California - currency and coins - is there sales tax?
asheland
Posts: 23,817 ✭✭✭✭✭
My brother lives in California, and today he bought a note on eBay. A PMG graded note that was $2800, they charged him sales tax and for some reason I feel like that was not supposed to happen. Does anybody know for sure? Do they charge sales tax on currency at that price level?
If not, I’m going to encourage him to contact eBay and get a refund on that tax.
I know it’s different from states of state, I’m in North Carolina and of course everything is exempt at all price levels, currency, coins, and bullion…
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I live in California, and I’m confused about the whole tax thing. At coin shows some dealers charge tax, most don’t. Same with coin stores, it used to be something like if over $1000, no tax and I had to bundle purchases to get it over $1000 but I’m not sure anymore and I think the laws changed. Ebay seems to charge tax more often than not, even if they aren’t supposed to, and I just pay it without fighting it and I try to remember that I’ll probably be charged taxes when I bid.
Mr_Spud
I thought as long as the total was larger than $1500 no state tax was charged.
- Bob -
MPL's - Lincolns of Color
Central Valley Roosevelts
I am NOT a tax expert.
That said, here is what Heritage and Stack's say.
Edited to add:
CA has a webpage about applying sales tax.
Link: https://www.cdtfa.ca.gov/taxes-and-fees/applying-tax-sales-purchases-faq.htm
As @MetroD linked, the rule for coins is now that is has to be at least $2,000 to not be taxed (used to be $1,500 but changed in 2023). Currency is taxed regardless of the price.
It appears CA raised the threshold.
All comments reflect the opinion of the author, even when irrefutably accurate.
Currency sales to CA have been taxed by ebay at all price points
Unless they have a resale cert on file at ebay
They are taxable at all price points
All comments reflect the opinion of the author, even when irrefutably accurate.
Threshold increased to $1,500 on 1/1/09, and to $2,000 on 1/1/23. (Reference; top bullet on page #43)
It is subject to future adjustments based on inflation. (Reference)
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