Sales Tax Announcement from Stacks

cwt · September 24, 2018 2:50PM

media.stacksbowers.com/SBG_eblast_images/2018/SBG_SalesTax_180924.html

Timbuk3 · September 24, 2018 3:08PM

Geez !!!

santinidollar · September 24, 2018 3:13PM

Swell. Louisiana’s sales tax is right at 10 percent.

DCW · September 24, 2018 3:23PM

So now we start the bidding at 20 percent hammer+ sales tax around 7 percent. A major handicap for those that are on Stacks tax list.
(Not all states are.)
It would be nice if Stacks offset this hit by lowering the buyers premium to 15%.
(I know, I know...just do the math and bid accordingly.)
Well that's no fun

291fifth · September 24, 2018 3:25PM

Expect realizations to decline as bidders adjust their bids downward to allow for the sales tax.

ACop · September 24, 2018 3:31PM

All else being equal, who you gonna choose as a consignor: the firm offering 112% of hammer plus collecting taxes to help pay for infrastructure, roads, and poverty programs or the one offering 110%?

DollarAfterDollar · September 24, 2018 4:20PM

Bad day to be a consignor.

Kove · September 24, 2018 5:04PM

There are only 17 states plus DC on the tax list. That leaves 33 states that don't have to worry about sales tax collection by S-B. Seems to give a lot of states a one increment bid advantage.

davewesen · September 24, 2018 5:16PM

@ACop said:
All else being equal, who you gonna choose as a consignor: the firm offering 112% of hammer plus collecting taxes to help pay for infrastructure, roads, and poverty programs or the one offering 110%?

the average little guy consignor does not get over hammer, but does get seller fees.

Gazes · September 24, 2018 5:18PM

@Kove said:
There are only 17 states plus DC on the tax list. That leaves 33 states that don't have to worry about sales tax collection by S-B. Seems to give a lot of states a one increment bid advantage.

for now.... my hunch is that list will get longer

CascadeChris · September 24, 2018 6:13PM

What's with Florida's coin tax law. So specific and with a low threshold. Strange.

notwilight · September 24, 2018 6:15PM

Not a problem in CA if you stay away from widgets.

BillJones · September 24, 2018 6:29PM

@CascadeChris said:
What's with Florida's coin tax law. So specific and with a low threshold. Strange.

It has to do with a coin dealers’ group who was able to get a bill through the legislature that eliminated the tax from all U.S. coins and reduced it to $500 on foreigh material. I think that the Tangible Assets group had a lot to do with this.,

jwitten · September 24, 2018 6:58PM

With the government and the auction company now taking bigger cuts, a heck of a lot less is left going to the seller. That sucks.

TwoSides2aCoin · September 24, 2018 7:00PM

No tax on coins, currency and bullion in my state (LB 867 ) ...but the property taxes , wheel taxes, federal excise taxes, usage taxes, other sales taxes and such, more than make up for that.
Lest I forget the juice.

BryceM · September 24, 2018 7:01PM

Sale to dealer is looking better & better. Glad I dont live in one of the penalty states. We don’t have much, but we have a balanced budget & reasonable rates.

OKbustchaser · September 24, 2018 7:02PM

What difference does it make?

I mean, those of you in states that tax coins have been paying your use taxes on your state return every April, right?

bigjpst · September 24, 2018 7:55PM

@OKbustchaser said:
What difference does it make?

I mean, those of you in states that tax coins have been paying your use taxes on your state return every April, right?

Wasnt sure whether to like this or LOL. But I see what you did there. Haha.

MrEureka · September 24, 2018 8:52PM

The current situation with sales tax on interstate commerce is untenable. Look for the Federal government to come to the rescue by replacing State sales taxes with a national sales tax or VAT. (This time, they actually will be "regulating commerce between the States". Imagine that!) If we don't find a way to get used goods and/or tangible investments excluded, the coin market will become a very different place. Collectors will tend to hold their coins much longer, dealers and auctions will do less business overall (but more in the shadows), dealers and auction firms will increase their margins to offset the fall in volume, and coins will get cheaper. On all points, just as it already is in Europe.

