Indiana Sales Tax Law Change
Branchmint
Posts: 46 ✭
FYI - last Thursday (March 24), Indiana Governor Pence signed HB 1046. As of July 1, 2016, this will provide sales tax exemption for transactions involving the sale of: (1) coins that are permitted investments by an individual retirement account under federal law; (2) bullion that is a permitted investment by an individual retirement account under federal law; or (3) legal tender.
Many thanks to Silvertowne, which was instrumental in lobbying the Indiana legislature to get this bill through.
Many thanks to Silvertowne, which was instrumental in lobbying the Indiana legislature to get this bill through.
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A great benefit to Americans who want to set aside a nest egg. The tax will hit again at retirement or through inheritance.
Aren't almost all coins legal tender?
So long as the government exists which minted them. Then in that place, they are. Or, until legislators meet and change /repeal the law.
Never ending.
Aren't almost all coins legal tender?
I believe the US Trade Dollars were demonitized, therefore, wouldn't they no longer qualify as legal tender?
Aren't almost all coins legal tender?
I believe the US Trade Dollars were demonitized, therefore, wouldn't they no longer qualify as legal tender?
They were remonetized in 1965.
Keeper of the VAM Catalog • Professional Coin Imaging • Prime Number Set • World Coins in Early America • British Trade Dollars • Variety Attribution
Aren't almost all coins legal tender?
The foreign coins and U.S. tokens are not legal tender. That makes it harder for those who deal in those areas.
But if I hear someone ELSE wants an exemption, ("I collect/invest in diamond earrings! Gold Watches! Classic Cars! Fashions! Cabbage Patch Kids!! Whatever!!"), I'm thinking they are just writing a loop-hole for the people with too much money on their hands.
Probably the most strange is the California (and other states) laws that only exempt sales over some minimum amount. Talk about a gift to the rich, and a head-scratcher to the poor who can't imagine buying at that level....
(My job is to make us feel guilty. You may go now....or make the twisted arguments that US money is somehow different than Cabbage Patch Kids).
It's good to see Indiana in the forefront on something like this as well.
(and I always wanted to use this emoticon
Taxes repealed to me, is the equivalent of enriching the people… though I understand it's delicate nature.
Yep. Government has gotten so greedy that any tax break is welcome. Sadly we have hit the situation where some politicians pit one class against another to get elected. What people don't understand, or don't want to understand is that those who are successful with new ideas or who have capital to invest in good ideas are the people who create the jobs. Jobs creation boosts tax revenues, which supports government services, and encourages people to do positive things for themselves.
I think that's surprising because that's a lot of tax dollars the State is missing out on.
Gov. Brown and the Socialist legislature passed a bill yesterday raising the minimum wage to $15 an hour by 2021.
They are also building a high speed rail from LA to San Francisco at a cost of $20 billion dollars that no one will use because you can fly there in 40 minutes for $85.
People get the government they deserve, so be happy the people in Indiana are smarter than those here in California.
What people don't understand, or don't want to understand is that those who are successful with new ideas or who have capital to invest in good ideas are the people who create the jobs. Jobs creation boosts tax revenues, which supports government services, and encourages people to do positive things for themselves.
...all of which has NOTHING to do with cherry picking which luxury items should, or shouldn't, be taxed. (Unless you are suggesting that this is a pro-coin dealer jobs creation program?)
Now, I understand bullion as an investment vehicle being tax exempt. One chuck of gold is the same as any other, (provided the "chunks" have been coined, or otherwise authenticated...bars, etc.). Bullion IS an alternative form of investment, first and foremost.
(Kind of like one share of Apple stock is pretty much like another. You don't buy it to look at it, enjoy it, or share it with fellow investors....you buy it in hopes that it increases in value).
But why would a Lincoln cent, or Washington Quarter, or $20 classic gold coin, graded for quality, priced based on mintmarks, quality, color, rarity, etc., and bought (most often) for enjoyment and hobby purposes be tax exempt? Couldn't my example of a Cabbage Patch doll be the same? Diamond necklaces? Classic car auto parts? Sure, they all may increase in value. But at heart, they are consumer goods, and not investments.
