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APMEX charging out of state sales tax?
oreville
Posts: 12,349 ✭✭✭✭✭
Why does APMEX charge sales tax to NYState buyers when APMEX has no locations in NYState? It is not a requirement that APMEX charge sales tax to out of state customers unless APMEX got in trouble with OK sales rax authorities or got roped in by NYState sales tax authorities?
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Ask APMEX. They could have nexus for any number of reasons.
https://learn.apmex.com/buying-guide/buying-in-the-usa/
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It looks like they have a section that explains which items could be taxed. Here is the link for New York:
https://learn.apmex.com/buying-guide/buying-in-the-usa/new-york-bullion-sales-taxes/
I think the relevant information is on my post as to the "why".
NY extended nexus to any seller who does over $500k in annual sales.
That has, by the way, become more common with states post-Wayfair. I need a Guam mailing address. 🤣
All comments reflect the opinion of the author, even when irrefutably accurate.
Ebay and a few others do it automatically on purchases. As stated above it started with the warfair case
Ebay is a different section of the law as applied to "marketplaces". That was the original Wayfair ruling. The large out-of-state sellers is a different determination of nexus. And, of course, my home state of NY got into the act. We never let a taxing opportunity go by.
I'd like to know how easy it is for them to determine this, by the way. Do they routinely audit companies?
All comments reflect the opinion of the author, even when irrefutably accurate.
Not that I like paying taxes any more than the next person, but I think this is a good thing.
It used to be the case that Amazon paid little to no local sales taxes. This put local shops at a disadvantage, who had to charge sales taxes on identical products. Plus, even though Amazon might have had no presence in my community, their delivery operations still put wear and tear on local roads and infrastructure. There’s no reason they should get a free ride on that.
My two cents.
South Dakota v. Wayfair, Inc. is 585 U.S. 162 (2018) allowed it, where it was previously a physical nexus standard, this case overruled that and provided basic guidance.
Of course, if your state has a tax on bullion or numismatic coins and the seller does not collect and remit, you legally are obliged to report it and pay the sales tax, which I'm sure is a widespread practice.
If you are a dealer, send them your reseller certificate and it will not be an issue.
Wayfair. Freudian slip?
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
Im sure its all up and up as well 😉
APMEX doesn't charge sales tax, the states do. APMEX merely collects it. If they sell a taxable item to someone in a state that has ST then they are obliged to collect it for them. Options are don't buy taxable items or buy from sources likely to forget to collect it. As stated above you are obligated to report and pay the tax if the other party doesn't collect it.
I am fully aware of the regulation as you just stated.
Until recently, I was not even aware that Apmex sold PCGS/CAC slabbed coins. Certainly, i am sure APMEX sells mostly bullion priced gold and other precious metals which has been considered non taxable in New York State although NYState has been desiring to change such rules. So based on the past, it appears Apmex has sold less than 100 taxable items to NYState during each of the previous calendar years unless I am mistaken.
Furthermore, i have seen many out of state vendors supposedly collecting sales tax on behalf of New York State but failing to remit such sales tax to New York State, EVER and getting away with it!!!
I'm not sure where you're getting that number. Apmex needs to charge sales tax in rascals items if they have gross sales of over $500k in NY, regardless of whether the sales are taxable. So if they sold $500k in bullion, even if the bullion was not taxable, they are still required to charge tax on items that are taxable.
Bullion sales of under $1000 are taxable in NY.
All comments reflect the opinion of the author, even when irrefutably accurate.