@RichieURich said:
Here is my suggested solution to this issue:
The "Marketplace Fairness Act" seeks to have every vendor in interstate commerce charge sales tax based on the buyer's place of residence, could well have been entitled "The Law Requiring You to Report Sales and Pay Tax to Over 7,500 Municipalities, Any of Which Can Audit You If They Don't Like Your Numbers". Here is my simple solution: If I go into a store and buy something, no one in the store asks me where I reside, the store just charges the sales tax where the store is located. Why can't we do that for online sales, too? This would accomplish the task, without requiring a huge amount of additional administrative effort!
If eBay ends up collecting and remitting the tax, why would any state go to the effort to audit you?
There are a few sellers, including me, who sell through our own websites rather than eBay. I don't know about everyone else, but I do this for a variety of reasons including avoiding eBay's sizeable fees and their rules, many of which are IMO unfair to sellers. (For example, person buys coin, disputes credit card charge, credit card company charges you back but you don't get the coin back.)
Imagine having to file up to 7,500 separate tax returns with different rates. Just keeping up with the due dates for those tax returns is a huge task, especially for a small business.
An authorized PCGS dealer, and a contributor to the Red Book.
@RichieURich said:
Here is my suggested solution to this issue:
The "Marketplace Fairness Act" seeks to have every vendor in interstate commerce charge sales tax based on the buyer's place of residence, could well have been entitled "The Law Requiring You to Report Sales and Pay Tax to Over 7,500 Municipalities, Any of Which Can Audit You If They Don't Like Your Numbers". Here is my simple solution: If I go into a store and buy something, no one in the store asks me where I reside, the store just charges the sales tax where the store is located. Why can't we do that for online sales, too? This would accomplish the task, without requiring a huge amount of additional administrative effort!
If eBay ends up collecting and remitting the tax, why would any state go to the effort to audit you?
There are a few sellers, including me, who sell through our own websites rather than eBay. I don't know about everyone else, but I do this for a variety of reasons including avoiding eBay's sizeable fees and their rules, many of which are IMO unfair to sellers. (For example, person buys coin, disputes credit card charge, credit card company charges you back but you don't get the coin back.)
Imagine having to file up to 7,500 separate tax returns with different rates. Just keeping up with the due dates for those tax returns is a huge task, especially for a small business.
The thread was largely about ST on eBay sales.
Otherwise you'd be no different than other places that have to collect ST. Sounds like an opportunity for some enterprising soul to come up with an affordable program to help handle this. Alternatively one could direct one's website through a proxy service that would take care of it for you.
Coin dealers should feel fortunate that many states exempt coins from ST.
If the sales tax has to be collected for every state that has one, it's going to make life hell for the small eBay sellers.
Retired dealer and avid collector of U.S. type coins, 19th century presidential campaign medalets and selected medals. In recent years I have been working on a set of British coins - at least one coin from each king or queen who issued pieces that are collectible. I am also collecting at least one coin for each Roman emperor from Julius Caesar to ... ?
@BillJones said:
If the sales tax has to be collected for every state that has one, it's going to make life hell for the small eBay sellers.
Bill, you have to add in the local jurisdictions also, quite a few states have different rates depending on where in the state the sale is made.
You are right. The sales tax in Florida varies by county. I used have to keep a spread sheet to record the sales for each country to keep it straignt because of the different tax rates when I went to the local shows.
Retired dealer and avid collector of U.S. type coins, 19th century presidential campaign medalets and selected medals. In recent years I have been working on a set of British coins - at least one coin from each king or queen who issued pieces that are collectible. I am also collecting at least one coin for each Roman emperor from Julius Caesar to ... ?
@BillJones said:
If the sales tax has to be collected for every state that has one, it's going to make life hell for the small eBay sellers.
Bill, you have to add in the local jurisdictions also, quite a few states have different rates depending on where in the state the sale is made.
You are right. The sales tax in Florida varies by county. I used have to keep a spread sheet to record the sales for each country to keep it straignt because of the different tax rates when I went to the local shows.
Oregon has no sales tax except a small county and a few smaller municipalities, for example. If you cross over into Washington and present Oregon ID, you don't have to pay gas or recreational product taxes. There are a few select items that you do have to pay tax on, but I've never bought anything but gas and tide charts and recreational items.
@ms70 said:
As long as the coin is taxed on face value, no biggie.
Seriously, you don't pay tax when you BUY stocks or any other investments, so why coins? It's exceedingly unfair.
So suddenly coins are an investment?
One could argue that they are ordinary merchandise just like beanie babies. Yes they are money, but many of the collectible ones aren't used for money in ordinary commerce.
All sales are "local pick up" No sales tax on precious metals in Texas.
If you want the coin shipped, then my friendly collie, who has his own office in my house, has his own paypal site, and will be happy to ship your item THAT YOU OWN to you. He only charges shipping costs, nothing else, nothing to tax.
@ms70 said:
As long as the coin is taxed on face value, no biggie.
Seriously, you don't pay tax when you BUY stocks or any other investments, so why coins? It's exceedingly unfair.
So suddenly coins are an investment?
One could argue that they are ordinary merchandise just like beanie babies. Yes they are money, but many of the collectible ones aren't used for money in ordinary commerce.
Clearly the line is blurred. A mid grade common Saint could be considered an investment vehicle. Less easy to defend is a 1794 Half Dime.
@Banknotes122 said:
Every online purchase from any site will be taxed sooner or later. The government needs the extra money to fund outrageous spending.
