@SDSportsFan said:
Does anyone know how ebay is handling this scenario:
Say a coin ends with a high-bid of $1,470, and the buyer is in California. With the sales tax, they'd pay around $1,600 for the coin. If the coin had sold for $1,501, there would be no tax, and the buyer would pay about $100 less. Same thing in other states, where there is a specific $$ threshhold for sales tax collection. You end up with a price-inversion, where the buyer ends up paying more for a coin, than another buyer in their same state, for a coin that sold for less.
Can the seller just up the price to $1,501 in this situation, saving the buyer the roughly $100?
Steve
ap year.
The cost is trivial. But why would I tolerate a buyer who causes trouble. I would block people for canceling even before the PayPal change. I'm not running an approval service.
Even your heroes at Amazon will block buyers for excessive returns, as do all major retailers.
I have blocked a guy for asking a question. I don't mind questions but i realized that he was seeking near perfection in a coin and i figured it would involve a return, so i have no problem with the occasional action.
But the tax issue combined with new PP policy makes the Ebay experience more than a bit less streamlined. That is never good for business.
It's a challenge for the internet, not just eBay. Amazon retailing is also going to face headwinds. In that sense, the States got what they wanted: a more level playing field for B&M's. Not to mention a windfall in revenue.
They don't care about the level playing field. You are correct about the windfall.
They DO care about the level playing field because it was shuttering businesses in their states. The financial hit was greater than just the lost sales tax.
Same guys that reward Amazon with tax handouts after they wiped out hundreds of thousands of Brick and Mortars. No way.
This is simply untrue.
You are conflating the States and the Feds.
The Feds have given tax benefits to Amazon.
The only States that gave Amazon local tax benefits were those that got Amazon to locate operations in their State. The States themselves have been after Amazon for 20 years for sales tax. Amazon fought them for most of those 20 years until they had ended up with nexus in so many states that it didn't matter. The States have also been complaining for 20 years about what the internet was doing to local businesses.
So tell me the number of states that lowered the overall sales tax rate as this new windfall will overflow their coffers. That would help all of the retailers.
Interesting question/problem, basic econ says if you tax something you get less of it...see Henry Hazlet
I have thought hard and often about both Ebay fees( my main non-wholesale) selling platform and now, the sales tax collection on that platform. To me , price guides like Greysheet need to note that the prices are for face to face cash transactions and that fees, commissions and sales taxes should be expected added expenses to these wholesale prices. Lately, my experience with nice, $500-$3500 coin listings are solicitations (off site) to buy the coins for around Greysheet ask( in many cases already discounted 20%-40% from a few years ago) , but with me eating ebay fees, paypal, and in some cases eating sales tax....I am sure that is not a sustainable business model.
Many times a sale is scuttled over the last 5%....I usually stick to my guns, my best price is my best price, because at the end of the day, coin values cannot go up, if we continue to devalue our offerings....
Update: I wrote this quote a while ago as I wanted to talk to Ebay about this but they have not bothered t respond to my request. Decided to post to tie in with my FUN show post.
@SDSportsFan said:
Does anyone know how ebay is handling this scenario:
Say a coin ends with a high-bid of $1,470, and the buyer is in California. With the sales tax, they'd pay around $1,600 for the coin. If the coin had sold for $1,501, there would be no tax, and the buyer would pay about $100 less. Same thing in other states, where there is a specific $$ threshhold for sales tax collection. You end up with a price-inversion, where the buyer ends up paying more for a coin, than another buyer in their same state, for a coin that sold for less.
Can the seller just up the price to $1,501 in this situation, saving the buyer the roughly $100?
Steve
ap year.
The cost is trivial. But why would I tolerate a buyer who causes trouble. I would block people for canceling even before the PayPal change. I'm not running an approval service.
Even your heroes at Amazon will block buyers for excessive returns, as do all major retailers.
