Coin and Bullion Sales Tax

Is tax on Silver and Coins charged across the board? I just don't remember getting taxed by anyone but Heritage. I don't have money to invest, but if one is going to buy $1000.00 worth of silver then you need a 10% move in price just to recoup your tax bill.


Ruben

 

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It is different between states. In CA a local dealer will charge you ST unless you buy 1500 worth of bullion or more.

I do not know if this rule applies to numismatics or not.

 

Well if your buying boxes of ASE rounds, are those an investment or a Nuismatic purchase?

 

that would 100% be a bullion purchase. So would most silver/ gold coins.

However I am just not sure about say a quarter that costs 2000 bucks. I do not know if it would still fall under the no tax protection.



Keep in mind this is only for CA. I know for a fact different states have different laws. Many just have a no tax on coins or bullion law period.

 

I bought 25 ASEs today from Provident when Silver was under $30/oz. spot. No sales tax, but $11.95 shipping.

 

Why wouldn't it? It's a coin, and the purchase is more that $1500. The seller still has to pay income tax, so the state still gets their cut.

Anyway, for online items if the company you're buying from has a physical presence in your state, then you pay the state sales tax AND the local sales tax of the company's physical location in your state. I used to work for a fairly widespread retail chain, and we had a list of the company's physical locations with the lowest sales tax for each state for phone orders.

If the company doesn't have a presence in your state, the company shouldn't charge a sales tax, but you may have to pay a "use" tax on your own, depending on your state's laws. Here's an article about it: http://www.nolo.com/legal-encyclopedia/sales-tax-internet-29919.html

 

How can Provident not charge tax and APMEX do so

 

It depends on if their business is in the same state as you.

 

APMEX is in Oklahoma. Heritage is in Texas. Who knows where Provident is. How about directly buying from the Perth mint?

 

APMEX

Is gold, silver, platinum or palladium taxable?

APMEX does not collect any tax when your order is shipped outside the states of Oklahoma and New York. You should consult your tax advisor for specific taxation advice in your jurisdiction. State taxes may be applicable.

 

Provident is in Texas and they charge sales tax on sales to Texas residents if the total purchase is less than $1,000.

http://www.providentmetals.com/faq.html#tax-on-orders

Here's a link to the Texas rule on sales tax on bullion, currency, and numismatic coins:

http://info.sos.state.tx.us/pls/pub...c=&p_ploc=&pg=1&p_tac=&ti=34&pt=1&ch=3&rl=336

Interesting tidbit I learned there, "The face value of United States coins and currency must be subtracted from the sales price before the tax is computed." on purchases under $1,000

 

I'm guessing it was written in this way - exempting the face value from sales tax - so the act of providing change wouldn't technically create a sales taxable transaction.

 

In Illinois there is no sales tax on any coin or bullion purchases of any amount. I don't know about buying from online companies.