So a few weeks ago I register with JM Bullion as a Military Account in order to get the Military Discount. I live in California. Before hand, I was buying at their regular price. Today I log on to buy a simple Roll of ASEs. I find out that JM Bullion is now 'collecting' California Sales Tax as they say they are 'required' to do so. This increases my purchasing cost by over $30 for simple roll of ASEs. I can avoid the tax by purchasing at least $1500 worth of metals. That is the same policy as going to a local coin store in CA. Therefore, there is no benefit to me even with the Military discount to buy from JM Bullion unless I purchase over $1500 because other sites such as SD Bullion or Provident have not yet started to collect CA sales tax. Does anyone know if this is going to become standard no matter where the company is located? This might make the LCS a better option in the future.
The Supreme Court ruled that states can require the charging of sales tax, even if the seller does not have a brick and mortar in the state. Some companies have vowed to fight this, but with revenue (aka tax) shortfalls and ever growing underfunded pension liabilities, etc..., I can see this becoming the norm. Residents of states without a sales tax, like NH, luck out.
That's a California matter. Bullion should never be subject to sales tax. Taxing bullion is a unfair policy since no other form of investment has a sales tax. Bullion is now taxed upfront with a sales tax and at the end with a capital gains tax. It's completely unfair and discriminatory. But, this is a matter for California residents to fight. JMBullion is simply following the law after the Wayfair decision. If California exempts bullion from sales tax when the value of a single transaction is at least $1500, then wait to purchase $1500 at a time. Simple as that. I believe that's a somewhat logical piece of California's law to treat $1500+ purchases as nontaxable. Essentially it implies that a person spending that amount of money must be doing so to invest rather than collect. At least the law isn't 100% crazy.
Just get a relative from out of state to make the purchase for you If not still allot of dealers that arent, and why isnt the law affecting Other companies ?
Amazon deals with all of the states, and collects the St. tax for all except the 5 states with no state tax. Jim
Whining here does little to no good. Contact your California legislators and ask them to change the law.
This happened to me earlier this month. Apparently April 1st was the official date that out of state dealers were required to collect sales tax from California residents on behalf of California. I did find an online dealer that I’m assuming wasn’t set up to collect taxes yet so didn’t have to pay. http://blog.greysheet.com/coin-dealers-brace-as-states-begin-implementing-sales-tax-collections/
Well, at a minimum, keep a record of the tax paid. It will be included in your basis when you go to sell. For those getting all mad at the sellers, remember you were technically supposed to be sending in your use tax if bullion is taxable in your state anyway. It is not the seller's fault, its your state. Get pissed at them.
Many states tax all such products from the 1st dollar https://www.jmbullion.com/tax/ Oddly enough many include copper and other metals in the form, that some might qualify as numismatic coins, including copper. I personally think that if a person can't save up or utilize income to make a one time $1500 -$2000 purchase ever year or so, they are already stretched too thin to be involved in it as an investor. Most experienced collectors understand the risks and only invest what they can afford to lose. Too many YooTubbies believe all of the " -censored-" the bullion sponsored conspiracy newsletters throw up for consideration, which we know far too many see as a holy directive. IMO Jim