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<p>[QUOTE="Conder101, post: 1611537, member: 66"]I think you will find that he is responsible for remitting the sales tax to the state. He can either collect the tax from the buyer or pay it out of his profit margin. Either way the tax gets collected and paid.</p><p><br /></p><p>People in Nevada who buy stuff from out of state are supposed to pay use tax to the state on the items they purchase. If they buy something in Nevada and they don't pay the sales tax, and the seller doesn't pay it in theory they would probably be responsible for paying the tax, either as sales or Use tax, but the state would probably go after the seller because it is his responsibility to send it in to the state whether he collected it or not.</p><p><br /></p><p><br /></p><p>If the show is in a state that has a sales tax on coins they are SUPPOSED to be charging the sales tax at the show. Many dealers don't collect the tax though and don't send it in to the state. They are committing the crime of tax evasion.</p><p><br /></p><p><br /></p><p>When something is sold to some one with a valid resale license, ora non-profit, sales tax is not collected, but the sale and the re-sale license number or non-profit tax number do have to be recorded. If you claim a non-taxable sale and you are audited you have to have the tax number to go with that sale. or YOU will be required to pay the taxes on that sale. And if there is a pattern of such cases you can be charged with tax evasion. The fact that taxes are not collected at many shows where they should be collected is a matter of lax enforcement, not a case of not having to collect it. In the past there have been times of stepped up enforcement with tax collectors being present at coin shows to make sure the law is being observed. But since tax collectors tend to work Mon-Friday 8:00 - 4:00 and really don't want to have to go out and work Friday afternoon, let alone on the weekend, coin shows tend to slip under the wire.</p><p><br /></p><p>The real problem with sales tax, especially in California is nexus. If you are located in another state but say have an office in California, you are said to have a nexus or business presence there. And as such you are required to collect California Sales Tax on all items sold to residents of California and shipped there, and to remit the taxes to the state. Several years back the State tried to reduce the number of days that an out of state vender could come into California and sell without a nexus being created. They lowered it to something like four days a year. Do more than two shows a year, or one long show, and you now have a CA nexus and have to start collecting CA sales tax on all sales made in or to residents of CA. This was so disturbing that an ANA convention scheduled for CA was canceled just a few months before it was to be held and moved to another state. And it was several years before a site in CA would even be considered. (In the meantime the number of days before nexus was established was increased. I imagine CA discovered they were losing a lot of convention business and all of the other income that came from them. Instead of raising revenue the small number of days to establish nexus had actually reduced income.)[/QUOTE]</p><p><br /></p>
[QUOTE="Conder101, post: 1611537, member: 66"]I think you will find that he is responsible for remitting the sales tax to the state. He can either collect the tax from the buyer or pay it out of his profit margin. Either way the tax gets collected and paid. People in Nevada who buy stuff from out of state are supposed to pay use tax to the state on the items they purchase. If they buy something in Nevada and they don't pay the sales tax, and the seller doesn't pay it in theory they would probably be responsible for paying the tax, either as sales or Use tax, but the state would probably go after the seller because it is his responsibility to send it in to the state whether he collected it or not. If the show is in a state that has a sales tax on coins they are SUPPOSED to be charging the sales tax at the show. Many dealers don't collect the tax though and don't send it in to the state. They are committing the crime of tax evasion. When something is sold to some one with a valid resale license, ora non-profit, sales tax is not collected, but the sale and the re-sale license number or non-profit tax number do have to be recorded. If you claim a non-taxable sale and you are audited you have to have the tax number to go with that sale. or YOU will be required to pay the taxes on that sale. And if there is a pattern of such cases you can be charged with tax evasion. The fact that taxes are not collected at many shows where they should be collected is a matter of lax enforcement, not a case of not having to collect it. In the past there have been times of stepped up enforcement with tax collectors being present at coin shows to make sure the law is being observed. But since tax collectors tend to work Mon-Friday 8:00 - 4:00 and really don't want to have to go out and work Friday afternoon, let alone on the weekend, coin shows tend to slip under the wire. The real problem with sales tax, especially in California is nexus. If you are located in another state but say have an office in California, you are said to have a nexus or business presence there. And as such you are required to collect California Sales Tax on all items sold to residents of California and shipped there, and to remit the taxes to the state. Several years back the State tried to reduce the number of days that an out of state vender could come into California and sell without a nexus being created. They lowered it to something like four days a year. Do more than two shows a year, or one long show, and you now have a CA nexus and have to start collecting CA sales tax on all sales made in or to residents of CA. This was so disturbing that an ANA convention scheduled for CA was canceled just a few months before it was to be held and moved to another state. And it was several years before a site in CA would even be considered. (In the meantime the number of days before nexus was established was increased. I imagine CA discovered they were losing a lot of convention business and all of the other income that came from them. Instead of raising revenue the small number of days to establish nexus had actually reduced income.)[/QUOTE]
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