Sales tax

I was visiting the in-laws in New York a couple months ago and visited an antique mall. I found a couple uncirculated common date silver dollars and was checking out when.... sales tax!
I got in a verbal argument with the guy about how he shouldn’t be charging sales tax on currency, blah, blah. Looked up the state law for New York and sure enough, he was right! D’oh!
Sales tax is not charged on currency in my state so it obviously caught me off guard. Lesson learned. Is sales tax charged on coins in your state?

 

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Wasn't sure either if it was allowed in NY. So I'm guessing its their choice if they want to. Do have to say though, I haven't been to a store that charges sales tax in NY. The dealers I know usually gives discounts instead. From what they tell me is that the only time they charge tax is if the purchase is done through credit card. Guessing its due to either the card company charging them or they have to report the sale through state tax.

 

That depends....yes in a store setting , no most of the time at a coin show....

 

Coins are not taxable, but currency is (on the amount over face value).

Is there logic here I’m missing?

 

Coin shops here in NY do, but only if you use a credit card

 

Well, I've always charged KY sales tax to my KY residents on ebay, so I sure hope I've been doing it right, lol.

 

Oddly enough, I was paying cash

 

Well let's put it this way. If you have charged sales tax you have submitted it to the state revenue collector. If he has accepted it on sales which were not due it then he is in the wrong. The state should not be doing that. The state is always right, of course, so you must be right as well.

 

I have no idea if this is accurate or up-to-date (and all the other legal disclaimers ), but this may be helpful.

https://thecoinologist.com/sales-tax-state-by-state-breakdown/

 

This is helpful, thanks!

 

The method of payment has no bearing on whether something is taxable or not.

 

Coins and bullion were taxable here in NC up through this past summer. Now, they're fully exempt (no minimum or maximum thresholds). Of course, you still need to pay taxes on any gains you make should you then resell them at a profit.

 

Charging tax is never a choice. The only choice they're making is whether or not they're following the rules.

 

That sounds like a choice to me.

 

Yep, anyone can choose to cheat.

 

My state does not charge sales tax on coins...or anything else.

 

Kentucky still charge sales tax. Indiana got rid of it in July of 2016, but foreign coins and currency is still taxable. And gold coins that aren't US but less than .999 fine are taxable. Foreign bullion isn't taxable if the fineness is high enough that it would be legal in an IRA so .999 fine. Lower fineness coins, like say British Sovereigns, are taxable.

 

Right, because why impose a simple rule?

 

So, if a state charges sales tax on coins and currency, do you have to pay sales tax to cash a check at the bank?

 

Generally people cash a check for the amount on a check. Generally people do not pay face value for coins or currency that are considered collectibles.