And for my pet peeve, why exempt ONLY purchases over $1000, (or similar limit)? If gold bullion, (or Lincoln cents), are exempt, they should be exempt no matter if you buy $10,000 worth, or $100 worth in $1 installments.
But, more to my point, I don't agree with the stance that luxury items, be they coins or anything else, should be tax exempt. Claiming some advantage to the economy created by the privileged rich, (or upper middle class), in this context is just silly. Yeah, I would benefit more than your average citizen....but I like to think I'm not selfish enough to think I "deserve" it more than people who buy big-screen TV's, lawn fertilizer, or roofing shingles.
In short....it's a tax loophole created for the people who really don't require tax loopholes....just like most loopholes. Coin collectors, dealers, and industry trade groups, have the opportunity to catch the ear of congressmen, while those living paycheck-to-paycheck just have to hope someone notices them.
(Being that this post deals with tax exemption of coin purchases, I will contend it is coin related, and not a political statement. Well, mostly).
Aren't almost all coins legal tender?
The foreign coins and U.S. tokens are not legal tender. That makes it harder for those who deal in those areas.
Unless the law specifically says legal tender for the US, I would say world coins are legal tender too.
In the Peoples Republic of California, invoices for coin sales under $1500 are subject to sales tax and above $1500 are not.
I think that's surprising because that's a lot of tax dollars the State is missing out on.
Gov. Brown and the Socialist legislature passed a bill yesterday raising the minimum wage to $15 an hour by 2021.
They are also building a high speed rail from LA to San Francisco at a cost of $20 billion dollars that no one will use because you can fly there in 40 minutes for $85.
People get the government they deserve, so be happy the people in Indiana are smarter than those here in California.
That 40-minute flight is not really 40 minutes once you take everything into account, correct? What I mean is that you cannot go to LAX and hop right on that place. You have to get there early, go through security, you have wait for a while, and then risk a late or canceled flight, right? So, for those of us on the East Coast, how long will that high speed rail take? Probably a wash when you take all into account. Plus, some people do not like to fly, so I would see this high speed rail as a blessing for those folks.
In the Peoples Republic of California, invoices for coin sales under $1500 are subject to sales tax and above $1500 are not.
I think that's surprising because that's a lot of tax dollars the State is missing out on.
Gov. Brown and the Socialist legislature passed a bill yesterday raising the minimum wage to $15 an hour by 2021.
They are also building a high speed rail from LA to San Francisco at a cost of $20 billion dollars that no one will use because you can fly there in 40 minutes for $85.
People get the government they deserve, so be happy the people in Indiana are smarter than those here in California.
That 40-minute flight is not really 40 minutes once you take everything into account, correct? What I mean is that you cannot go to LAX and hop right on that place. You have to get there early, go through security, you have wait for a while, and then risk a late or canceled flight, right? So, for those of us on the East Coast, how long will that high speed rail take? Probably a wash when you take all into account. Plus, some people do not like to fly, so I would see this high speed rail as a blessing for those folks.
Don't worry about the extra time outside of the 40 minute flight.
According to the LA Times, The larger questions remain about the project’s ability to deliver a system that would connect Los Angeles and San Francisco in 2 hours and 40 minutes, which is required under the 2008 bond act that voters approved.
And the "high speed" train ride has a $43.5 billion funding shortfall.
With 28 million people in the state, that's $1,535 for every man, woman, child and baby in the state.
Everyone could buy a PCGS MS Double Eagle instead of paying for a train they will never ride.
to the fall/rebirth. Cheers, RickO
What people don't understand, or don't want to understand is that those who are successful with new ideas or who have capital to invest in good ideas are the people who create the jobs. Jobs creation boosts tax revenues, which supports government services, and encourages people to do positive things for themselves.
...all of which has NOTHING to do with cherry picking which luxury items should, or shouldn't, be taxed. (Unless you are suggesting that this is a pro-coin dealer jobs creation program?)
Now, I understand bullion as an investment vehicle being tax exempt. One chuck of gold is the same as any other, (provided the "chunks" have been coined, or otherwise authenticated...bars, etc.). Bullion IS an alternative form of investment, first and foremost.
