Does your local dealer charge tax?

Yep... in NJ we pay sales tax on coins, my local dealers always collects. However, coin shows are a different story... I've never paid tax on any transaction.

 

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Thanks for mentioning coin shows. Even though the dealers in Tennessee and Alabama charge sales taxes on bullion purchases at their stores (very few exceptions), I do not get charged a sales tax on any bullion purchases that are made at coin show that is located in TN or AL. I have never been charged a sales tax on bullion purchases (silver art bars) at coin shows.

 

In New York dealers are required to charge sales tax. If I buy from outside the state I am required as a New York resident (just for the honor of living here) to pay the required sales tax on my income tax return. I can assure you that if a New York dealer is not charging sales tax they have not yet had the privilege of being audited by the New York State sales tax department.

 

The latter is, by the way, what pretty much every business here in the EU does when it comes to the VAT (similar to sales tax). The price on the tag or shelf is the price that the customer pays, but the receipt will specify the tax rates.

When I buy a coin from a "remote" dealer (online, mail order), I do pay that tax too; only certain gold coins are tax exempt. At a "walk-in" store, it depends, but usually I get a receipt, and that will also list the tax. When I buy some cheap coins at a coin market in the street, a receipt would be a rare exception; what the dealer then does, tax wise, is not my business.

Christian

 

Looks like you live in New Joirsey, and they are required to collect sales tax there on taxable goods.

New York is the same; however, the coins shows here, no one collects sales tax on their sales and they may pay a percentage of their revenues from the show for the tax, not really sure.

 

nope

 

Are you sure sir? I prepared the CA return for Sales and Use tax for 6 major corporations for a few years, and I do not remember the optional aspect at all. I would respectfully disagree with this unless it has changed in the last few years. The reason this was key was in the 30's a couple of states did try to pass transaction taxes where the seller was taxed on sales, and the Supreme Court threw them out as Unconstitutional. That is why sales tax law was always written that the buyer must pay it.

 

+1

 

Here is the text from the sellers permit rights and responsibilities manual May 2010. boe.ca.gov/pdf/pub73.pdf

Who is responsible for paying sales tax to the BOE?

As a seller, you are responsible for paying the correct amount of sales tax to us. If you do not pay the correct amount, the additional tax plus applicable penalty and interest will be charged.

Can I collect sales tax from my customer?

Yes. Although you are required to pay and report sales tax to us, you may be reimbursed by your customer for the amount of tax you owe on a sale. For example, if you are required to pay $1.75 in sales tax on a sale, you may pass that cost on to your customer, provided it is agreed to as part of the sale. It is presumed that the customer agrees to pay the addition of an amount for tax if:
•
You list a separate amount for sales tax reimbursement on your receipts or invoices;
•
You post a sign on your premises stating that sales tax reimbursement will be added to all prices of taxable merchandise, or make a similar statement on price tags, advertising material, and other printed material directed to
the purchaser; or
• The sales agreement specifically calls for the addition of sales tax reimbursement.
If you include sales tax reimbursement in your prices, rather than itemizing it separately on your invoices or receipts, you must inform the buyer that tax is included. You can post this information at your premises in a location that is visible to purchasers, or you can include it on a price tag or in an advertisement, whichever is applicable. Use one of the following statements:
•
“All prices of taxable items include sales tax reimbursement computed to the nearest mill.”
•
“The price of this item includes sales tax reimbursement computed to the nearest mill.”

The Underlined are where I read that It is only required that I pay the tax and passing it to the customer is not required. I guess if I'm wrong, I'll find out my first audit.

 

I lived in SC and FL before moving to Ohio. I was under the assumption that "no sales tax on currency" was a national policy. It was a bit of a shock when I purchased what I thought to be a $160 coin from an Ohio shop and the dealer hands me a $170 sales ticket. Needless to say, I wasn't too comfortable with what I considered to be excess cost. I negotiated a price ($160) that I was barely willing to pay to begin with, and then I discovered that I had actually negotiated a higher price.

When it comes to things like coins, the price being negotiated should represent the total money that changes hands. It is unfortunate that some states charge tax, but in those cases the dealer should incorporate the tax into the price of the coins.

 

Interesting. Thanks for the post. All I can say is the last time this was before the Supreme Court they through this type of tax out as unconstitutional. Of course, that has never stopped CA before.

 

Each state's tax codes are different from one another and including tax in the retail price is really optional for the seller to do. Most people should know that the possibility does exist that sales tax can/will be added to the retail cost of their goods regardless of what those goods are, and if they reside in a state that requires sales tax on the purchase of goods and services.

It really shouldn't be a shock for sales tax to be added to the price.

 

Yea here in California we march to the beat of a different tambourine. Especially now that we have the ultimate hippy Gov.

 

Yours truly is a wondrous, spectacular, great state that the bureaucrats are doing everything they can to kill.

 

In WI where I live, there's no sale tax on coins. There is, however, one on supplies and silver bars and rounds and gold bars/rounds.

 

Yes. Both of my dealers do.

 

This site has a list by state of whichdo and do not have to charge sales tax on coins, paper money and bullion. This was accurate as of August of last year.

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

 

It's kind of shocking that here in Illinois where it seems like we have high taxes on everything, we don't have any taxes on this, and so many other states do.

 

Movie tickets and Bar drinks have tax included so I doubt it's illegal to include it.

 

Yup, New Jersey. Was in south Jersey and just moved North 10 miles outside of NYC. I figured they were supposed to collect tax on coins/currency because they did so if paying with a credit card. But my 2 previous dealers had a "cash" policy where they didn't charge me sales tax. (Even though I know they should) Was kinda nice when I was buying a lot. However, both those coin dealers I had to drive my gas guzzling truck to get there and the new dealer is in walking distance. The new dealer has more too but charges more for bullion, so I guess it all balances out in the end. Was just curious how other states were. Thanks to all to chimed in.