Does your local dealer charge tax?

Discussion in 'Coin Chat' started by Fall Guy, Apr 23, 2012.

  1. medoraman

    medoraman Supporter! Supporter

    Actually, I have a question then about CA sales tax for you sir. If you sell something to an out of state customer, (mail it to them), do you have to charge CA sales tax?
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  3. Conder101

    Conder101 Numismatist

    If the customer is there in the store in person and pays for it you would probably have to charge the tax. If you ship it and they pay for it by mail from out of state then no. UNLESS the company has a physical presence (nexus) in the state they are sending the item to. In that case then yes CA sales tax applies. For example if you bid in last weeks Heritage auctions and you had the coins shipped to you, if you lived in CA, TX, or NY you had to pay CA, TX, or NY sales tax because Heritage has Nexus in those states. If you had it shipped to any other state you didn't. If you live in those states but bid, paid and picked up at the show in Chicago, you didn't have to pay sales tax because Illinois doesn't charge sales tax on coins.
  4. medoraman

    medoraman Supporter! Supporter

    I understand sir, but his previous post read that the tax was on the seller in CA. That is what I was getting at, if CA still requires sales tax on out of state sales without nexus in that state its a clear violation of the current supreme court ruling concerning nexus and transactional taxes violating interstate commerce clause of the Constitution.
  5. Collect89

    Collect89 Coin Collector

    (Thank you Conder101 for the Weblink)

    I believe that the Weblink provided by Conder101 is accurate for my State of Connecticut. There is no CT sales tax on coins or paper money. There is also no CT sales tax on bullion when the purchase is over $1000. There is always CT sales tax on coin supplies.

    The dealers from which I purchase seem to follow these guidelines regardless of whether I pay by cash or credit card.
  6. omahaorange

    omahaorange Active Member

    I can't speak for California, but here:

    From the PA Tax PA-40 instructions for Line 25:

    If you're selling to a PA resident, and you are based out of state without a physical presence in PA, you, the out-of-state seller, are not required nor obligated to collect and submit to PA any sales tax. As the buyer and a PA resident, I would be required to report this on my state tax return and pay the tax.
  7. Cherd

    Cherd Junior Member

    I purchased a $100 bill for $200 at a live auction last month here in Ohio, where we have tax on such things. I was charged sales tax on $200, however, on the way home it occured to me that this did not seem quite right. If I receive 5 $20's for a $100 I am not charged tax. If I receive a $100 bill for $200, then shouldn't I only be taxed on $100? It never occurred to me when buying coins, but with large bills it actally makes a difference. Any thoughts, explanations?
  8. AdamL

    AdamL Likes Silver

    Nope. No tax on them in MO.
  9. BUncirculated

    BUncirculated Well-Known Member

    You're always taxed on the retail price.
  10. Cherd

    Cherd Junior Member

    By retail, do you mean actual price minus face value? The retail price of a $1 bill is $1, are we expected to pay tax when making change for a $5?
  11. BUncirculated

    BUncirculated Well-Known Member

    By retail price I mean the price you paid for the item.

    If you went to a used car dealership and bought a used car with a blue book value of $3500, but you paid $5000, you're taxed on the $5000, not the book value.

    If you exchange a $5 bill for 5 $1 bills, that's not buying anything, you're exchanging a larger bill for smaller ones.

    It's what you paid for goods and/or services that you pay tax on.
  12. Conder101

    Conder101 Numismatist

    I think what it means is that if it is a taxable event the state of CA will collect the tax from the seller. The seller may pass it along and collect it from the customer or not, but even if he doesn't collect it from the buyer, the seller is still responsible for the tax and it comes out of his pocket. I know that is how it is here in Indiana. The state doesn't really care if I collect the tax from the customer or not as long as I report the sale and remit the proper amount of tax money to them.
  13. bigjpst

    bigjpst Well-Known Member

    No, maybe I should have worded it differently. When sales tax is applicable, the seller is responsible for paying. Condor is correct with his explanation.
  14. coleguy

    coleguy Coin Collector

  15. Raoul duke

    Raoul duke Member

    Here in washington there is no tax on bullion, pretty nice to not get taxed on something
  16. Blaubart

    Blaubart Melt Value = 4.50

    If I was a dealer, I'd have to find a way around this.

    Perhaps trading you the bill for $100, but in order to get that trade, you have to pay $100 to hear the history of that particular bill. Or $100 for the bill and $100 for the holder that it's in. Something like that. Because you're right, paying tax on $200 to buy a $100 bill is silly.

    I really like that we don't have sales tax here in MT. Until I read this thread, I never even thought about what a handicap that would put on bullion trading as an investment. There are already so many ways to lose money: On the spread, on eBay fees, on PayPal fees, on shipping, and now on sales tax too? Yikes!
  17. Duke Kavanaugh

    Duke Kavanaugh The Big Coin Hunter

    So we should make a list of Numismatic Friendly States :D
  18. dannic113

    dannic113 Member

    None of mine do here in the land of corruption..ah land of lincoln rather. Illinois sales tax site say no sales tax on any "legal tender from qualifying government's" also they passed a law on no sales tax what so ever on bullion products because pressure insisted that residents were buying over the phone and as internet came along later online to avoid the tax impossed. The new laws passed that went into effect is mostly federally based and involves bullion as an investment. When transactions are over $500 it triggers tax forms more for long and short term capital gains tax and not sales tax.
  19. 1970 Silver Art

    1970 Silver Art Silver Art Bar Collector

    In my local area of TN, the TN local dealers lose bullion sales to the dealers that are located just over the state line in Georgia since bullion buyers/investors prefer to buy in GA since there is no sales tax on bullion in GA.
  20. Collect89

    Collect89 Coin Collector

  21. coleguy

    coleguy Coin Collector

    I think they need to update the list as laws have changed, at least in Nevada, where I see they have this listed:
    They charge sales tax on everything now, like CA.
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