Heritage to charge sales tax in NJ
pruebas
Posts: 4,582 ✭✭✭✭✭
I received this mail from Heritage last night:
Effective immediately, Heritage Auctions will be required by New Jersey state law to charge sales tax on any items delivered to New Jersey addresses. Exemptions include dealers with valid New Jersey sales tax numbers who are purchasing for resale and who furnish us with a properly completed New Jersey resale certificate.
Anyone know what changed (other than we got a new Governor)?
Does Heritage now have an office in Newark? 
1
Comments
NJ sales tax was reduced from 7% to 6.875% as of Jan 1. However, when I bought my $1 coffee at Wawa this morning I was charged $1.07. While this 1/8 cent is insignificant, multiply this times the statewide transactions and its quick to understand that this is “free” money to someone.
Since we eliminated the penny here in Canada, the vendors actually round down the total.
Your coffee costing $1.07, would actually cost you $1.05.
But don't consider us fortunate.
Our Canadian government and their prestigious bunch of tax collectors (the CRA), aka "where you're guilty until proven innocent", more than make up for this 'lost' revenue.
"“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)
"I only golf on days that end in 'Y'" (DE59)
@ambro51, NJ sales tax was reduced to 6.625% on 1 Jan 2018. It was reduced to 6.875% on 1 Jan 2017.
Prices are always rounded up!
But what does the rate have to do with the fact that Heritage is now charging it on coin purchases?
$1300$ more for your 20K purchase
NY-NJ have been trying to close this loophole for years, and NJ publication ANJ-14 states that a NY company that does not voluntarily collect the tax from the NJ buyer is subject to their customer's anger when NJ bills the evading customer for taxes and interest, AND also assesses a penalty (20 year statute of limitations) on the NY company. I think this works in both directions.
We are quickly moving toward universal enforcement of sales tax collection based on your residence or point of purchase.
Commems and Early Type
Time to get a PO Box in a neighboring state, or have a friend or dealer bid on your behalf.
AND that tax is on top of the Heritage buyer's fee too! Yippie!
Great transactions with oih82w8, JasonGaming, Moose1913.
@CommemDude Not if Amazon has something to say about it...and they are to 600 lb gorilla in the room with billions of dollars to use to lobby.
I also received a notice from Heritage last week....but forthe sh**hole of Connecticut. It looks like it doesn't apply to coins from what the email stated. I don't regularly buy from heritage, so it doesn't affect me much.
Need to move to a state that exempts coins and bullion from sales tax.
As if there needed to be another reason not to live in New Jersey
Latin American Collection
We need the return of the Eighth Cent!
Sales tax is charged by brackets:
STATE OF NEW JERSEY
THE DEPARTMENT OF THE TREASURY
DIVISION OF TAXATION
SALES TAX COLLECTION SCHEDULE
RATE 6.875%EFFECTIVE JANUARY 1, 2017
Amount Tax to be
of Sale Collected
Amount Tax to be
of Sale Collected
$0.01 to $0.07 None
0.08 to 0.21 . . . $0.01
0.22 to 0.36 . . . .02
0.37 to 0.50 . . . .03
0.51 to 0.65 . . . .04
0.66 to 0.79 . . . .05
0.80 to 0.94 . . . .06
0.95 to 1.09 . . . .07
1.10 to 1.23 . . . .08
1.24 to 1.38 . . . .09
1.39 to 1.52 . . . .10
1.53 to 1.67 . . . .11
1.68 to 1.81 . . . .12
1.82 to 1.96 . . . .13
1.97 to 2.10 . . . .14
2.11 to 2.25 . . . .15
2.26 to 2.39 . . . .16
2.40 to 2.54 . . . .17
2.55 to 2.69 . . . .18
2.70 to 2.83 . . . .19
2.84 to 2.98 . . . .20
2.99 to 3.12 . . . .21
3.13 to 3.27 . . . .22
3.28 to 3.41 . . . .23
3.42 to 3.56 . . . .24
3.57 to 3.70 . . . .25
3.71 to 3.85 . . . .26
3.86 to 4.00 . . . .27
4.01 to 4.14 . . . .28
4.15 to 4.29 . . . .29
4.30 to 4.43 . . . .30
4.44 to 4.58 . . . .31
4.59 to 4.72 . . . .32
4.73 to 4.87 . . . .33
4.88 to 5.01 . . . .34
5.02 to 5.16 . . . .35
5.17 to 5.30 . . . .36
5.31 to 5.45 . . . .37
5.46 to 5.60 . . . .38
5.61 to 5.74 . . . .39
5.75 to 5.89 . . . .40
5.90 to 6.03 . . . .41
dollar of the amount of sale, plus the tax on each part of a dollar in
excess of a full dollar in accordance with the above formula.