(Kind of like one share of Apple stock is pretty much like another. You don't buy it to look at it, enjoy it, or share it with fellow investors....you buy it in hopes that it increases in value).
But why would a Lincoln cent, or Washington Quarter, or $20 classic gold coin, graded for quality, priced based on mintmarks, quality, color, rarity, etc., and bought (most often) for enjoyment and hobby purposes be tax exempt? Couldn't my example of a Cabbage Patch doll be the same? Diamond necklaces? Classic car auto parts? Sure, they all may increase in value. But at heart, they are consumer goods, and not investments.
And for my pet peeve, why exempt ONLY purchases over $1000, (or similar limit)? If gold bullion, (or Lincoln cents), are exempt, they should be exempt no matter if you buy $10,000 worth, or $100 worth in $1 installments.
But, more to my point, I don't agree with the stance that luxury items, be they coins or anything else, should be tax exempt. Claiming some advantage to the economy created by the privileged rich, (or upper middle class), in this context is just silly. Yeah, I would benefit more than your average citizen....but I like to think I'm not selfish enough to think I "deserve" it more than people who buy big-screen TV's, lawn fertilizer, or roofing shingles.
In short....it's a tax loophole created for the people who really don't require tax loopholes....just like most loopholes. Coin collectors, dealers, and industry trade groups, have the opportunity to catch the ear of congressmen, while those living paycheck-to-paycheck just have to hope someone notices them.
(Being that this post deals with tax exemption of coin purchases, I will contend it is coin related, and not a political statement. Well, mostly).
No one is stopping your from giving a percentage of your coin purchases to your state government if you want to do that. The point is the rest of us don't want to do that, and you have no right to demand that everyone else do it. You have a vote, and you are entitled to your opinion, but that does not give you the right to make other people pay for your opinions.
Taxation.... the eternal irritant..... was instrumental in the birth of America... will likely contribute
to the fall/rebirth. Cheers, RickO
Yes and hopefully we are waking up in 2016.
Thank YOU to Silvertowne for doing instead of complaining
No one is stopping your from giving a percentage of your coin purchases to your state government if you want to do that. The point is the rest of us don't want to do that, and you have no right to demand that everyone else do it. You have a vote, and you are entitled to your opinion, but that does not give you the right to make other people pay for your opinions.
Think we have a basic difference in Point of View.
I would turn it around and say we as a hobby, (or any hobby or special interest), have no right to receive special treatment.
But we'll leave it at that. I understand the desire to cut taxes, and won't argue differently. HOW we go about cutting taxes is where we differ.
Taxation.... the eternal irritant..... was instrumental in the birth of America... will likely contribute
to the fall/rebirth. Cheers, RickO
Very good point!
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We'd like to thank all of the dealers and individuals who supported the passage of HB1046. This was a great move forward for Indiana, establishing a level playing field for local Coin and Bullion businesses and investors. This puts Indiana at par with 33 other states in the union who also provide a Sales Tax Exemption on precious metal bullion and legal tender. We expect to see many local customers re-frequenting their local coin shops to make their investment purchases, rather than sending those investment dollars to businesses in other states, due to the prior sales tax. We're confident this will have a ripple effect, providing more local jobs and increased revenues on taxable item sales in Indiana. We are also hopeful that this move will create a favorable environment to attract regional and national coin shows back to Indiana.
We'd like to thank Kathy McFadden and the team at ICTA for their tremendous support in getting this bill heard and passed. They provided critical data regarding the passage of similar bills in other states across the country, and were very instrumental in providing talking points for legislators and representatives. If you live in a state that still does not provide a sales tax exemption for precious metal bullion and legal tender investment purchases, you'll want to reach out to and support the team at ICTA.
We look forward to working together with many other coin dealers, hobbyists and investors to further support the continual growth of the bullion and coin business.
Best regards and happy investing!
Jamie Meadows
Vice President - General Manager
SilverTowne, L.P.
