Sales tax on Mass. coin sales?
drfish
Posts: 939 ✭✭✭✭
I purchased a collectible /bullion coin on line from a Mass dealer and at check out was charged sales tax of ~ 6.5%.I live out of state and the coin was a little over $600.Since I'm out of state shouldn't I be exempt?If the sale is over $1000 it should also be exempt (from what i found on-line) does that mean the invoice total or each coin has to be over $1000? I called the dealer and they're sticking to the tax charge at this point Thanks for the help
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Comments
I firmly believe in numismatics as the world's greatest hobby, but recognize that this is a luxury and without collectors, we can all spend/melt our collections/inventories.
eBaystore
<< <i>I'd cancel the order. >>
<< <i>I'd cancel the order. >>
Agree. Return the coin for a full refund.
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
The offical point of sale is your home address, not his/her storefront in Mass.
The name is LEE!
roadrunner
It is likely he isn't reporting it to them.....
And, I, like others, would cancel the order. If it's bullion, it is super easily replaceable.
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
he shouldn't charge for MA taxes.
My company has stores in FL, NC, WI, AZ, TX, NV, and Costa Rica.
If we ship to any of these states [ or country ] - I have to charge
their local sales tax.
Seeing as though you placed two orders for over 1K - they should
combine both orders - and automatically refund the 6.5% tax.
If they don't - cancel your order.
~~~~~~~~~~~~
Coin collecting is not a hobby, it's an obsession !
New Barber Purchases
<< <i>6.5% additional profit going into the dealer's pockets.
roadrunner >>
Agree. You got to wonder how much of the sales tax collected by small B&M and flea market dealers goes to the state.
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
<< <i>
<< <i>6.5% additional profit going into the dealer's pockets.
roadrunner >>
Agree. You got to wonder how much of the sales tax collected by small B&M and flea market dealers goes to the state. >>
I used to be a Massachusetts dealer, and one could ask that quesition. BUT if you are the unlucky dealer who gets audited and they find something, get ready for a world of hurt. The state guys will got the IRS, and before you know it, your life can turn into a living hell. I know of one small B&M store in Mass. that got into that bind, and that guy's life was the pits for several years.
And yes so far as I know the $1,000 total invoice rule is still in effect in Mass. If you spend over a grand on one invoice, it is exempt from sales tax.
Actually, the dealer is in very hot water if he does this. The vendor is acting as the agent of the Sales Tax Authorities in the collection and remission of such taxes. Even if the tax is erroneously charged, he is required by law to submit it.
The vendor is probably lazy and is charging sales tax on all sales under the specified amount under Mass. law to reduce his chances of a sales tax audit. Sales tax audits are by far the most time consuming of tax audits; if all sales under the $X amount are treated as taxable, he's much less likely to be looking at an audit down the road.
MFH - A vendor can be required to charge state sales tax even though he has no physical presence in a particular state if state sales tax authorities take the position that said vendor does a substantial amount of business in said particular state. A good example of this is Heritage. Before they acquired the old Superior Coin facilities in Beverly Hills, they were still required to charge CA sales tax on purchases below a certain amount, just like coin dealers domiciled in CA.
"Seu cabra da peste,
"Sou Mangueira......."
<< <i>I live in Mass. and when I purchased a 2006 $50 Buffalo the first year they came out for $683, the shop had me buy some other coins to get over $1000 so that I wouldn't have to pay sales tax. I don't know if the law has changed since then. >>
Having to collect that pesky state sales taxes hurts a a business that depends upon a customer's discretionary income so I'm sure that they are more than happy to help you find a way around it. Also if you are going to spend the extra $$$, it might as well be for a coin.
HE>I