Washington State Wants to Kill Precious Metal Investing
taxmad
Posts: 1,178 ✭✭✭✭
If you think you can avoid the tax by purchasing from non-Washington stores, the State will be registering APMEX, Bullion Exchange, etc and EBay/Costco are already set up to charge tax. This will apply to bullion and monetized bullion (90% US Codes will now be taxed 10%). The selling company will owe .5% tax on the gross sales price.
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Don't pay it. Starve the SOBs.
So, somehow the Washington state Joint Legislative Audit and Review Committee (JLARC) came to the conclusion that tax exemption "may not be achieving the inferred public policy objective of making Washington coin and bullion dealers more competitive with out-of-state competitors...".
And, also somehow, the answer to that is to add a 10% tax to the purchase of all products? Why don't they just admit they're looking for low hanging fruit and think they can get away with this instead of insisting that a 10% tax upfront makes in-state businesses more competitive.
In honor of the memory of Cpl. Michael E. Thompson
Sounds like a tariff.
Knowledge is the enemy of fear
Didn't Washington State make hallucinogenic mushrooms legal? Maybe that explains why they think taxing PM dealers will make them more competitive.
I knew it would happen.
Looks like the tax also will be applied to "monetized bullion", which the state defines as coins or other forms of money manufactured from gold, silver, or other metals and heretofore, now, or hereafter used as a medium of exchange under the laws of this state, the United States, or any foreign nation.
So if a gold sovereign, for example, was used as money in Britain in 1840, that coin also will be taxed if purchased from a dealer in Washington. Sound like a correct interpretation?
Honestly it doesn't matter - if it isn't monetized bullion it is just bullion. Both are subject to retail sales tax. Buy a 1964 Kennedy for you album - pay retail sales tax. Buy a 1965 - purchase it tax free (unless it is 40%).
If this isn't flipped, no coin store in Vancouver or Spokane will be in business in a year. The Seattle coin shows will be ghost towns. However Washington needs money and they need it quick, so short term gain for long term pain
Reminds me of that stunt Minnesota pulled a few years ago. Major dealers quit shipping to MN residents because of it.
I was thinking of Minnesota, as well, and how hard it was for folks to drag that through court.
In honor of the memory of Cpl. Michael E. Thompson
unfathomable reasoning
No PM taxes over here in The Commonwealth. Other than the dealer's "premium" tax. RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
Retiring at 55, what day is today?
silver proof sets? how does one figure the tax there all or not nothing seems like
That sucks. My daughter lives in Washington and I planned all along to leave her my gold coins.
this sounds like just a sales tax
Nope. It's WA State...it's all about taxes here. Just plain ol' simple TAX EVERYTHING taxes.
I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment
It's because most of the elected, law making, individuals don't understand business. They have pet projects and want to fund them, but no accountability of the funds after they are taxed.
As for businesses...many have been taxed out of existence in certain WA cities (seattle, for example) and others have been moving out of state due to taxing policies happening.
The state's "leaders" truly do not understand business at all
I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment
well, just leave them all to me. I don't live there, and I'll keep them safe and sound!
Not sure an estate gift would be taxable. But I am not a laywer or estate expert.
For a 30% clip on a silver quarter does one only pay the tax on the remaining 70% of silver as bullion?😆
Washington also has a very aggressive Estate tax (and capital gains tax).
My guess is a thriving black-market in gold will develop. Dealers will pay well back of spot, as they have to sell to wholesalers and will have the shipping/insurance costs to cover. She might do well selling private party as undercutting registered sellers by 10% will ensure at least spot
Washington State lawmakers are morons ... been that way for years. Short sighted to say the least.
Oregon coin dealers will be making an absolute killing.
Dave
One of the worst case scenarios for me would be, when my son moves to FL for his job next year, to use his address as needed.
I won't give much of anything to our corrupt lawmakers and their overtaxation in WA
I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment
Tax break today.
``https://ebay.us/m/KxolR5
STACK IT UP!
COPPER is gutter !
Another one bites the dust.
An income tax and I believe the plan now is to pass legislation to tax the people that are leaving...
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to clarify, this is a tax paid by the the Washington state resident when purchasing PMs regardless of the location of the seller?
Many states charge a sales tax to their residents when purchasing PMs, regardless of location of seller. Ebay began applying this sales tax a while back, but only to buyers with an account address in a state that required the payment of the tax.
When gold and silver move together, it signals the coming end of fiat money.
If the seller has nexus in WA (sales of $100,000 or more in a calendar year) then the seller is obligated to collect the retail sales tax - and pay Retailing B&O tax on the gross sale (currently .5%). The sales tax is a bother - but having to pay half a percent of your gross as a seller makes it unprofitable. A couple of sellers are no longer selling into WA due to the B&O.
How does this affect a Washington resident who orders PMs online?
When gold and silver move together, it signals the coming end of fiat money.
Unless they find a seller who hasn't registered yet, they will pay retail sales tax on their order. They will also have fewer choices and my guess is higher prices as the seller wants to cover the extra cost of their sale.
Does this tax apply to a Washington State resident who goes to a coin show in an adjoining state and buys some gold using cash in a face-to-face transaction?
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
Well - technically the Washington resident is legally required to complete a Consumer Use Tax form upon returning to Washington and self-remit the tax to the State Department of Revenue. Need a link to the form?