ST-75 (1-17)
$6.04 to $6.18 . . . $0.42
6.19 to 6.32 . . . .43
6.33 to 6.47 . . . .44
6.48 to 6.61 . . . .45
6.62 to 6.76 . . . .46
6.77 to 6.90 . . . .47
6.91 to 7.05 . . . .48
7.06 to 7.20 . . . .49
7.21 to 7.34 . . . .50
7.35 to 7.49 . . . .51
7.50 to 7.63 . . . .52
7.64 to 7.78 . . . .53
7.79 to 7.92 . . . .54
7.93 to 8.07 . . . .55
8.08 to 8.21 . . . .56
8.22 to 8.36 . . . .57
8.37 to 8.50 . . . .58
8.51 to 8.65 . . . .59
8.66 to 8.80 . . . .60
8.81 to 8.94 . . . .61
8.95 to 9.09 . . . .62
9.10 to 9.23 . . . .63
9.24 to 9.38 . . . .64
9.39 to 9.52 . . . .65
9.53 to 9.67 . . . .66
9.68 to 9.81 . . . .67
9.82 to 9.96 . . . .68
9.97 to 10.00 . . . .69
Over $10 . . . . . . .69*
Over $20 . . . . . . 1.38*
Over $30 . . . . . . 2.06*
Over $40 . . . . . . 2.75*
Over $50 . . . . . . 3.44*
Over $60 . . . . . . 4.13*
Over $70 . . . . . . 4.81*
Over $80 . . . . . . 5.50*
Over $90 . . . . . . 6.19*
Over $100 . . . . . . 6.88*
Over $200 . . . . . . 13.75*
Over $300 . . . . . . 20.63*
Over $400 . . . . . . 27.50*
Over $500 . . . . . . 34.38*
Glad I have no desire to live in NJ - a high SALT state.
You get what you elect.
“In matters of style, swim with the current; in matters of principle, stand like a rock." - Thomas Jefferson
My digital cameo album 1950-64 Cameos - take a look!
As is typical for this board, there’s been a lot of hot air and some insults, but no useful information posted.
Nobody has any insight as to why, suddenly, HA has decided it now has to collect sales tax from NJ (and apparently CT) residents? Does it now have a physical presence in those states? Is there some new law?
Anybody in any other state get this notice?
How bout you call and ask them. Their customer service is pretty good.
Ah, Texas, no discouraging words here, tax-wise anyway.
Ah, Texas, no discouraging words here, tax-wise anyway.
Sorry, wrong, Texas residents have to pay sales tax on any purchases from Heritage (unless, of course, you have a resale certificate).
Member ANA, SPMC, SCNA, FUN, CONECA
for $250 you can open an LLC which after the yearly $50 fee will allow you to not have to pay tax and right off losses more easily...
I am certainly paying sales tax with Heritage from here in Texas. Personally, I am fine with sales tax being collected online. I don't particularly like paying sales taxes, but it seems fair to pay it online no matter what state I am in. As far as the OP question, I do not know why there is a change now.
Actually, Amazon is NOT completely opposed to an internet sales tax. They have locus in so many states now that they feel they are at the disadvantage.
Well except for the 8.25% sales tax and the high property taxes. If you live in a small house and don't buy anything it is great!
K
Pick em up though and shipping charge savings will offset the tax.
(and fund your kids first year at Harvard!)
I live in New Hampshire. What is this "Sales Tax"?