I have blocked a guy for asking a question. I don't mind questions but i realized that he was seeking near perfection in a coin and i figured it would involve a return, so i have no problem with the occasional action.
But the tax issue combined with new PP policy makes the Ebay experience more than a bit less streamlined. That is never good for business.
It's a challenge for the internet, not just eBay. Amazon retailing is also going to face headwinds. In that sense, the States got what they wanted: a more level playing field for B&M's. Not to mention a windfall in revenue.
They don't care about the level playing field. You are correct about the windfall.
They DO care about the level playing field because it was shuttering businesses in their states. The financial hit was greater than just the lost sales tax.
Same guys that reward Amazon with tax handouts after they wiped out hundreds of thousands of Brick and Mortars. No way.
This is simply untrue.
You are conflating the States and the Feds.
The Feds have given tax benefits to Amazon.
The only States that gave Amazon local tax benefits were those that got Amazon to locate operations in their State. The States themselves have been after Amazon for 20 years for sales tax. Amazon fought them for most of those 20 years until they had ended up with nexus in so many states that it didn't matter. The States have also been complaining for 20 years about what the internet was doing to local businesses.
The closing of B&M's is an independent issue to collecting sales tax. Online shopping is so much easier that it is going win, tax or no tax. States are just using this as an excuse to grab more money but I don't see services improving............
@Alshouse said:
Ask the seller if he would’ve willing to give a discount equal to the tax amount. Sometimes the amount is so insignificant this might work.
As a seller I did this exact thing and the buyer paid immediately. The amount was $2.40.
I would be embarrassed to ask for a $2.40 discount because of tax.
@SDSportsFan said:
Does anyone know how ebay is handling this scenario:
Say a coin ends with a high-bid of $1,470, and the buyer is in California. With the sales tax, they'd pay around $1,600 for the coin. If the coin had sold for $1,501, there would be no tax, and the buyer would pay about $100 less. Same thing in other states, where there is a specific $$ threshhold for sales tax collection. You end up with a price-inversion, where the buyer ends up paying more for a coin, than another buyer in their same state, for a coin that sold for less.
Can the seller just up the price to $1,501 in this situation, saving the buyer the roughly $100?
Steve
ap year.
The cost is trivial. But why would I tolerate a buyer who causes trouble. I would block people for canceling even before the PayPal change. I'm not running an approval service.
Even your heroes at Amazon will block buyers for excessive returns, as do all major retailers.
I have blocked a guy for asking a question. I don't mind questions but i realized that he was seeking near perfection in a coin and i figured it would involve a return, so i have no problem with the occasional action.
But the tax issue combined with new PP policy makes the Ebay experience more than a bit less streamlined. That is never good for business.
It's a challenge for the internet, not just eBay. Amazon retailing is also going to face headwinds. In that sense, the States got what they wanted: a more level playing field for B&M's. Not to mention a windfall in revenue.
They don't care about the level playing field. You are correct about the windfall.
They DO care about the level playing field because it was shuttering businesses in their states. The fi thnancial hit was greater than just the lost sales tax.
Same guys that reward Amazon with tax handouts after they wiped out hundreds of thousands of Brick and Mortars. No way.
This is simply untrue.
You are conflating the States and the Feds.
The Feds have given tax benefits to Amazon.
The only States that gave Amazon local tax benefits were those that got Amazon to locate operations in their State. The States themselves have been after Amazon for 20 years for sales tax. Amazon fought them for most of those 20 years until they had ended up with nexus in so many states that it didn't matter. The States have also been complaining for 20 years about what the internet was doing to local businesses.
The closing of B&M's is an independent issue to collecting sales tax. Online shopping is so much easier that it is going win, tax or no tax. States are just using this as an excuse to grab more money but I don't see services improving............
Best, SH
I don't disagree, although I'm less than 100% certain that needs to be true. There are some things (clothing, shoes) that can be difficult to buy online. Groceries is another big area.
But, that was the rationale, whether you think it's going to work or not.
