Has a change in collection of sales tax on auction sales shipped to your state influenced your bids?
DMWJR
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I just got a notice from Heritage that they will be required to collect sales tax to purchases shipped to my state. This in new territory for me in the coin arena. I'm not sure how it will affect what I do. Will I make a point to travel for big auction purchase, lower my bids?? I don't know what to think about it just yet. I know many of you have already wrestled with this, but I didn't think it was coming to my state just yet.
Doug
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My state doesn't charge sales tax on coins. Yet.
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I wouldn’t give it a second thought. I pay taxes on gas, groceries, cars, etc. No biggie if I have to pay taxes on coins that I buy from Heritage. I usually buy privately anyway. The price is the price. I’ll go nuts if I over analyze everything.
It has not changed anything for me. Being in TX, I have been paying the sales tax with Heritage for a while already.
May bring lower prices to the non taxed bidders.
I have noticed many more of my eBay purchases charging sales tax.
Yup, absolutely !!!!
I believe sales tax charges will hurt smaller dealers in taxing states due to the already wafer thin profit margins-especially bullion and related pieces. Customers will go elsewhere to shop as in non taxing states. Sales taxes really add up for a serious collector.
If my state charges sales tax, the formula is simple.
I am willing to pay X as the value of the coin to me. X is the delivered price which includes shipping, taxes, and any other fees. Taxes can go up, but X stays the same. I bid X minus all the add-ons.
When will people figure out that we already pay too much in taxes to support a bloated government? I'd wager that most people don't even know what they are sending to the tax men each paycheck as the $$ is taken out for your convenience! If people had to write that check and send it in each period, I think there is a good chance there would be a revolt and collections would plummet.
“In matters of style, swim with the current; in matters of principle, stand like a rock." - Thomas Jefferson
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Agreed. A possible solution to one of your points would be no withholding BS, with the entire tax amount due to be paid in one check the first Monday in November, with Election Day the first Tuesday. That would remind people to vote, also.
Not at all. South Carolina exempts coins and currency from sales tax.
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The problem is that when you are bidding in an auction you'll be at a competitive disadvantage with those bidding from states with lower or no sales taxes.
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Agree fully, @PerryHall. A six to ten percent takes the money right off the top of any possible resale profit of mine for the governor with all the risk to me, and absolutely none to the governor. Stacked deck to me. Pass!
Pardon me for not being educated in the multi state tax transactions, but if I am looking to buy a $100,000 coin at the ANA in Philly, would I pay tax if I flew to the auction and bought it there and didn't pay sales tax on it, assuming the cost of the trip was less than the 7,000 I would pay in sales tax? Or would there be another way I'm going to have to pay the tax?
If you pick it up AND PAY at the auction venue in Philly, there should be no tax due as Pennsylvania has no sales tax on coins. But if you lived, for example, in NJ, you would technically owe Use Tax of 6.675% payable on your 2018 Resident Income Tax return.
Now, most people just ignore the Use Tax, but if the state ever happened to audit HA, and your name came up, you would be in for a whole lotta hurt. Just sayin.
Oh, and to answer your question, NO it has not changed my bidding because I found a way around the sales tax (for the moment, at least).
I agree, understand, and can live with that as I am a collector, not a dealer.
If I were a dealer purchasing for resale, I would be steamed if I had to compete with low sales tax states.
“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!
A dealer gets a wholesaler number and doesn’t pay sales tax either, so they aren’t really relieving to the discussion.
I’m familiar with use tax too. Not something my state usually fools with except collecting from businesses.
I wonder what a State’s ability to audit an out of state company is that doesn’t have a brick and mortar or conduct any auctions in my state. Apparently they convinced them to withhold the sales tax for them!
So if the state reads this thread you might be in a world of hurt too, LOL
Ok, I'm up to speed on the hoopla:
http://www.scotusblog.com/case-files/cases/south-dakota-v-wayfair-inc/
And for each state (although I didn't look up the individual states) here's a starting point:
https://thecoinologist.com/sales-tax-state-by-state-breakdown/