Sales Tax Announcement from Stacks
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cwt
Posts: 292 ✭✭✭
cwt
Posts: 292 ✭✭✭
cwt
Posts: 292 ✭✭✭
Comments
Geez !!!
Swell. Louisiana’s sales tax is right at 10 percent.
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
Dead Cat Waltz Exonumia
"Coin collecting for outcasts..."
Expect realizations to decline as bidders adjust their bids downward to allow for the sales tax.
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%?
Bad day to be a consignor.
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.
the average little guy consignor does not get over hammer, but does get seller fees.
for now.... my hunch is that list will get longer
What's with Florida's coin tax law. So specific and with a low threshold. Strange.
Not a problem in CA if you stay away from widgets.
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.,
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.
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.
``https://ebay.us/m/KxolR5
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.
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.
My Ebay Store
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.
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
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?
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
Ah. Nice move then..
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.
Member ANA, SPMC, SCNA, FUN, CONECA
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.
All comments reflect the opinion of the author, evn when irrefutably accurate.
@jmlanzaf ... You make a good point, though these markets have always existed and likely will continue in one form or another. Cheers, RickO
Be careful on Ebay when buying. There may be some out of state sellers that will now charge you tax when buying.
I hope so. However with the new Supreme Court ruling, some states may look at "easy" ways to increase revenue
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.
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!
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.
Commems and Early Type
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.
connecticut is on that as well. ill move on with that one. what a bummer to
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?
Keeper of the VAM Catalog • Professional Coin Imaging • Prime Number Set • World Coins in Early America • British Trade Dollars • Variety Attribution
The trouble with idea is that your home state can still hit you up for use tax when you receive the item.
It would be highly illegal to collect sales tax and not remit.
All comments reflect the opinion of the author, evn when irrefutably accurate.
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.
ANA 50 year/Life Member (now "Emeritus")
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.
Box of 20
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
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.
Why would you block them? The sales tax is their problem not yours.
All comments reflect the opinion of the author, evn when irrefutably accurate.
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).
ANA 50 year/Life Member (now "Emeritus")
Bless you Utah! Common sense prevails.