax in this case, not the seller. Cheers, RickO
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    BaleyBaley Posts: 22,658 ✭✭✭✭✭
    Agreed

    Liberty: Parent of Science & Industry

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    derrybderryb Posts: 36,214 ✭✭✭✭✭


    << <i>as long as the transaction is done out of state. >>


    getting a clear definition on that is a whole new bucket of worms.

    Give Me Liberty or Give Me Debt

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    TwoSides2aCoinTwoSides2aCoin Posts: 43,856 ✭✭✭✭✭
    Service your customer
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    CaptHenwayCaptHenway Posts: 31,564 ✭✭✭✭✭
    And if he ever gets caught, he is going to inform on everybody who ever sold him metals without charging the taxes.

    Not worth the risk.
    Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
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    AcesCrackedAcesCracked Posts: 189 ✭✭
    I would send him to any local coin show and I guarantee there will be buyers and sellers who love cash and no paperwork. I have always said get to know a good Brick and Mortar shop and you will never need to worry. When the SHTF in the 80's our shop only bought from our local customers. We turned down many a 100 oz poured bar so that we could service our customers who were bringing in past purchases.
    I have been to many local shows where dealers had cash in the showcases as just buyers and they were getting all the panic sellers when silver started dropping.

    Just some thoughts

    Tom
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    BAJJERFANBAJJERFAN Posts: 30,992 ✭✭✭✭✭


    << <i>I would send him to any local coin show and I guarantee there will be buyers and sellers who love cash and no paperwork. I have always said get to know a good Brick and Mortar shop and you will never need to worry. When the SHTF in the 80's our shop only bought from our local customers. We turned down many a 100 oz poured bar so that we could service our customers who were bringing in past purchases.
    I have been to many local shows where dealers had cash in the showcases as just buyers and they were getting all the panic sellers when silver started dropping.

    Just some thoughts

    Tom >>




    My local B & M will only sell $10K of PMs to one person for cash and after that it's by check.
    theknowitalltroll;
    MY COINS FOR SALE AT https://www.pcgs.com/setregistry/collectors-showcase/other/bajjerfans-coins-sale/3876
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