We've been paying sales tax to Heritage in California for years. Welcome to the club.
- Bob -
MPL's - Lincolns of Color
Central Valley Roosevelts
25 % of auction coin price in fees.....LOL will collectors still buy pricey coins in NJ ?
Hey at least it’s not Chicagoland....10.25% sales tax (tied for #1)...higher property taxes (IL is #2)....and a 4.95% state income tax (recently increased with more increases in the works).
Well, you beat me to it. I was going to post that, in the Seattle area, we have NJ beat as well..... 10% sales tax, high property taxes, AND the 2nd higher gas taxes in the US (just, at this time, no state income tax....the politicians are trying to get that changed though....for about the 11th attempt).
I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment
If morons don't include the BP in their bids, they deserve to over pay. Lowering the BP puts more money in the consignors pocket, it doesn't save the buyer a plug nickel.
In Texas, As of October 1, the sales tax levied on purchases of gold, silver and platinum bullion and numismatic coins in Texas is now eliminated. It is the first time that a state has expanded an existing sales tax exemption for gold and silver.
When you live in a welfare state like Connecticut, the government takes money from people with jobs and give it to people who don't find the need or desire to work.
There's a reason that states like CT, NJ, IL are going bankrupt while they tax the air you breathe...and they all have one thing in common....
Sorry, wrong, Texas residents DO NOT pay sales tax on purchase from Heritage, because there is no sales tax on collectable coins and bullion, as noted above by mustangmanbob. But I recall this being for a couple years now, not as of October 1 as I haven't been charged sales tax from Ha for that long.
Best, SH
Sales tax... hmmmmm... strange isn't it? We get charged for spending our money....and the money goes to an entity that did not produce the product, provide the venue or hire the service. Wish I had a source of income like that....
Cheers, RickO
I'm not one to hit the 'disagree' button, but I couldn't disagree with you more.
What is 'fair' about paying sales tax to a state that you don't live in ?
Blue states bankrupt.....NJ has $200 Billion in unfunded pensions ..IL has a $150 Billon unfunded pensions
Budget deficits.... sad if a recession hits
Seattle ?? ...you left out the new 1.75 cents per ounce soda tax
I was in NJ, once.
I received the same notice from Heritage as Shady Dave. Doesn't change anything though as CT doesn't have such a sales tax on rare coins.
"Sales of rare or antique coins whose sales price is based on rarity, demand, condition and mintage are not subject to Connecticut sales and use taxes under Conn. Gen. Stat. § 12-412(45)."
This rare or antique coin exemption applies to coins which are or were the legal tender of any government of the world, whatever the age of the coins, and whose price is based upon rarity, demand, condition and mintage, and whose price does not fluctuate daily or at regular intervals based on fluctuations in the price of precious metals. This rare or antique coin exemption applies irrespective of the sales price of the rare or antique coins.
Proof sets sold by the U.S. Mint, including gold, silver or platinum American Eagle Proof coins, fit within this rare or antique coin exemption.
However, this rare or antique coin exemption does not apply to sales of medals, tokens or paper money, and also does not apply to sales of gold or silver bullion, or sales of gold or silver coins, traded according to their value as precious metal. See FAQ 708 for information on whether sales of gold or silver bullion, or sales of gold or silver coins, traded according to their value as precious metal, are subject to Connecticut sales and use taxes._
Bullion is a different story. Though from what I read, things like $20 Saints or other USMint gold coins would be considered "rare coins," which is similar to the interpretation of the 1934 Gold Reserve Act. Though it would seem that 1 oz unc AGE's would be bullion and the proofs AGE are not. I'd buy the proofs....plus they are much scarcer and far prettier than the BU's....and premiums are near all time lows....currently a measly +$25 over spot from Heritage. That more than covers any sales tax.
Ahhh yes, the crossroads of the American Revolution.........in this case not quite living up to that honored reputation.
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
Sorry, wrong, Texas residents DO NOT pay sales tax on purchase from Heritage,
Perhaps the coins are exempt but Heritage's other divisions - currency, etc. do have to charge sales tax to Texas residents so we'll split the difference - we're both part right and wrong.