@Alshouse said:
Ask the seller if he would’ve willing to give a discount equal to the tax amount. Sometimes the amount is so insignificant this might work.
As a seller I did this exact thing and the buyer paid immediately. The amount was $2.40.
I would be embarrassed to ask for a $2.40 discount because of tax.
$2.40 tax here would mean about a $34 coin. Why should a seller eat that because of factors out of their control? That's just lame. I'd consider canceling the sale and blocking their arse. Dealing with people like that is a PITA.
@Alshouse said:
Ask the seller if he would’ve willing to give a discount equal to the tax amount. Sometimes the amount is so insignificant this might work.
As a seller I did this exact thing and the buyer paid immediately. The amount was $2.40.
I would be embarrassed to ask for a $2.40 discount because of tax.
$2.40 tax here would mean about a $34 coin. Why should a seller eat that because of factors out of their control? That's just lame. I'd consider canceling the sale and blocking their arse. Dealing with people like that is a PITA.
For a lot of $34 coins, $2.40 is half or more of the profit.
Has sales tax on Ebay purchases affected your pulling the trigger on coins?
Yes. Especially when I would want to take advantage of eBay bucks promotions. I use to enjoy buying rolls of ASE's when it was 10%-15% eBay bucks rewards or Gold 20 Francs for below melt. Now I just buy this stuff off of forums, my LCS or somewhere else.
@Alshouse said:
Ask the seller if he would’ve willing to give a discount equal to the tax amount. Sometimes the amount is so insignificant this might work.
As a seller I did this exact thing and the buyer paid immediately. The amount was $2.40.
I would be embarrassed to ask for a $2.40 discount because of tax.
$2.40 tax here would mean about a $34 coin. Why should a seller eat that because of factors out of their control? That's just lame. I'd consider canceling the sale and blocking their arse. Dealing with people like that is a PITA.
For a lot of $34 coins, $2.40 is half or more of the profit.
Yep. People like that are a PITA whether it's eBay or anywhere else. ST is just another factor to consider when shopping for the best deal.
As a Californian, I am a lot less likely to buy a coin under $1500 on eBay now knowing that I will have to pay 10.25% of sales tax on top of the price - no sales tax over $1500. The coin basically would either i) need to be discounted 10.25% or ii) be that irreplaceable/unique.
I just ripped this dollar up and am about to throw the pieces out the window. The reason I did this is to protest the extra buck that Paypal just took from me to cover the tax on a coin sale earlier today.
For those that say the dollar doesn't matter, try ripping one up yourself. It is not that easy and gives you a bit of a queasy feeling.
Spent my eBay bucks and haven’t been on the site since except to sell a few non coin things. I buried myself just fine before the tax no need for me to shovel on 6-10% more dirt however much the tax is.
A terrible situation for eBay they’re going to get crushed by this and it’s out of their control at this point.
I just ripped this dollar up and am about to throw the pieces out the window. The reason I did this is to protest the extra buck that Paypal just took from me to cover the tax on a coin sale earlier today.
For those that say the dollar doesn't matter, try ripping one up yourself. It is not that easy and gives you a bit of a queasy feeling.
What extra dollar did they take, I’m curious? Fees paid on tax dollar eBay collected?
That is why many states exempt sales tax on coins and others set an arbitrary cap as California does.
As a Californian, the sales tax imposition has definitely curtailed my ebay shopping. Since we don't pay sales tax on purchases over $1500, I am accumulating my purchases and attempting to reach this level whenever possible, mostly through my local coin store and APMEX.
Interesting note - if one orders a coin/bullion on a single item over $1500, ebay has the logic to bypass the sales tax. However, if one orders coins from two separate auctions which are individually under $1500 but collectively exceed that amount, their system will still charge sales tax. Even when purchasing from the same seller in the same transaction.