MrEureka · September 24, 2018 9:50PM

@jwitten said:
With the government and the auction company now taking bigger cuts, a heck of a lot less is left going to the seller. That sucks.

If it's any consolation, the sales taxes you pay on coins will come back to you in the form of government services. And the profits earned by the auction company will generate tax revenues for the government, which will also come back to you in the form of government services. Happy now?

CascadeChris · September 25, 2018 2:21AM

@BillJones said:

@CascadeChris said:
What's with Florida's coin tax law. So specific and with a low threshold. Strange.

It has to do with a coin dealers’ group who was able to get a bill through the legislature that eliminated the tax from all U.S. coins and reduced it to $500 on foreigh material. I think that the Tangible Assets group had a lot to do with this.,

Ah. Nice move then..

2ndCharter · September 25, 2018 6:23AM

for now.... my hunch is that list will get longer

Actually, the trend is in the opposite direction to your hunch. Thanks to the lobbying efforts of such groups as the ICTA, more states have been exempting coins, bullion, and currency from state sales taxes.

ricko · September 25, 2018 7:22AM

Flea markets, private sales venues and the coin forum sites may become even better places to do business....Cheers, RickO

jmlanzaf · September 25, 2018 7:32AM

@ricko said:
Flea markets, private sales venues and the coin forum sites may become even better places to do business....Cheers, RickO

Or a better place for the government to police.

ricko · September 25, 2018 7:35AM

@jmlanzaf ... You make a good point, though these markets have always existed and likely will continue in one form or another. Cheers, RickO

TJM965 · September 25, 2018 8:57AM

Be careful on Ebay when buying. There may be some out of state sellers that will now charge you tax when buying.

Gazes · September 25, 2018 11:30AM

@2ndCharter said:
for now.... my hunch is that list will get longer

Actually, the trend is in the opposite direction to your hunch. Thanks to the lobbying efforts of such groups as the ICTA, more states have been exempting coins, bullion, and currency from state sales taxes.

I hope so. However with the new Supreme Court ruling, some states may look at "easy" ways to increase revenue

tyler267 · September 25, 2018 5:50PM

@MrEureka said:

@jwitten said:
With the government and the auction company now taking bigger cuts, a heck of a lot less is left going to the seller. That sucks.

If it's any consolation, the sales taxes you pay on coins will come back to you in the form of government services. And the profits earned by the auction company will generate tax revenues for the government, which will also come back to you in the form of government services. Happy now?

Thanks for the comforting words, sure makes me feel better knowing that we will get extra Government services in exchange for the higher taxes we pay on our coins, I just can't wait to see what those services are and how efficiently the government provides them.

batumi · September 25, 2018 11:45PM

I am abroad probably 95% of the time. As we got rid of our home in a high-outrageous property tax state, it makes sense for us to completely pull up the taproot and move to a low tax state. It shouldn't be too difficult of a move-just a couple suitcases!

CommemDude · September 26, 2018 4:25AM

As I read the Stack's announcement, if the auction is held in one of the 5 no-tax states, you could attend yourself OR perhaps have someone proxy bid for you and pay with your funds. Then the bidder (or his surrogate) could pick up the coin at the end of the auction. Sounds complicated until you consider that a NYC resident who buys a 400K half disme at auction has a 35K tax to pay.

The five states that don't have a sales tax:
Alaska.
Delaware.
Montana.
New Hampshire.
Oregon.

