Teletrade and CA State sales tax

relayer · April 11, 2005 4:56AM

I was bidding on Teletrade last night and got snipped at the last minute on one coin.

That brought my total to $850 + $85 in fees for a total of $935, which unfortuantely kept my total under $1,000. (Coin sales of $1000+ are not taxable in California)

So I called and asked if they could combine the invoice from last night with Wed's auction so my purchases would total $1,000 and be exempt from sales tax.

They said no

Getting no where, I asked about their return policy ($5 + 5%) and buyers fees are not refundable

They suggested getting a re-sale certificate from the State, but I said "if the coins weren't for resale wouldn't that be illegal?". She didn't answer.

flaminio · April 11, 2005 5:12AM

I had a similar thing happen at Heritage. I won a coin for $977.50. The tax on that was $81.47, so my total was $1058.97. I emailed them and said (paraphrasing) "Tell ya what -- just up my bid to $1001. More money for you, less for me. It's a win-win."

No can do, they replied. Bummer

.

relayer · April 11, 2005 5:23AM

I called the State BOE and asked them.

Regulation 1599 (A) says "A sale in bulk occurs if the total market value of ... numismatic coins sold in a single transaction is $1,000 or more ... is exempt."

They said if I made a single payment (for 2 auctions) they would consider that a bulk sale IF Teletrade can change their accounting practice to handle it that way.

CarlWohlforth · April 11, 2005 5:28AM

I do wish the auction houses would let you bump your winning bid by the few bucks needed to get your total to 1 grand!

Eventually I got the Sellers Permit, but I do resell the coins now. I also collect sales tax from those sales (if they are under a grand and to a Californian) and pay the State. I also fill out more forms!!!!

ziggy29 · April 11, 2005 6:05AM

Maybe these auction firms think it's more trouble than it's worth. As far as I know, as long as everything is invoiced together (and they don't *have* to be sold together to be invoiced together), you can legally combine purchases to get over $1,000.

That's why I don't like bidding for items close to $1,000 when sales tax is going to be an issue (Texas state tax treatment for coins is identical to CA law -- $1,000+ on one invoice is exempt). I feel screwed if I win a $900 item, pay $980, and realize that I could have effectively went after a $100 item for another $20 out of pocket.

Even outside of auctions, when I buy from a Texas seller collecting tax, if I buy a $700 coin I make sure I can find another $300 coin as well.

K6AZ · April 11, 2005 7:21AM

You guys ought to try buying coins here. There is no exemption.

swhuck · April 12, 2005 6:44AM

I wanted to post here as a long time collector and as a Heritage employee to acknowledge that we are aware that the sales tax laws can be inconvenient at the least, particularly in amounts near $1,000. Unfortunately, Heritage is bound by the tax laws of the states in which we do business, and it would be committing a crime to change a bid or combine invoices after the fact in order to help a customer avoid a lawful tax.

Longacre · April 12, 2005 6:46AM

<< <i>I wanted to post here as a long time collector and as a Heritage employee to acknowledge that we are aware that the sales tax laws can be inconvenient at the least, particularly in amounts near $1,000. Unfortunately, Heritage is bound by the tax laws of the states in which we do business, and it would be committing a crime to change a bid or combine invoices after the fact in order to help a customer avoid a lawful tax. >>

Well said.

relayer · April 12, 2005 8:16AM

<< <i>combine invoices after the fact >>

I was going to challange that with Teletrade by buying a coin in their next auction and then making one payment.

The State Board of Equalization said if I did that and sent them the paper work, they would issue a written ruling on if it qualified as a single bulk sale transaction.

But I'm mad at Teletrade now so I'm not buying anymore from them now and already paid the invoice.

But I think this would be a good thing to do - combine two auctions with one payment totaling $1,000+ and send a copy of the invoices and the payment receipt to the BOE and let them issue a ruling if it is tax exempt or not.

stman · April 12, 2005 8:43AM

<< <i>I was bidding on Teletrade last night and got snipped at the last minute on one coin. >>

Perhaps if you had not been so cheap and bid higher on this coin you wouldn't have this thread going?

relayer · April 12, 2005 9:11AM

<< <i>Perhaps if you had not been so cheap and bid higher on this coin you wouldn't have this thread going? >>

True, it would have been the best $5 I ever spent.

But I wasn't being cheap - I was being frugal. Cheap is only used in reference to people bidding on my coins.

RedneckHB · April 12, 2005 9:14AM

I have to pay sales tax regardless because Teletrade has operations in NY. 8.25%. That doesnt make my bids very competetive.

topstuf · April 12, 2005 9:19AM

There's always adding more ITEMS. Couple of tenth eagles should do it.

Teletrade and CA State sales tax

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