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Has sales tax reduced your buying or pricing?
TurtleCat
Posts: 4,595 ✭✭✭✭✭
Now that many of us have sales tax charged (let’s set aside the issue of the use tax to avoid derailing the thread) on coin purchases, has it impacted how much you buy, how high you’ll go, or not impacted anything?
For me it’s reduced how high I’m willing to go on a coin. That puts me at a disadvantage to those people who don’t have sales tax to contend with. When I look at an auction where there’s a buyers premium, I have to factor the premium and tax now. For a place like heritage it’s almost 30%.
The state numismatic association has tried for years to get an exception for numismatics but it hasn’t passed yet.
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I was in the advantage category on ebay until just very recently, (not a true sales tax but a TPT tax) now ebay adds 5% so between the impact I'm feeling from the continued shutdown and this 5% has me buying far less. I would say bidding less but there are so few actual auctions vs set price listings. I have not bought anything from Heritage in years so if they are also charging a state TPT I would certainly adjust my bidding, however from most of the results we see posted here none of this has stifled coin sales.
My Collection of Old Holders
Never a slave to one plastic brand will I ever be.
Zero impact on buying as I have a resale license.
When eBay first started applying sales tax, there was a noticeable dropoff in sales.
Now clients have got used to it.
Most sales today are on the internet because of the pandemic.
Sales tax is automatically applied in most cases so there is not a lot buyer or seller can do about it except that it is now part of the equation.
From the California side, we've always needed to reach the $1500 level to avoid tax on coins and bullion for in state purchases. The addition of sales tax for out of state web purchases has defifnitely influenced my purchasing decisions. But maybe not in the manner one would expect. I have actually increased my planned dollar expenditure on several occasions recently to complete a tax-free purchase. Once I reach the $800 - $1000 level on an item, I'll throw in some bullion or other coins to get to $1500. At some point, it changes what would have otherwise been a $100 - $125 tax to a "free" add on.
Yes, it has impacted my buying. I really hate the tax for PM purchases. It's like adding another 7% to the spot price.
For collector coins, I now have to take into account for the tax which is over 7% in my state. The dealers never account for it themselves. The biggest issue is some dealers charge for it and others do not. It varies even among dealers operating in the same states.
Overall I have stopped buying expensive coins when sales tax is involved. I quit Heritage cold turkey when they began charging NJ residents tax because they have a NYC location.
There are some high-end coins in auction that I would have liked to bid on, but I'm not willing to add 7% to a large purchase.
I would like to know how REALLY large purchases, like 30 million for a painting, are being handled.
I have to think that even the very rich are not likely to merrily pay the 2-3 million in tax on that purchase.
Commems and Early Type
Before sales tax I was able to buy lots of gold on eBay at a reasonable price. That additional 8.375 (NV sales tax) puts me out of the market (in addition to the much higher price for gold).
I would think so, too. There may be some creative ways people pay for very expensive items. Just like corporations, when the price is high enough there’s enough incentive to exploit any loophole.
TurtleCat Gold Dollars
It's the tax more then the other. I don't need government in my collecting
I factor the tax into my purchase price before making the decision on a coin, which means the amount I'm willing to bid for a given coin has dropped ~7%
Nothing is as expensive as free money.
No, it's a fact of life. I'll live with it. We had a free ride so long we began to feel we shouldn't have to now. lol
Jim
When a man who is honestly mistaken hears the truth, he will either quit being mistaken or cease to be honest....Abraham Lincoln
Patriotism is supporting your country all the time, and your government when it deserves it.....Mark Twain
Coins and currency are exempt from sales tax in South Carolina so no problems here!
Member ANA, SPMC, SCNA, FUN, CONECA
Maybe I'm dense today! What is a TPT tax? Can't say I've heard of that!
Definitely affected my purchases. I no longer buy from EBay or any other seller that charges tax. There are still a few online sellers who don't charge tax...
Although they're required to collect it, sellers don't charge tax. Governments do.
Re Buying.....
I haven't bought a coin since early March.
Most years I would have bought 30+ double eagles by November.
The premiums have been my biggest deterrent the tax comes in second.
It has on higher priced coins.
With ebay, they want a sales and use tax license which are not that hard to get; but you may need to contact your local state senator or congressman to get them to expedite the submission especially during covid19 when many tax agents are operating remotely. Another complicated process (at times) I had to learn the hard way with few sharing such vital information freely.
using a sales and use tax license means you're paying business tax on sales and trades, right?
https://azdor.gov/transaction-privilege-tax-tpt
My Collection of Old Holders
Never a slave to one plastic brand will I ever be.
No sales tax on coins or bullion in Michigan.
No tax on coin, bullion, or currency in Nebraska.
This brings a question to mind. Does the US Mint charge sales tax on their already overpriced wares ?
I avoid taxes when possible...and it is usually possible. Of course, I do not buy a lot of things.... So I can shop around for the items I want, and usually can find a no tax seller. I know the addition of taxes to ebay items discouraged a lot of people for a while...now they seem to have become used to it, or maybe because of the virus constraints and the availability of venues, they tolerate it. Taxes rule our lives anymore....If most people really looked at all the taxes paid, there would likely be a revolt. Cheers, RickO
One thing that really annoys me about ebays tax choice is they charge based on the total, including shipping and handling. I think that’s wrong. They also charge it for international sellers as if that seller is going to remit payment to my site. If it wasn’t for the fact that there are a few items I only find there, I’d drop eBay for good.