I reported this to an ebay tax specialist who thanked me for my "interesting" observation
@Alshouse said:
Ask the seller if he would’ve willing to give a discount equal to the tax amount. Sometimes the amount is so insignificant this might work.
As a seller I did this exact thing and the buyer paid immediately. The amount was $2.40.
I would be embarrassed to ask for a $2.40 discount because of tax.
$2.40 tax here would mean about a $34 coin. Why should a seller eat that because of factors out of their control? That's just lame. I'd consider canceling the sale and blocking their arse. Dealing with people like that is a PITA.
For a lot of $34 coins, $2.40 is half or more of the profit.
Yep. People like that are a PITA whether it's eBay or anywhere else. ST is just another factor to consider when shopping for the best deal.
I have a 1990 Canada Double Dollar set for sale on eBay for $19.99. Now, it costs $4 or $5 just to ship it. And, there's a Canada silver dollar in it. So, a guy offers me $13 - which is barely above melt on the Silver $ after shipping. I countered at $18. So he offered $14> @Coinstartled said:
I just ripped this dollar up and am about to throw the pieces out the window. The reason I did this is to protest the extra buck that Paypal just took from me to cover the tax on a coin sale earlier today.
For those that say the dollar doesn't matter, try ripping one up yourself. It is not that easy and gives you a bit of a queasy feeling.
Doesn't this amount to biting your nose to spite your face?
You should probably tear up $5000 or $10,000 to protest income taxes.
@Coinstartled said:
I just ripped this dollar up and am about to throw the pieces out the window. The reason I did this is to protest the extra buck that Paypal just took from me to cover the tax on a coin sale earlier today.
For those that say the dollar doesn't matter, try ripping one up yourself. It is not that easy and gives you a bit of a queasy feeling.
I remember the $1500 threshold for tax in California going back at least 25 years. Glad they didn't change that. Now, they get plenty from the Cali Gas Tax. They are spending our tax monies like drunk sailors.
It absolutely has affected the way I bid. I complained about it to the Ebay folks at the ANA back in August. Of course, it seems their hands are tied. I live in KY so a 6% tax is collected so therefore I have to take that in to account since I'm always buying with the intent to resell at the coin shows I attend. Even more aggravating is that they also collect tax on the shipping. My complaint to them was that by default purchasers in Georgia or Alabama, for example, can bid more than I can. What can you do? I do some shows in TN and there's work being done to remove the sales tax from coins and bullion, as I understand it.
Absolutely, it is a lot harder to buy coin especially when I only have the amount the coin costs and need to spend an additional amount over my budget.
Example is my Indian head cent PR 64 1888 BN witch cost $285 but tax as $17 so I had to ask my parents for extra money.
@CoinPhysicist said:
As a Californian, I am a lot less likely to buy a coin under $1500 on eBay now knowing that I will have to pay 10.25% of sales tax on top of the price - no sales tax over $1500. The coin basically would either i) need to be discounted 10.25% or ii) be that irreplaceable/unique.
Or you could work with someone like myself to get it for you.
@kycoincab said:
It absolutely has affected the way I bid. I complained about it to the Ebay folks at the ANA back in August. Of course, it seems their hands are tied. I live in KY so a 6% tax is collected so therefore I have to take that in to account since I'm always buying with the intent to resell at the coin shows I attend. Even more aggravating is that they also collect tax on the shipping. My complaint to them was that by default purchasers in Georgia or Alabama, for example, can bid more than I can. What can you do? I do some shows in TN and there's work being done to remove the sales tax from coins and bullion, as I understand it.
You can get a sales tax exemption/resale certificate as a reseller if you are a legitimate business. It is assumed that you will instead collect the tax from whomever you sell it too unless that would be yet another dealer.
Quite frankly, I would NOT want to be a tax collecting agent for the state of Iowa.
@Coinstartled said:
Rare coins should not be taxed any more than a share of stock.
In my state they are not.
One could argue that it's common merchandise in the same way that a fishing rod is.
