Taxes on coins in California?

I can't remember where I heard this, but someone told me coins over 1000 dollars are only taxable on the first 1000 dollars in CA. Does anyone know if this is true or not?

 

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The one time I spent over $1k at a local shop they waived sales tax and mumbled something inconclusive - I wasn't sure if they were just being nice or if it was the law. I've seen it mentioned in the fee pages from some of the auction houses, like Heritage

http://www.heritageauctions.com/common/auction/salesTax.php

But you got me curious, so I looked up the sales tax rules from the Board of Equalization -

http://www.boe.ca.gov/pdf/pub61.pdf

• MONETIZED AND NONMONETIZED BULLION AND NUMISMATIC COINS — Sales in bulk (market
value of $1,000 or more, subject to adjustment based on inflation) of monetized bullion, nonmonetized
gold or silver bullion, and numismatic coins are exempt from tax when those sales are substantially
equivalent to transactions in securities or commodities.

It's a good excuse to make some big purchases, I guess

Scott

 

posted amended, by me.

 

So if you are purchasing coins totalling somewhere over about $875, after taxes you will be spending almost a thousand anyway, so you might as well add a couple more coins to push you over the $1000 mark because you won'tpay any more money out of pocket anyway. Basily if you spend $875 you can get a $125 coin for $50. Or if you buy $926, you can get a 75 dollar coin for free.

 

That's how I got my 1878-CC Morgan... Got it for $50 with the purchase of my 1908 No Motto Saint. :goofer:

 

Our you talking about sales tax when you buy a coin at a coin shop or on-line because if you are I think some states do not charge sales tax on coins under $1,000 . I know here in AZ when I buy a coin in a coin shop I am not charged a sales tax.

 

Coin purchases under $1,000 are taxed some places, and not others; coin purchases over $1,000 are taxed some places and not others. Sales taxation is one of the biggest examples of states rights still surviving, and in many states it varies from county to county.

 

Thanks everyone. I bought a coin over 1000 and did not have to pay any taxes.

 

As the topic for zaneman and CA specific seems to have concluded... Here in PA I have noticed that if I go to the coin dealer and buy coins or bullion pieces in any amount, I am not charged sales tax. However, if I shop around the antique shops and pick up coins, they do charge sales tax.

 

In Coin World, John Paul Sarosi, from Johnstown, PA states: "No Sales tax on Coins and Bullion in Pennsylvania"

He is a major dealer, so, he should know what he is talking about.

But, according to Roy, you have to check with legal counsel in your state, since accountants (including CPA's) are ignorant. I guess only California attorneys know anything.

 

FRANK you very much. I guess I need to read into the sales tax law and print out the bit about coins to take along to the antique shops.

 

Hmmm... from what I am able to find so far, this is a new exemption that was made effective in 2006.

[FONT=Verdana,Arial,Geneva]Investment coins and bullion
The sale of investment metal bullion and investment coins will be exempt from sales and use tax. This does not include jewelry or works of art made of coins nor commemorative medallions. This will be effective in 60 days

Thanks (franks) again.
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That isn't what Roy meant---it really isn't leagle for someone that is licensed to practice law in CA (or any state for that matter) shouldn't give advise on something when the other person lives in another state---laws change from state to state and that is why you need to ask someone in your own state.

Speedy

 

Let's get one thing clear. I said to get legal and tax advice from licensed professionals. In California, New York, and to the best of my knowledge most (if not all) other states CPAs are licensed to give tax advice.

I DID NOT say anything about CPAs being ignorant or incompetent.

 

I would NOT print out my comments, they do not mean anything to anyone, they are a citation from Sarosi's ad.
If you want to bring something along, go the state web site and print out the law citation. That is what would prove your point, not my comment.
The law is on your side, but only if you have it handy. If in doubt check with your state's Department of Taxation. Every state has one and ask for the sales tax dept. they will be glad to forward the rules on sales tax for your use.

 

:bow: :bow: :bow: :bow: :bow: :bow: "THE FRANK GROUP"

 

FRANK & ROY IT'S OK

 

What about bullion? In California?

 

I found the laws on the state website... It's something that was just instituted last year. This little bit...

"[FONT=Verdana,Arial,Geneva]Investment coins and bullion
The sale of investment metal bullion and investment coins will be exempt from sales and use tax. This does not include jewelry or works of art made of coins nor commemorative medallions. This will be effective in 60 days"

... is from the PA Dept. of Revenue site. I would surely not expect anybody to pay attention if I went in with a statement from Frank on CoinTalk. I thank you because I might not have thought so much to search it out without your input.
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