Greeniejr · September 26, 2018 11:31AM

JOIN ICTA!!!! ictaonline.org ICTA is no longer just a dealers organization dealing with dealer issues. This Issue effects everyone, dealers, collectors, investors, hobbyists, everyone. Our industry has an amazing lobbyist who has been a lifelong coin collector and is a former congressman. He knows all the relevant people both in congress and in the staffs to get things to the right places. What we need is donations in order to help fund all of the efforts. Monitoring the actions of all the states, working to procure new and protect old exemptions and doing all the things ICTA does outside of the whole Wayfair mess costs money. We have an amazing staff working hard on behalf of everyone in our industry. Think about how much you will be potentially be paying in sales tax now and make a donation. Every cent counts. Go to the website and donate.

johnny9434 · September 26, 2018 11:34AM

connecticut is on that as well. ill move on with that one. what a bummer to

messydesk · September 26, 2018 12:04PM

So is SB guaranteeing that they will remit taxes collected to the respective states, even if they are below the threshold for needing to remit them?

BillJones · September 26, 2018 12:08PM

As I read the Stack's announcement, if the auction is held in one of the 5 no-tax states, you could attend yourself OR perhaps have someone proxy bid for you and pay with your funds. Then the bidder (or his surrogate) could pick up the coin at the end of the auction. Sounds complicated until you consider that a NYC resident who buys a 400K half disme at auction has a 35K tax to pay.

The trouble with idea is that your home state can still hit you up for use tax when you receive the item.

jmlanzaf · September 26, 2018 1:45PM

@messydesk said:
So is SB guaranteeing that they will remit taxes collected to the respective states, even if they are below the threshold for needing to remit them?

It would be highly illegal to collect sales tax and not remit.

BStrauss3 · September 26, 2018 6:58PM

It's actually a very interesting interpretation of the law.

The existing interpretation of the law required the collection of tax if you had a nexus (presence) in the state. Heritage collects sales tax from NJ residents because they have a subsidiary in NJ.

The Supreme Court decision Stack's references upheld an SD law placing the burden of collection on companies with no SD nexus. But for the other 55 jurisdictions (49 states, 6 territories/districts/commonwealths) there is nothing in PRESENT law requiring collection if you don't have a nexus. Will other states follow South Dakota? Certainly. As soon as their legislatures can meet and pass a law.

Will this - the collection in virtually all jurisdictions - be the lay of the land in 2-3 years? Yes.

But this decision places Stacks - today - in the position of collecting (and remitting) taxes in jurisdictions where there is no legal requirement to do so. And it could be a competitive disadvantage.

coinpalice · September 27, 2018 5:39AM

sales tax announcement from e bay

As you may know, the Supreme Court ruled in favor of South Dakota in June 2018, which removed the requirement that certain retailers have a physical presence in a state in order for that state to impose sales tax obligations on these retailers.

Some states have extended the tax collection obligation to marketplaces. We believe this ruling is unfair to small businesses and will continue to call for greater simplicity. In the meantime, we’re working to find the best way to support our sellers.

What this means for eBay sellers: Regardless of where you’re physically located, if you sell to buyers in certain states, those states may require you to collect applicable taxes on your transactions.

Therefore, based on these new laws, we will calculate, collect, and remit sales tax for orders shipped to customers in the following states on the following schedule:

Washington—starting Jan 1, 2019
Pennsylvania— starting July 1, 2019
Oklahoma—starting July 1, 2019

Once we start collecting tax in these states, you do not need to take any action. There are no extra charges or fees for this service. Prior to these dates, please continue to collect and remit tax in these states and comply with any other applicable requirements they impose.

There are no opt-outs for selling items into the states listed above, or out of eBay automatically collecting sales tax for items shipped to the states above.

Additional states will likely be added to the above list. Stay informed on the Help pages.

For more information on these new tax requirements, we recommend that you consult with your tax advisor. If you do not have a tax advisor, we’ve partnered with Avalara and TaxJar and they will have specific insights into the best course of action for you.

As always, thank you for selling on eBay.

pf70collector · September 27, 2018 9:19AM

@coinpalice said:
sales tax announcement from e bay

As you may know, the Supreme Court ruled in favor of South Dakota in June 2018, which removed the requirement that certain retailers have a physical presence in a state in order for that state to impose sales tax obligations on these retailers.