One could argue that a fishing rod is a means to feed oneself.
Fast food is taxed here, grocery store food is not. Plastic table ware is taxed. Paper plates are taxed. There's no valid reason why money that is no longer used for money should be tax exempt.
@Coinstartled said:
Rare coins should not be taxed any more than a share of stock.
In my state they are not.
One could argue that it's common merchandise in the same way that a fishing rod is.
One could argue that a fishing rod is a means to feed oneself.
Fast food is taxed here, grocery store food is not. Plastic table ware is taxed. Paper plates are taxed. There's no valid reason why money that is no longer used for money should be tax exempt.
It is difficult to debate taxation with a Democrat.
@Coinstartled said:
Rare coins should not be taxed any more than a share of stock.
In my state they are not.
One could argue that it's common merchandise in the same way that a fishing rod is.
One could argue that a fishing rod is a means to feed oneself.
Fast food is taxed here, grocery store food is not. Plastic table ware is taxed. Paper plates are taxed. There's no valid reason why money that is no longer used for money should be tax exempt.
It is difficult to debate taxation with a Democrat.
The Republican Governor here wants to bump ST from 7% to 8%. This on top of the windfall they're getting from Amazon and eBay.
@Coinstartled said:
Rare coins should not be taxed any more than a share of stock.
In my state they are not.
One could argue that it's common merchandise in the same way that a fishing rod is.
One could argue that a fishing rod is a means to feed oneself.
Fast food is taxed here, grocery store food is not. Plastic table ware is taxed. Paper plates are taxed. There's no valid reason why money that is no longer used for money should be tax exempt.
It is difficult to debate taxation with a Democrat.
What is there about an 1881-S Morgan that it shouldn't be taxable? It's certainly not rare. If you make a profit from selling one that profit is taxed.
If the precious metal has a face value, such as a coin, and the value is more than 50% higher than the face value, it
is taxable. All other non legal tender products are taxable.
Numismatic items fitting into the non taxable area are tough.
And On T since I mainly bought bullion-type items on eBay the 8.1% sales tax knocks me out of the bidding.
@kycoincab said:
It absolutely has affected the way I bid. I complained about it to the Ebay folks at the ANA back in August. Of course, it seems their hands are tied. I live in KY so a 6% tax is collected so therefore I have to take that in to account since I'm always buying with the intent to resell at the coin shows I attend. Even more aggravating is that they also collect tax on the shipping. My complaint to them was that by default purchasers in Georgia or Alabama, for example, can bid more than I can. What can you do? I do some shows in TN and there's work being done to remove the sales tax from coins and bullion, as I understand it.
Complain to the State of Kentucky. eBay does not want to collect sales tax.
@Coinstartled said:
Rare coins should not be taxed any more than a share of stock.
In my state they are not.
One could argue that it's common merchandise in the same way that a fishing rod is.
One could argue that a fishing rod is a means to feed oneself.
Fast food is taxed here, grocery store food is not. Plastic table ware is taxed. Paper plates are taxed. There's no valid reason why money that is no longer used for money should be tax exempt.
I agree with this. Unfortunately. It is just another collectible. If comic books, sports cards and beanie babies are taxable...
Yes, but I view it as states charging tax, not eBay charging tax. eBay would prefer not to charge tax and even sends out messages recommending people get resale permits and the like if the can.
@Coinstartled said:
Rare coins should not be taxed any more than a share of stock.
In my state they are not.
One could argue that it's common merchandise in the same way that a fishing rod is.
One could argue that a fishing rod is a means to feed oneself.
Fast food is taxed here, grocery store food is not. Plastic table ware is taxed. Paper plates are taxed. There's no valid reason why money that is no longer used for money should be tax exempt.
I agree with this. Unfortunately. It is just another collectible. If comic books, sports cards and beanie babies are taxable...
Another slippery sloper.
