Paying sales tax on US Coin/Currency sales

wow I thought I knew something about this stuff but now your telling me that everybody that moves from one of the many states that don't have these tax's (sales on coins or use tax's) moves to a state that does is to buck up tons of money for all their stuff...ie Sales tax on their entire collection of coins and Use tax on their entire physical property?
That's insane.

What is the Use Tax % in CA and the Sales Tax % on Coins there?

 

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I don't know. I spend most of my money out of state. Seeing as Nevada and Arizona are both withing 3 miles of my house, I'd rather shop where things are half the price.
Guy

 

I think CA is 8 or 8 1/2% but there is an excemption for coins if the amount is over a certan amount. It used to be $1000, but it went up last year. I believe now it is either $1,250 or $1,500. (Typically Use tax and sales tax are the same amount.)

 

I purchased a coin in an Aurora CO coin shop and had to pay sales tax. Another shop a couple of miles away, not in Aurora but I'm not from the area so I can't tell you what community, I did not have to pay sales tax. I asked about it and the dealer said that most of the Denver area has to charge sales tax but that he didn't need to at his location. So there may be more in play than just what state you are in. Either that or some shady stuff is going on around Denver.

 

Or he was a smaller shop that just doesn't/hasn't been caught so he does what he has always done.
Or he puts the tax in the price as a total like a bar does with drinks.

 

So if the exemption is say $1,500 then if you move there with a large collection you would not have to pay the use tax. That makes it back to no big deal as less then $1,500 would not be much to pay and if you have less then that they probably are not looking to bust you in the first place.

 

Lets just throw the freakin' tea in the harbor.......

 

If so this time the Tea should be thrown in San Francisco's Bay and not Boston's I'd think. loll

 

Whether or not you get charged sales tax depends on state, county and municipal laws of the area in which you reside and whether the company you are dealing with has residence in your state, county, or municipality. If they are truly in Colorado and have no affiliation in Texas (your state), it is against the constitution for them to charge you tax. They would be interfering with interstate commerce. However, if they have a portapoddy in your state, you pay the tax. Also, some states try to tax you on your out of state purchases, but that is YOUR state collecting the tax, not the state you are buying from. Just as an example, look at Heritage. They charge sales tax for Texas, California, and New York because they have business there and in several other states on some occasions. See http://coins.ha.com/c/ref/sales-tax.zx

 

To clarify just a bit ... I was actually in the shops in Colorado making the purchases. Unless you're suggesting that I should have shown them my driver's license to prove I was from Texas and get out of paying sales tax

 

Your from Texas. They charge tax's for coins too so yours to pay the tax's either way if your doing it the right way.

 

BTW it's always surprised me that Texas charges sales tax on coins as from what they "stand for" it seems hypocritical to me.

 

That is not interstate commerce then. That is absolutely taxable. I do not know what you bought, but had you had them mail it to you home, that is not taxable in Colorado.

 

Yeah, many auction firms will mail you your purchases even if you are there to avoid sales taxes being charged to you. Again, based upon your home state you are supposed to pay use taxes, but of course most never do.

 

People at the shop here always say something about sales tax and ask me if they have to pay it. My answer is "I have to pay it so I have to charge it"

 

You say that as though ALL states have the right/law to collect sales tax on out of state purchases. The last I heard (a while ago) they are few and far between. I happen to live in one, but their collection attempts are feeble at best. In lieu of calculating it, I pay ~$30 on my state income tax form

 

Yes, that's why I placed a smiley at the end of the sentence.

 

Well all states have the constitutional right to pass a law to do so, though some do not. You are the citizen of that state, they can tax you how they wish. The states cannot require non citizens to have to charge and collect their tax though, unless that entity has nexus with that state. I can guarantee you there has been collection activities in the art area, with certain states subpoenaing auction records and then auditing individuals who did not pay use taxes.

I am just the messenger and telling everyone that most states have technically had these laws on the books a long time, but are stepping up enforcement because they are desperate.

 

What drives me nuts is people think and feel that you the store is charging it but it's not you it's the government charging it. They just use you to be the tax collector, then you get the grief and get to do it for free...isn't that nice.

 

If the sale is interstate commerce, tax is forbidden by the Constitution. If the seller is in the same state as the buyer, then state laws apply; most states have state sales tax, but not all.