Paying sales tax on US Coin/Currency sales

Hypocritical ? Why ?

Almost all states have sales tax. Coins are sales; why wouldn't they be taxed ? Why is that hypocritical ?

BTW - Texas law exempts any numismatic sales above $1000. Many states have similar provisions.

 

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Things are going to get alot worse if S.3578 fails .

 

Without getting too far into tax codes and such, where is the line drawn? I rent a car in Pittsburgh and get charged sales tax on the rental, so am I obligated to report that and pay more on it in CA come tax time? I buy a bag of groceries in AZ and am not charged sales tax...same thing? Maybe it is time to dump something into the bay, but I opt for the IRS.
Guy

 

You are supposed to pay the difference between the other state sales tax and your home state sales tax. If the other states sales tax is more, you owe nothing to your home state. (and you dont get the difference back)

In your example, you owe no sales tax on the rental car as you did not bring the car into your home state.

You owe the sales tax on the Arizona groceries if you eat them in California.

 

Give unto Caesar what is Caesar's.

 

I thought it was "render".....

 

I am a fan of Texas and not trying to start something. They just seem like a state that stands for individual freedoms and that taxing our own currency seems wrong to me.
That's all.

 

I'd like to dump the IRS for a Flat,sale or fair tax but this would still be a problem as it is one more of the hundreds of tax's on state, county and city's books.

 

In SOME states, you may be correct. In MOST states, you are wrong. It depends entirely on your state laws. There is no general rule or law that applies to all.

 

I just think that its time to change the tax law to be changed in terms of charging tax on our own currency be it collectible or not... seems a bit silly to me to tax purchases of our own currency and coinage. This started a good discussion, glad I posted this. Continue the debate all!!!

 

Most states, if not all, have a use tax exemption on household goods and personal property purchased while a resident of another state which are moved into the state for the purpose of taking permenant residency. Also another exemption for personal property brought into the state temporarily by non-residents. These exemptions usually exclude personal property brought into the state for business purposes. If these exemptions did not exist then use tax would be due on all personal property brought into the state by new residents and all personal property brought into the state by tourist, college students and etc.

 

Since the OP dealt with coins my comment only bears on that.. I believe the number of state that charge sales tax on coins is still in the 30 to 35 state range. Some of those may have an exception above a certain set amount.

 

There was some discussion earlier that if you didn't pay sales tax when you purchased something in another state that you may be liable for use tax when returning home. But I believe the personal property exclusions would resolve that issue. However, from my interpretation of the Texas use tax laws, it does not provide for an allowance for sales tax paid in the other state. In other words, if the goods I bring in are subject to use tax, then I owe the use tax regardless of whether or not I paid sales tax in the other state.

Are coin purchases considered personal property?

 

Coins are personal property. I am surprised if Texas has that law, since most states allow you do deduct any sales tax paid to another state in determining tax liability owed to the home state. For example, if you bought it in MN and paid 7% sales tax, and took it to TX with a 6% sales tax, you wouldn't owe use tax. If Tx had an 8% sales tax, you would owe 1% difference. That is how it usually works. There is no uniform law, though, every state can do it differently, have certain exclusions, etc. You would have to know someone knowledgable about your state law, in my experience if you ask the Dept of Revenue they tell you their interpretation of the law, which is usually wrong and too severe.

 

But my comment had nothing to do with charging sales tax on in state coin sales, per se. It had to do with collecting sales tax on out of state purchases. Considering how much is collected from eBay sales. I stand by my statement.

 

I would think most ebay sellers would not collect sales tax from the buyers except in their home state. Legally they would not have nexus in another state so would be immune from that state's requirements to collect sales tax. This is precisely why use taxes were passed, to "make it fair" and not penalize in state purchases and thereby encouraging out of state purchases of its citizens.

 

Depending on the outcome of the Health Care reform Bill and the paper reduction clause , will make IRS reporting on the spot for transactions $600.00 and above , regardless of which state you reside .

 

I understand that, but what does that have to do with in state / out of state sales tax? It is still against the constitution for states to tax interstate commerce.

 

No general rule, Rlm, but the Multistate Tax compact states that this point exactly. I would say MOST States this is true, but SOME states its not. There IS a general rule, that is called the multi state compact which a large number of states have adopted, and more adopt every year to bring uniformity to state tax laws and ease compliance burdens.

 

I think you need to read that - particularly Article II, paragraph #3 and then tell me just who this applies to.