Is a Saint Gauden $20 just another collectable. What about a share of Microsoft stock? Please explain the difference from a taxation standpoint.
Anyone have a link breaking down what is taxed, and what the thresholds are? If I buy a radar note, I have to pay sales tax on it? That's ridiculous and criminal imo. I know on the JM Bullion site, $1000 or more is not taxed here in the Consumption State, aka CT. The committee of 5 would not be happy.
@Coinstartled said:
Rare coins should not be taxed any more than a share of stock.
In my state they are not.
One could argue that it's common merchandise in the same way that a fishing rod is.
One could argue that a fishing rod is a means to feed oneself.
Fast food is taxed here, grocery store food is not. Plastic table ware is taxed. Paper plates are taxed. There's no valid reason why money that is no longer used for money should be tax exempt.
I agree with this. Unfortunately. It is just another collectible. If comic books, sports cards and beanie babies are taxable...
Another slippery sloper.
Is a Saint Gauden $20 just another collectable. What about a share of Microsoft stock? Please explain the difference from a taxation standpoint.
If you pay more than the cash or bullion value, it's a collectible. Some states have specific definitions. If you paid $500 for a $200 share of Microsoft stock, that would also count.
The slippery slope works both ways. If you buy a Spiderman #1 for$20k, that is as much an investment as a coin.
Well, You could make your PO Box your billing address. I would have to wonder though, as a PO Box does require a permanent address linked to it to be able to rent one.
@amwldcoin said:
Well, You could make your PO Box your billing address. I would have to wonder though, as a PO Box does require a permanent address linked to it to be able to rent one.
No big deal. Where I used to live, everybody had PO boxes because there was no home delivery.
@Zoins said:
Yes, but I view it as states charging tax, not eBay charging tax. eBay would prefer not to charge tax and even sends out messages recommending people get resale permits and the like if the can.
States charge ST. eBay is their collection agency.
@amwldcoin said:
Well, You could make your PO Box your billing address. I would have to wonder though, as a PO Box does require a permanent address linked to it to be able to rent one.
@taciturn said:
Is it possible to have P.O. box in states without taxes and let forward the parcel to your address?
You'd have to check with ebay as to whether they are using the shipping address or the billing address.
There are a lot of railroad workers in states like Wyoming that essentially live in motels so possibly they can get P O boxes. What good would an out of state P O box be unless you live close to the border or have a trusted friend to retrieve contents from it.
Comments
This is simply untrue.
You are conflating the States and the Feds.
The Feds have given tax benefits to Amazon.
The only States that gave Amazon local tax benefits were those that got Amazon to locate operations in their State. The States themselves have been after Amazon for 20 years for sales tax. Amazon fought them for most of those 20 years until they had ended up with nexus in so many states that it didn't matter. The States have also been complaining for 20 years about what the internet was doing to local businesses.
So tell me the number of states that lowered the overall sales tax rate as this new windfall will overflow their coffers. That would help all of the retailers.
I'll wait....
Yes it has.
Interesting question/problem, basic econ says if you tax something you get less of it...see Henry Hazlet
I have thought hard and often about both Ebay fees( my main non-wholesale) selling platform and now, the sales tax collection on that platform. To me , price guides like Greysheet need to note that the prices are for face to face cash transactions and that fees, commissions and sales taxes should be expected added expenses to these wholesale prices. Lately, my experience with nice, $500-$3500 coin listings are solicitations (off site) to buy the coins for around Greysheet ask( in many cases already discounted 20%-40% from a few years ago) , but with me eating ebay fees, paypal, and in some cases eating sales tax....I am sure that is not a sustainable business model.
Many times a sale is scuttled over the last 5%....I usually stick to my guns, my best price is my best price, because at the end of the day, coin values cannot go up, if we continue to devalue our offerings....
Update: I wrote this quote a while ago as I wanted to talk to Ebay about this but they have not bothered t respond to my request. Decided to post to tie in with my FUN show post.
