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Just got this email from JM Bullion after purchase of 1 OZ Gold Krugerrand
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<p>[QUOTE="Speedbump, post: 2767349, member: 75637"]Nevada's rule on bullion sales tax is not cut and dry. Some choose to just apply sales tax to everything that <u><i>might</i></u> fall under the taxable classification. Others will choose to interpenetrate the language differently and only apply sales tax certain things. JMB has been operating in Nevada just fine without issue for many months now (maybe a year or more? not sure). Something has happened, likely a complaint of some sort, that they need to iron out before they can continue. I cant fault them for anything at this point. They tried to offer the best option for buyers to the extent allowed by law as they understood it. Nothing wrong with that. They could have a massive back tax bill they need to pay that they don't want to add to at this time, or they don't want to collect taxes only to have to refund them later if its determined that taxes didn't apply</p><p><br /></p><p><br /></p><p><br /></p><p>The issue as I understand it from speaking with Nevada store front shops...</p><p><br /></p><p><u><span style="color: #000066"><i>NAC 372.170Coins and stamps; bullion.</i></span></u></p><p><u><span style="color: #000066"><br /></span></u></p><p><u><span style="color: #000066"><br /></span></u></p><p><u><i><span style="color: #000066"> 1. The tax applies to sales of coins or uncancelled stamps at a premium price for purposes other than use as a medium of exchange or postage. The tax does not apply to sales of coins or uncancelled stamps, even though sold at a premium price, if the purpose of the use of the coins or stamps is as a medium of exchange or postage.</span></i></u></p><p><u><span style="color: #000066"><br /></span></u></p><p><u><span style="color: #000066"><br /></span></u></p><p><u><span style="color: #000066"><i> 2. If the sales price exceeds the face value of the coins or stamps by 50 percent, they will be deemed to have value as collectors’ items and will be taxable. If the sales price does not exceed the face value of the coins or stamps by 50 percent, they will be deemed to have value solely as a medium of exchange or postage and will not be taxable. Sales of any coins not currently accepted as money and sales of cancelled stamps or stamps not currently accepted for postage are taxable.</i></span></u></p><p><u><span style="color: #000066"><br /></span></u></p><p><u><span style="color: #000066"><br /></span></u></p><p><u><span style="color: #000066"><i> 3. Sales of coins to gaming establishments at any price for use in gaming operations are not taxable, except that, sales of coins at a premium price to gaming establishments for purposes other than use as a medium of exchange are governed by subsection 2.</i></span></u></p><p><u><span style="color: #000066"><br /></span></u></p><p><u><span style="color: #000066"><br /></span></u></p><p><u><span style="color: #000066"><i> 4. The tax applies to sales of bullion at a premium price for purposes other than use as a medium of exchange. The tax does not apply to sales of bullion, even though sold at a premium price, if the purpose of the use of the bullion is as a medium of exchange.</i></span></u></p><p><br /></p><p><br /></p><p>What the law does not do is differentiate between bullion and bullion coins. Item 4 exempts bullion from sales tax, but item 2 clumps coins [in general] into a taxable category. Item 1 seems to exempt certain coins, but that exemption is negated by the 50% rule in Item 2. Some dealers have tried to use the argument that bullion coins are produced and sold as bullion and should not be taxed. The face value is superficial and has zero influence on the value of the coin (lest gold drops to below $50 and silver to below $1). However, some people, including the state, may see it differently. It gets more foggy with circulated common date silver dollars, gold eagles, and junk silver when they are sold as "bullion". This is where I think JMB is getting stuck. They have not been collecting sales tax on anything because they did not think they should have to. Someone has probably raised the question, should they be...? If they do owe taxes, they probably owe a lot at this point and will probably fight it.[/QUOTE]</p><p><br /></p>
[QUOTE="Speedbump, post: 2767349, member: 75637"]Nevada's rule on bullion sales tax is not cut and dry. Some choose to just apply sales tax to everything that [U][I]might[/I][/U] fall under the taxable classification. Others will choose to interpenetrate the language differently and only apply sales tax certain things. JMB has been operating in Nevada just fine without issue for many months now (maybe a year or more? not sure). Something has happened, likely a complaint of some sort, that they need to iron out before they can continue. I cant fault them for anything at this point. They tried to offer the best option for buyers to the extent allowed by law as they understood it. Nothing wrong with that. They could have a massive back tax bill they need to pay that they don't want to add to at this time, or they don't want to collect taxes only to have to refund them later if its determined that taxes didn't apply The issue as I understand it from speaking with Nevada store front shops... [U][COLOR=#000066][I]NAC 372.170Coins and stamps; bullion.[/I] [I][/I] [I] [/I][/COLOR] [I][COLOR=#000066] 1. The tax applies to sales of coins or uncancelled stamps at a premium price for purposes other than use as a medium of exchange or postage. The tax does not apply to sales of coins or uncancelled stamps, even though sold at a premium price, if the purpose of the use of the coins or stamps is as a medium of exchange or postage.[/COLOR][/I] [COLOR=#000066][I][/I] [I] [/I] [I] 2. If the sales price exceeds the face value of the coins or stamps by 50 percent, they will be deemed to have value as collectors’ items and will be taxable. If the sales price does not exceed the face value of the coins or stamps by 50 percent, they will be deemed to have value solely as a medium of exchange or postage and will not be taxable. Sales of any coins not currently accepted as money and sales of cancelled stamps or stamps not currently accepted for postage are taxable.[/I] [I][/I] [I] [/I] [I] 3. Sales of coins to gaming establishments at any price for use in gaming operations are not taxable, except that, sales of coins at a premium price to gaming establishments for purposes other than use as a medium of exchange are governed by subsection 2.[/I] [I][/I] [I] [/I] [I] 4. The tax applies to sales of bullion at a premium price for purposes other than use as a medium of exchange. The tax does not apply to sales of bullion, even though sold at a premium price, if the purpose of the use of the bullion is as a medium of exchange.[/I][/COLOR][/U] What the law does not do is differentiate between bullion and bullion coins. Item 4 exempts bullion from sales tax, but item 2 clumps coins [in general] into a taxable category. Item 1 seems to exempt certain coins, but that exemption is negated by the 50% rule in Item 2. Some dealers have tried to use the argument that bullion coins are produced and sold as bullion and should not be taxed. The face value is superficial and has zero influence on the value of the coin (lest gold drops to below $50 and silver to below $1). However, some people, including the state, may see it differently. It gets more foggy with circulated common date silver dollars, gold eagles, and junk silver when they are sold as "bullion". This is where I think JMB is getting stuck. They have not been collecting sales tax on anything because they did not think they should have to. Someone has probably raised the question, should they be...? If they do owe taxes, they probably owe a lot at this point and will probably fight it.[/QUOTE]
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Just got this email from JM Bullion after purchase of 1 OZ Gold Krugerrand
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