Member ANA, SPMC, SCNA, FUN, CONECA
It's that thing you will have eventually unless you can stop the influx of Massachusetts residents who move north thinking they want more freedom but then keep voting for the same types of people they voted for in Mass.
Maybe you need a wall along your southern border....
CT has no sales tax on antiques or numismatics so I don't know why any company would be doing this. Anyone could register with a state as a dealer and come up with a generic name, etc..
I've not paid sales tax on coins won at HA either, for many years now. In any event, my post mainly was focused on the fact that TX has not as yet tried to reach across state lines, nor do we pay a state income tax or state inheritance tax.
@pruebas, I too would be interested to know why Heritage is now collecting sales tax for New Jersey addresses. This move happened the day after the new governor took office, but that may just be a coincidence. I checked Stacks-Bowers and Great Collections, but their policies have not changed.
New York and New Jersey tax policies make Pennsylvania look all the more attractive. No sales tax on coins and bullion in the Keystone State.
https://www.pcgs.com/setregistry/gold/liberty-head-2-1-gold-major-sets/liberty-head-2-1-gold-basic-set-circulation-strikes-1840-1907-cac/alltimeset/268163
many years ago nj tax agents came to a garden state show and went through every ones paper work. they either fined or took Julian Leidmans inventory and really hassled people. scared the heck out of everyone for years.
I believe that the tax that Heritage is collecting on online sales to NJ residents may be "Use" tax not "Sales tax....my guess is that NJ is now getting stricter at collecting "Use" tax from corporations that do business in their state...one of my business suppliers has recently been forced to collect "Use" tax from us for purchases that we make but are sent directly to end user customers in CA and FL...
Technically I believe we are supposed to pay use tax in almost every state...but that would involve filing 50 different state tax returns...fortunately our accountant is conservative but lets this one go...
"Use Tax is owed by New Jersey residents and businesses that buy products out of state, online, or via the mail, and then bring the products to New Jersey or have them shipped here for their use. When you buy a taxable item or service in New Jersey, the seller collects New Jersey Sales Tax from you on the purchase. But if you buy the same item or service from a company located in another state, you may have to pay Use Tax to New Jersey, even if the out-of-state seller claims your purchase is tax free or collects sales tax for another jurisdiction.
Why Would You Owe Use Tax?
You owe Use Tax if you bought a taxable item or service outside of New Jersey and:
You didn’t pay sales tax of any kind, or
You paid sales tax to another jurisdiction at a rate lower than New Jersey’s.
What Is The Use Tax Rate?
The Use Tax rate is the same as our Sales Tax rate:
6.625% on purchases made in 2018
6.875% on purchases made in 2017"
And in the who cares department...as a NY resident I have personally cut my coin purchases from HA to zero...I'm not cheap but an extra 30% on top of bid plus their no/difficult return policy is too much for me for a coin that I am unable to personally inspect...the beneficiary of my current spending has been DWN and others...
@jonruns thanks for your intelligent response.
I believe that sales tax is paid by a seller on behalf of the end user, and use tax is paid by the end user when sales tax was not collected (or collected at a lower rate than the NJ rate).
Thus HA can not collect use tax because they are not the end user. I am. And I would pay use tax on my income tax return.
They can collect sales tax but this usually only is legally mandated when the merchant has a nexus in the state. Otherwise NJ would have no jurisdiction on HA.
I wonder if HA bought another firm?
I’ll try to get an answer direct from them this week.
@pruebas
Please let us know what you find out...I am not an accountant and you are probably right on the distinction between sales and use tax...my guess is that it wasn't an acquisition since the notice happened simultaneously in CT and NJ...but was a change in accounting policy...a publicly traded company is an easy target for the tax authorities of neighboring states...and just based upon population, wealth and the number of large dealers it wouldn't surprise me if NJ and CT represent close to 10% of Heritage's total revenues...
FadeToBlack
Don't think you have too much to worry about...NY's reciprocity deals always seem to only extend to CT and NJ...probably because of their greater economic influence there...