RJ/Verno
The closing of B&M's is an independent issue to collecting sales tax. Online shopping is so much easier that it is going win, tax or no tax. States are just using this as an excuse to grab more money but I don't see services improving............
Best, SH
I would be embarrassed to ask for a $2.40 discount because of tax.
I don't disagree, although I'm less than 100% certain that needs to be true. There are some things (clothing, shoes) that can be difficult to buy online. Groceries is another big area.
But, that was the rationale, whether you think it's going to work or not.
$2.40 tax here would mean about a $34 coin. Why should a seller eat that because of factors out of their control? That's just lame. I'd consider canceling the sale and blocking their arse. Dealing with people like that is a PITA.
For a lot of $34 coins, $2.40 is half or more of the profit.
Has sales tax on Ebay purchases affected your pulling the trigger on coins?
Yes. Especially when I would want to take advantage of eBay bucks promotions. I use to enjoy buying rolls of ASE's when it was 10%-15% eBay bucks rewards or Gold 20 Francs for below melt. Now I just buy this stuff off of forums, my LCS or somewhere else.
Yep. People like that are a PITA whether it's eBay or anywhere else. ST is just another factor to consider when shopping for the best deal.
As a Californian, I am a lot less likely to buy a coin under $1500 on eBay now knowing that I will have to pay 10.25% of sales tax on top of the price - no sales tax over $1500. The coin basically would either i) need to be discounted 10.25% or ii) be that irreplaceable/unique.
Successful transactions with: wondercoin, Tetromibi, PerryHall, PlatinumDuck, JohnMaben/Pegasus Coin & Jewelry, CoinFlip, and coinlieutenant.
This is how sellers are encouraged to raise their prices.
I just ripped this dollar up and am about to throw the pieces out the window. The reason I did this is to protest the extra buck that Paypal just took from me to cover the tax on a coin sale earlier today.
For those that say the dollar doesn't matter, try ripping one up yourself. It is not that easy and gives you a bit of a queasy feeling.
Spent my eBay bucks and haven’t been on the site since except to sell a few non coin things. I buried myself just fine before the tax no need for me to shovel on 6-10% more dirt however much the tax is.
A terrible situation for eBay they’re going to get crushed by this and it’s out of their control at this point.
I > @Coinstartled said:
What extra dollar did they take, I’m curious? Fees paid on tax dollar eBay collected?
Yes. Paypal charges a 2.9% fee on the tax collected.
*Actually $1.50 but I am not so good at tearing quarters apart.
As a Californian, the sales tax imposition has definitely curtailed my ebay shopping. Since we don't pay sales tax on purchases over $1500, I am accumulating my purchases and attempting to reach this level whenever possible, mostly through my local coin store and APMEX.
Interesting note - if one orders a coin/bullion on a single item over $1500, ebay has the logic to bypass the sales tax. However, if one orders coins from two separate auctions which are individually under $1500 but collectively exceed that amount, their system will still charge sales tax. Even when purchasing from the same seller in the same transaction.
I reported this to an ebay tax specialist who thanked me for my "interesting" observation
I have a 1990 Canada Double Dollar set for sale on eBay for $19.99. Now, it costs $4 or $5 just to ship it. And, there's a Canada silver dollar in it. So, a guy offers me $13 - which is barely above melt on the Silver $ after shipping. I countered at $18. So he offered $14> @Coinstartled said:
Doesn't this amount to biting your nose to spite your face?
You should probably tear up $5000 or $10,000 to protest income taxes.
Rare coins should not be taxed any more than a share of stock.
In my state they are not.
You taped that back up didn't you ?
Beany babies should be tax exempt also.
Agree
I remember the $1500 threshold for tax in California going back at least 25 years. Glad they didn't change that. Now, they get plenty from the Cali Gas Tax. They are spending our tax monies like drunk sailors.