We'd like to thank all of the dealers and individuals who supported the passage of HB1046. This was a great move forward for Indiana, establishing a level playing field for local Coin and Bullion businesses and investors. This puts Indiana at par with 33 other states in the union who also provide a Sales Tax Exemption on precious metal bullion and legal tender. We expect to see many local customers re-frequenting their local coin shops to make their investment purchases, rather than sending those investment dollars to businesses in other states, due to the prior sales tax. We're confident this will have a ripple effect, providing more local jobs and increased revenues on taxable item sales in Indiana. We are also hopeful that this move will create a favorable environment to attract regional and national coin shows back to Indiana.
We'd like to thank Kathy McFadden and the team at ICTA for their tremendous support in getting this bill heard and passed. They provided critical data regarding the passage of similar bills in other states across the country, and were very instrumental in providing talking points for legislators and representatives. If you live in a state that still does not provide a sales tax exemption for precious metal bullion and legal tender investment purchases, you'll want to reach out to and support the team at ICTA.
We look forward to working together with many other coin dealers, hobbyists and investors to further support the continual growth of the bullion and coin business.
Thanks for your interest, efforts and the post.
We're assuming that all US legal tender coinage is free from sales tax. Is this your understanding as well?
...and welcome aboard.
The Bill covers all precious metals bullion that meets IRA standards (.999 silver, .9999 gold, .995 Platinum) and all legal tender, although it does not have to be deposited into an IRA to qualify for the Sales Tax Exemption. "Legal tender" is non-restricted, so this would include any coin or currency that is legal tender from any country (US or World).
Oh, great!
This is wonderful news.
It will be nice seeing more Indiana coin shows as well.
Thanks.
Thank YOU to Silvertowne for doing instead of complaining
+1
.
In the Peoples Republic of California, invoices for coin sales under $1500 are subject to sales tax and above $1500 are not.
I think that's surprising because that's a lot of tax dollars the State is missing out on.
Gov. Brown and the Socialist legislature passed a bill yesterday raising the minimum wage to $15 an hour by 2021.
They are also building a high speed rail from LA to San Francisco at a cost of $20 billion dollars that no one will use because you can fly there in 40 minutes for $85.
People get the government they deserve, so be happy the people in Indiana are smarter than those here in California.
That 40-minute flight is not really 40 minutes once you take everything into account, correct? What I mean is that you cannot go to LAX and hop right on that place. You have to get there early, go through security, you have wait for a while, and then risk a late or canceled flight, right? So, for those of us on the East Coast, how long will that high speed rail take? Probably a wash when you take all into account. Plus, some people do not like to fly, so I would see this high speed rail as a blessing for those folks.
LOL 20 Billion ??? ...you mean $200 Billion for LA - SFO.. Trump will pull Fed funding of this money elephant in 2017
“I want you to remember that no * ever won a war by dying for his country. He won it by making the other poor dumb * die for his country”
Fellow collectors and investors,
We'd like to thank all of the dealers and individuals who supported the passage of HB1046. This was a great move forward for Indiana, establishing a level playing field for local Coin and Bullion businesses and investors. This puts Indiana at par with 33 other states in the union who also provide a Sales Tax Exemption on precious metal bullion and legal tender. We expect to see many local customers re-frequenting their local coin shops to make their investment purchases, rather than sending those investment dollars to businesses in other states, due to the prior sales tax. We're confident this will have a ripple effect, providing more local jobs and increased revenues on taxable item sales in Indiana. We are also hopeful that this move will create a favorable environment to attract regional and national coin shows back to Indiana.
We'd like to thank Kathy McFadden and the team at ICTA for their tremendous support in getting this bill heard and passed. They provided critical data regarding the passage of similar bills in other states across the country, and were very instrumental in providing talking points for legislators and representatives. If you live in a state that still does not provide a sales tax exemption for precious metal bullion and legal tender investment purchases, you'll want to reach out to and support the team at ICTA.
We look forward to working together with many other coin dealers, hobbyists and investors to further support the continual growth of the bullion and coin business.
Best regards and happy investing!
Jamie Meadows
Vice President - General Manager
SilverTowne, L.P.
Thank you Silvertown. I have almost purchased from your online store until I saw that 'extra'. You can count me as a future customer now.
“I want you to remember that no * ever won a war by dying for his country. He won it by making the other poor dumb * die for his country”