Some states have extended the tax collection obligation to marketplaces. We believe this ruling is unfair to small businesses and will continue to call for greater simplicity. In the meantime, we’re working to find the best way to support our sellers.

What this means for eBay sellers: Regardless of where you’re physically located, if you sell to buyers in certain states, those states may require you to collect applicable taxes on your transactions.

Therefore, based on these new laws, we will calculate, collect, and remit sales tax for orders shipped to customers in the following states on the following schedule:

Washington—starting Jan 1, 2019
Pennsylvania— starting July 1, 2019
Oklahoma—starting July 1, 2019

Once we start collecting tax in these states, you do not need to take any action. There are no extra charges or fees for this service. Prior to these dates, please continue to collect and remit tax in these states and comply with any other applicable requirements they impose.

There are no opt-outs for selling items into the states listed above, or out of eBay automatically collecting sales tax for items shipped to the states above.

Additional states will likely be added to the above list. Stay informed on the Help pages.

For more information on these new tax requirements, we recommend that you consult with your tax advisor. If you do not have a tax advisor, we’ve partnered with Avalara and TaxJar and they will have specific insights into the best course of action for you.

As always, thank you for selling on eBay.

I wonder if you can block those states on your BINs or auctions.

coinpalice · September 27, 2018 9:28AM

@pf70collector said:

@coinpalice said:
sales tax announcement from e bay

As you may know, the Supreme Court ruled in favor of South Dakota in June 2018, which removed the requirement that certain retailers have a physical presence in a state in order for that state to impose sales tax obligations on these retailers.

Some states have extended the tax collection obligation to marketplaces. We believe this ruling is unfair to small businesses and will continue to call for greater simplicity. In the meantime, we’re working to find the best way to support our sellers.

What this means for eBay sellers: Regardless of where you’re physically located, if you sell to buyers in certain states, those states may require you to collect applicable taxes on your transactions.

Therefore, based on these new laws, we will calculate, collect, and remit sales tax for orders shipped to customers in the following states on the following schedule:

Washington—starting Jan 1, 2019
Pennsylvania— starting July 1, 2019
Oklahoma—starting July 1, 2019

Once we start collecting tax in these states, you do not need to take any action. There are no extra charges or fees for this service. Prior to these dates, please continue to collect and remit tax in these states and comply with any other applicable requirements they impose.

There are no opt-outs for selling items into the states listed above, or out of eBay automatically collecting sales tax for items shipped to the states above.

Additional states will likely be added to the above list. Stay informed on the Help pages.

For more information on these new tax requirements, we recommend that you consult with your tax advisor. If you do not have a tax advisor, we’ve partnered with Avalara and TaxJar and they will have specific insights into the best course of action for you.

As always, thank you for selling on eBay.

I wonder if you can block those states on your BINs or auctions.

you could put will not sell to those states in your description, as you know, many more states to follow. it's going to definitely be harder to sell on e bay

mustangmanbob · September 27, 2018 3:30PM

If ebay charges the buyer, it will be basically transparent to the seller.

What it does mean, if the the state I live in (Texas) starts to collect on material I buy for inventory, it will make my sales tax form I file much more complicated. I will have to tally up all the ebay purchases and what ebay collected, and report that on my tax form.

jmlanzaf · September 27, 2018 6:18PM

I wonder if you can block those states on your BINs or auctions.

Why would you block them? The sales tax is their problem not yours.

BStrauss3 · September 27, 2018 6:55PM

Read the announcement - you can't opt out: "There are no opt-outs for selling items into the states listed above, or out of eBay automatically collecting sales tax for items shipped to the states above."

To @mustangmanbob 's point, IF Texas passes a sales tax law, he will have to separate Texas sales through eBay (already taxed and remitted) from other Texas sales (tax due).

thefinn · September 27, 2018 8:50PM

Bless you Utah! Common sense prevails.

Sales Tax Announcement from Stacks

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