They are currently taxed, problem is buyers are not reporting themselves and paying as required. Not only does government need the money they are resorting to having third parties collect it for them (just as retail outlets do). Can you blame them?
The internet was never exempt from state sales tax. It was only easy to avoid paying as required.
No Way Out: Stimulus and Money Printing Are the Only Path Left
Amazon has been taxing my state for years, so what, it is good for the state and I buy alot from Amazon. Ebay? My state does not charge sales tax on coins, bullion so no affect on me for collecting. What is wrong with states getting their tax? We need to cover costs for state and local gubmint. Silly me.
@RichieURich said:
Here is my suggested solution to this issue:
The "Marketplace Fairness Act" seeks to have every vendor in interstate commerce charge sales tax based on the buyer's place of residence, could well have been entitled "The Law Requiring You to Report Sales and Pay Tax to Over 7,500 Municipalities, Any of Which Can Audit You If They Don't Like Your Numbers". Here is my simple solution: If I go into a store and buy something, no one in the store asks me where I reside, the store just charges the sales tax where the store is located. Why can't we do that for online sales, too? This would accomplish the task, without requiring a huge amount of additional administrative effort!
I asked Senator Enzi, one of the bill's sponsor's, this exact question. He responded incredulously "That would change our whole sales tax system!". He didn't seem to understand my arguments that the proposed bill would also "change our whole sales tax system". We discussed a number of related topics such as the administrative overhead, the impact to businesses near the proposed $5 million compliance threshold, who has regulatory oversight, etc. and he just pooh-poohed my arguments without actually really responding on the merits.
I came away from the conversation less than impressed with Enzi. He reminded me of the old Grandfather that everyone is very nice to because he is really old and because he can't really follow what is going on.
@spacehayduke said:
Amazon has been taxing my state for years, so what, it is good for the state and I buy alot from Amazon. Ebay? My state does not charge sales tax on coins, bullion so no affect on me for collecting. What is wrong with states getting their tax? We need to cover costs for state and local gubmint. Silly me.
Best, SH
Why in the world should California collect money on a sale that takes place in Kentucky?!?
Comments
There are a few sellers, including me, who sell through our own websites rather than eBay. I don't know about everyone else, but I do this for a variety of reasons including avoiding eBay's sizeable fees and their rules, many of which are IMO unfair to sellers. (For example, person buys coin, disputes credit card charge, credit card company charges you back but you don't get the coin back.)
Imagine having to file up to 7,500 separate tax returns with different rates. Just keeping up with the due dates for those tax returns is a huge task, especially for a small business.
An authorized PCGS dealer, and a contributor to the Red Book.
The thread was largely about ST on eBay sales.
Otherwise you'd be no different than other places that have to collect ST. Sounds like an opportunity for some enterprising soul to come up with an affordable program to help handle this. Alternatively one could direct one's website through a proxy service that would take care of it for you.
Coin dealers should feel fortunate that many states exempt coins from ST.
If the sales tax has to be collected for every state that has one, it's going to make life hell for the small eBay sellers.
Bill, you have to add in the local jurisdictions also, quite a few states have different rates depending on where in the state the sale is made.
An authorized PCGS dealer, and a contributor to the Red Book.
As long as the coin is taxed on face value, no biggie.
Seriously, you don't pay tax when you BUY stocks or any other investments, so why coins? It's exceedingly unfair.
Great transactions with oih82w8, JasonGaming, Moose1913.
You are right. The sales tax in Florida varies by county. I used have to keep a spread sheet to record the sales for each country to keep it straignt because of the different tax rates when I went to the local shows.
Oregon has no sales tax except a small county and a few smaller municipalities, for example. If you cross over into Washington and present Oregon ID, you don't have to pay gas or recreational product taxes. There are a few select items that you do have to pay tax on, but I've never bought anything but gas and tide charts and recreational items.
So suddenly coins are an investment?
One could argue that they are ordinary merchandise just like beanie babies. Yes they are money, but many of the collectible ones aren't used for money in ordinary commerce.
Easy Solution:
All sales are "local pick up" No sales tax on precious metals in Texas.
If you want the coin shipped, then my friendly collie, who has his own office in my house, has his own paypal site, and will be happy to ship your item THAT YOU OWN to you. He only charges shipping costs, nothing else, nothing to tax.
Clearly the line is blurred. A mid grade common Saint could be considered an investment vehicle. Less easy to defend is a 1794 Half Dime.
They are currently taxed, problem is buyers are not reporting themselves and paying as required. Not only does government need the money they are resorting to having third parties collect it for them (just as retail outlets do). Can you blame them?
The internet was never exempt from state sales tax. It was only easy to avoid paying as required.
No Way Out: Stimulus and Money Printing Are the Only Path Left
Amazon has been taxing my state for years, so what, it is good for the state and I buy alot from Amazon. Ebay? My state does not charge sales tax on coins, bullion so no affect on me for collecting. What is wrong with states getting their tax? We need to cover costs for state and local gubmint. Silly me.
Best, SH
I asked Senator Enzi, one of the bill's sponsor's, this exact question. He responded incredulously "That would change our whole sales tax system!". He didn't seem to understand my arguments that the proposed bill would also "change our whole sales tax system". We discussed a number of related topics such as the administrative overhead, the impact to businesses near the proposed $5 million compliance threshold, who has regulatory oversight, etc. and he just pooh-poohed my arguments without actually really responding on the merits.
I came away from the conversation less than impressed with Enzi. He reminded me of the old Grandfather that everyone is very nice to because he is really old and because he can't really follow what is going on.
Why in the world should California collect money on a sale that takes place in Kentucky?!?