Has any one noticed on ebay that there are a lot of people trying to charge sales tax for coins. I think that ebay should start pulling auctions for people doing that. I think that some dishonest sellers are just trying to make a few extra dollars.
I've seen it a little bit. Don't feel too bad. In Kansas, we are one of the few states that is still taxed on coins and precious metal investments. All of our surrounding states and a few of the states surrounding them are all tax exempt. That's why coins shows in Kansas have a lower turn-out than ones in Missouri.
I have only been charged sales tax a time or two from legit dealers on ebay from my home state. Usually not. Even from home state sellers. Never from out of state sellers. I not only don`t think this is widespread, I would ask you to provide an example, as we all can check recent ebay sales with the item number or numbers in the auctions you claim this has happened.
Many states still charge sales tax on coins. Since I am from NY I am one of the unlucky ones. However, if you are buying from another state (not your own) you don't have to pay the sales tax.
Also keep in mind that you don't have to bid on auctions where the terms are unacceptable to you. Sales tax and shipping costs are part of the total price you pay. If the total is too much, just don't bid.
Unfortunately, for all money earned, you are supposed to pay tax on it. That would also go for monetary profit from e-bay. If you are going to continually realize a profit from this activity…read “business”…(Oh you can call it a hobby if you like, but the IRS will still crawl up your butt with a microscope if they like regardless of what you tell yourself.) you are still legally bound to charge sales tax. So that does not bother me too much.
In California coin sales of less than $1,000 are subject to sales tax. If a California dealer charges a purchaser with a California address sales tax, he/she is obeying the law. Where is the dishonesty in that? (Many other states also tax some or all coin sales.)
I think I been taken! I purchased a few IHCs from a dealer that was about 100 miles from my house and he figured I wouldn't be back too soon. So when I paid him he added in the California state taxes and I paid him in cash. Now that I think about it, he got the cash, put it in his pocket and I walked out with the coins & NO receipt. Yeah, right. He'll report THAT sale to the government. I feel kinda robbed. I think he just "nickle & dimed" me!! It cost me about $8 more on the $100 or so I spent. Now he'll be right in thinking I won't be back. Bruce
The interesting part is that the over 41,000 transaction is tax free. I am in NY and a while ago I asked why/how California collectors stood for this inequity. I was told to (basically) mind my own business.
Same in Texas No dishonesty; all legit. An e-bay seller is SUPPOSED to charge in-state sales tax (unless it's over $1,000 - or a state which exempts all coins sales, if there is such a thing). Since I live in Texas, I have to pay sales tax if I buy from Heritage or Teletrade (unless total sale is > $1000).
I sell on Ebay & I am required by State law to charge sales tax in every state I have a storefront in - Unfortunately . Our company also has contracts with banks in several states to sell our items & they are considered store fronts by the State.It is the law , no way around it - I agree with the other sensible members whom have commented on this thread . Either take sales tax into consideration or just dont bid- Dont get mad at the dealer- be mad at the Government.I dislike it but, hey its is just one of those things an HONEST seller has to do - Not every dealer is out to get you- I have also seen the detrament that State sales tax does to coin shows in States that do have to charge sales tax on Numismatic items . The Cincinatti show this weekend was so lame with traffic that I think the promoter will eventually move it back to Kentucky - Peolple just do not want to pay it & I personally do not blame them-
The guy at the coin shop I go to does the same thing. Books, flips etc gets put through the register but coins he adds in his head, puts the money in his pocket and gives your change back from his pocket. I was only charged tax once on ebay coins and that was with Colonial Acres...whom I shall NEVER ever do business with again even if they offer me free coins.
As far as I know sales taxes are not Federal, they are local. Every catalog I get for catalog shopping always states that there is no sales tax if your from outside their state. Ebay is the same thing. They can not charge you a sales tax if they are in Texas and you are in Illinois. That is illigal. Sales taxes are local and if paid, must be paid locally as per the states or local government stipulates. I'm sure the ones on ebay that attemt to charge sales taxes are just making a few extra BUCKS (dollars). Even here in Illinois we have state sales taxes, Chicago sales taxes, Cook county sales taxes. Oddly enough I've never had to pay a sales tax on a coin in my life YET.
I believe that you are correct that Texas cannot charge you sales tax when you buy it from Illinois. However, They can charge you Illinois tax on what you bought from Texas if they have an office in Illinois. Or if they enact a law like Oklahoma. Oklahoma is asking all internet users to declare their purchases from out of state on their income tax forms and pay their sales tax due. My guess is that you are going to see more of this in the future.
Colonial Acres is a legitimate business and must charge applicable taxes. I've bought many times from them and simply factor the tax into my bidding.
I've known some very good dealers who add everything in their head and don't charge me tax, if its in cash. Technically its illegal, but if, for example, I pay 100 dollars and the seller declares it as a $97 purchase + $3 tax, the government still gets money and I get the feeling of getting a good deal.