I think I understood that Great Collections only collects from people who live in California. At least it appears that way on their site unless it’s old information they haven’t updated yet.
TurtleCat Gold Dollars
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Shipping is taxable in most states that have a sales tax.
No factor as I do not pay any sales tax.
Maybe another reason for the push to free shipping... Even if the cost is hidden in the item price.
TurtleCat Gold Dollars
If the shipping cost is included in the item price, you're still being taxed.
I love that $1500+ exemption in California. So I guess it's another tax that favors the rich.
George Harrison got it right, "If 5% appears too small... be thankful I don't take it all... cuz I'm the Taxman, ya, ya..."
Like I said, even if it is hidden in the cost. It’s a psychological thing. The same reason why items are 9.99 and not 10 and similar.
TurtleCat Gold Dollars
In the world of aviation, anything that increases drag makes it harder to fly. Increasing buyers premiums, sales tax, regulation, seemingly lowered liquidity for things I’ve sold recently, lack of shows, and a growing recognition of the opportunity cost of owning coins in a stagnant market all add drag in my world.
No sales tax in Alaska (yet...) but a lot of what I by comes from the UK so currency fluctuations are taken into account. If there is a no deal brexit I may need to go on a buying spree (hoping for pound parity with the dollar)
I hate paying tax on coins I purchase. It hasn’t slowed me down much but it’s cost me more than I like to pay.
Not sure what you folks speak of. Are you saying EBay will charge me sales tax ? I've made many EBay purchases and have never paid Indiana sales tax. Please enlighten me.
Yes, and if they haven’t yet they will soon. At least once the tax is made compliant with the Supreme Court guidelines. That’s pretty much the only thing that kept it from happening immediately in most states.
TurtleCat Gold Dollars
Should I call it a fee then, not a tax ? So its gonna be like Heritage where sellers and buyers pay fees at forever rising percentages that are claimed to be operating expenses ? Eventually there's no room left for collector me.
Price guides and auction results don’t factor in sales tax. If you live in a state that has a sales tax on coins you’re at a competitive disadvantage when buying at an auction unless you’re willing to pay 5-10% more to be a competitive bidder.
This. I pay insane property taxes for all sorts of "hippie" and conservative stuff I don't believe in. Then, I gotta pay for all the statewide initiatives and protections I actually believe in.
I'm not supposed to have tax on my goods. That was 'The Deal'.
I do not buy coins from anyone who collects anything. Hard pass on everything: never really gets past napkin math. If it comes down to shady transactions of bricks lol fine.
I especially agree with your last sentence. Taxes paid today are far higher than what was paid to the king. We all know how that ended!
Sales tax is automatically applied in most cases so there is not a lot buyer or seller can do about it except that it is now part of the equation.
Just do what I did several years ago - move to a lower tax state!
Member ANA, SPMC, SCNA, FUN, CONECA
Buying, not so much, if I want it...I want it.
Selling; I did not think that sales taxes would vary so much as far as "not taxable", especially California. I had another thread about a buyer who cancelled the sale because he did not want to pay the sales tax on a $1499.99 item. Forum members suggested to raise the price to 1500.01 to exceed the table value. I thought that $1499.99 looked more attractive than $1500. I am not so sure about shipping being taxed as well, if that were the case, would the amount of the aforementioned item be over $1500 and not taxable? Unless the shipping was taxed separately.
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My state, NC, is exempt and half the time ebay STILL charges it! Then you have to go through a bunch of wasted time to get it refunded... It makes me not want to buy coins on ebay anymore. I know several friends that have had to deal with it.
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It is simply an Opex expense part of markup equation cost plus or FOH application.
Texas has no sales tax on coins. I see where eBay charging sales tax to out of state buyers (taxable in their state) collecting and remitting on my behalf.
I would not worry anymore about sales tax (a non controllable based on statute law) than the cost of attending a show fee, food, gas, travel, parking. If I did have an acquisition which included sales tax that would be added to inventory cost (just if like if it had ship cost) of item then recovered via the markup equation.
I was able to get a recent non due sales tax refunded after contacting ebay several times and having the issue run through their accounting department.
If you do, just remember why you moved.
f you do, just remember why you moved.
Not a problem there, I definitely remember why I moved and vote appropriately.
Member ANA, SPMC, SCNA, FUN, CONECA
Here are the shipping tax rules in Pa:
Summary of Sales Tax on Shipping in Pennsylvania
Considering the fact that Pennsylvania can be a very tough state for sellers to deal with in many ways, it’s almost surprising that their rules on the taxability of shipping are so straightforward. Remember:
All items taxable – shipping is taxable
All items non-taxable – shipping is not taxable
A mix of taxable and non-taxable items – shipping is taxable
Coins and bullion are not taxable in Pa. Therefore if you order only coins or bullion and you are in Pa. There should be no tax on the shipping charge.
Also, when you go to the PO and mail something the PO does not collect any taxes.