100% Positive BST transactions
It absolutely has affected the way I bid. I complained about it to the Ebay folks at the ANA back in August. Of course, it seems their hands are tied. I live in KY so a 6% tax is collected so therefore I have to take that in to account since I'm always buying with the intent to resell at the coin shows I attend. Even more aggravating is that they also collect tax on the shipping. My complaint to them was that by default purchasers in Georgia or Alabama, for example, can bid more than I can. What can you do? I do some shows in TN and there's work being done to remove the sales tax from coins and bullion, as I understand it.
Absolutely, it is a lot harder to buy coin especially when I only have the amount the coin costs and need to spend an additional amount over my budget.
Example is my Indian head cent PR 64 1888 BN witch cost $285 but tax as $17 so I had to ask my parents for extra money.
Or you could work with someone like myself to get it for you.
You can get a sales tax exemption/resale certificate as a reseller if you are a legitimate business. It is assumed that you will instead collect the tax from whomever you sell it too unless that would be yet another dealer.
Quite frankly, I would NOT want to be a tax collecting agent for the state of Iowa.
One could argue that it's common merchandise in the same way that a fishing rod is.
One could argue that a fishing rod is a means to feed oneself.
Fast food is taxed here, grocery store food is not. Plastic table ware is taxed. Paper plates are taxed. There's no valid reason why money that is no longer used for money should be tax exempt.
It is difficult to debate taxation with a Democrat.
The Republican Governor here wants to bump ST from 7% to 8%. This on top of the windfall they're getting from Amazon and eBay.
What is there about an 1881-S Morgan that it shouldn't be taxable? It's certainly not rare. If you make a profit from selling one that profit is taxed.
A little OT but here in Vegas:
If the precious metal has a face value, such as a coin, and the value is more than 50% higher than the face value, it
is taxable. All other non legal tender products are taxable.
Numismatic items fitting into the non taxable area are tough.
And On T since I mainly bought bullion-type items on eBay the 8.1% sales tax knocks me out of the bidding.
Government, destroying America one tax or regulation at a time.
Paper money eventually returns to its intrinsic value. Zero. Voltaire. Ebay coinbowlllc
Complain to the State of Kentucky. eBay does not want to collect sales tax.
I agree with this. Unfortunately. It is just another collectible. If comic books, sports cards and beanie babies are taxable...
Yes, but I view it as states charging tax, not eBay charging tax. eBay would prefer not to charge tax and even sends out messages recommending people get resale permits and the like if the can.
Another slippery sloper.
Is a Saint Gauden $20 just another collectable. What about a share of Microsoft stock? Please explain the difference from a taxation standpoint.
Anyone have a link breaking down what is taxed, and what the thresholds are? If I buy a radar note, I have to pay sales tax on it? That's ridiculous and criminal imo. I know on the JM Bullion site, $1000 or more is not taxed here in the Consumption State, aka CT. The committee of 5 would not be happy.
Is it possible to have P.O. box in states without taxes and let forward the parcel to your address?
You'd have to check with ebay as to whether they are using the shipping address or the billing address.
If you pay more than the cash or bullion value, it's a collectible. Some states have specific definitions. If you paid $500 for a $200 share of Microsoft stock, that would also count.
The slippery slope works both ways. If you buy a Spiderman #1 for$20k, that is as much an investment as a coin.
I factor the tax into my purchases. However, the state of Taxachusetts waives sales tax when the cost exceeds $1k.
Cheers
Bob
Well, You could make your PO Box your billing address. I would have to wonder though, as a PO Box does require a permanent address linked to it to be able to rent one.
No big deal. Where I used to live, everybody had PO boxes because there was no home delivery.
States charge ST. eBay is their collection agency.
There are a lot of railroad workers in states like Wyoming that essentially live in motels so possibly they can get P O boxes. What good would an out of state P O box be unless you live close to the border or have a trusted friend to retrieve contents from it.
The existence of sales tax on ebay items can make the offerings on retail seller sites more attractive for sure.
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