Kentucky to Eliminate Sales Tax on Precious Metals

Discussion in 'Bullion Investing' started by Joshua Lemons, Apr 13, 2024.

  1. Joshua Lemons

    Joshua Lemons Well-Known Member Supporter

    Looks as though my home state is eliminating the sales tax on bullion. From what I read it also includes coins and paper money.

    The bill was first introduced alone then integrated into another. The governor tried to line item veto the proposal, but the veto wasn't valid as they can only be done in certain bills. The bill including the elimination of the sales tax for precious metals was not one of those bills.

    The governor could try and challenge, but with majority support in the state legislature and grass roots campaigns, it's unlikely to be successful.
     
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  3. The Half Dime

    The Half Dime Arrows!

    I remember that this was one of the main discussions at one of my coin club meetings. I live about 35 miles north of Louisville, and it's quite crappy that they still charge tax. That's why I haven't been to the coin shops in Louisville, to be honest. Hopefully it's one step closer to no tax on coins, period.
     
    rte and Joshua Lemons like this.
  4. NOS

    NOS Former Coin Hoarder

    You just have to quietly go in and ask if you pay in cash if sales tax will be waived. Some shops are strict and fearful of the IRS/state tax board/dept. of revenue while others are like, "Sure. No problem."
     
  5. -jeffB

    -jeffB Greshams LEO Supporter

    It's the same way here in NC. Good for me, obviously, but I'm still not sure why my hobby deserves a carve-out more than any other.
     
  6. Collecting Nut

    Collecting Nut Borderline Hoarder

    Congratulations!! All states should not have sales tax on coins, bullion or food.
     
    rte likes this.
  7. Joshua Lemons

    Joshua Lemons Well-Known Member Supporter

    Luckily, as far as I can remember, food hasn't been taxed, only fast food, sodas, candy, etc. are.
     
  8. -jeffB

    -jeffB Greshams LEO Supporter

    Heh. Here, food is still taxed at 2%.

    I remember short trips from my in-laws to Alabama, where gas taxes were super-low, but ALL groceries were taxed at 10%. I guess if your kids were hungry you were supposed to take them for a drive to distract them.
     
    Joshua Lemons likes this.
  9. imrich

    imrich Supporter! Supporter

    You wouldn't want to try that in Minnesota, possibly being charged with a tax evasion Gross-Misdemeanor, legally requiring a report.

    Even before we had a bullion sales tax law, I lost my prepaid funds for silver dime full-bags of coins when officers confiscated complete inventory of 2 precious metal firms.

    2 Bankruptcies!
     
    GoldFinger1969 likes this.
  10. mpcusa

    mpcusa "Official C.T. TROLL SWEEPER"

    What they really need to do is make this nation wide including online sites and dealers including PayPal, we have no tax
    here in Nevada so that’s a good thing :)
     
    GoldFinger1969 and Joshua Lemons like this.
  11. Croatian Coin Collector

    Croatian Coin Collector Supporter! Supporter

    That is state tax, what is the situation like on the federal level? For example, if somebody in the USA wins a coin worth 1000 USD at a coin auction in Germany, does that person have to pay any taxes to the federal government on it?
     
    -jeffB likes this.
  12. -jeffB

    -jeffB Greshams LEO Supporter

    We do not. All sales taxes in the US are at state and local levels; there's no federal sales tax, although various political figures propose one from time to time (to replace other existing tax streams).
     
  13. Croatian Coin Collector

    Croatian Coin Collector Supporter! Supporter

    Nice:), here in Croatia the situation is beyond criminal, on coins imported from outside of the EU they charge you 25% VAT + the shipping company that does the customs paperwork (and by "doing customs paperwork" I mean they send you a Word document to fill out and sign, and then you send that filled out and signed document + the invoice back to them, then they send you the amount that needs to get payed, and then after you have payed it you have to send them the proof of payment PDF from your bank, and then they send it all to the moochers at customs, after which your coin is released for delivery (which in the case of the government-owned Croatia Post might not happen for several working days)) charges you 30 something or 40 something USD for that "service", the only exceptions to this are coins designated by the EU as "investment gold", so the gold 10 USD American Eagle coin for example is exempt from VAT.
     
    -jeffB likes this.
  14. -jeffB

    -jeffB Greshams LEO Supporter

    Wow, just when I think I might be starting to understand the idea of VAT...

    It's supposed to be a tax paid at each stage of production based on the value added to a product in that stage, right? So, basically a tax on profit at each stage, credited back when the product is sold onward. But the entire VAT is due when the item is sold for "final consumption".

    So... what does it mean to "consume" a collectable coin? :rolleyes: Can you claw back the VAT you paid if you sell the coin back to a dealer, then, or on to another collector?

    Here in the US, we generally pay somewhere in the range of 5%-10% sales tax on the total value of a purchase. Non-local (interstate or international mail-order/Internet shopping) is taxed at the time of sale now; not long ago, it wasn't, with most states requiring people to report the amount they spent on mail-order/Internet shopping and pay sales tax ("use tax") on it. You can imagine how low the level of compliance was under that policy. So, now it's enforced at time of sale, imposing great expense on sellers who need to compute effective sales tax for every state, city, county, or other tax-levying jurisdiction in the entire country. In practice, sellers engage a service that takes care of that calculation, "for a reasonable fee".

    Our effective tax rate is lower than yours. On the other hand, we pay thousands to tens of thousands of dollars a year for "medical insurance", partly subsidized by our employer if we're lucky enough to have one, and can still be bankrupted by medical expenses from a single auto accident (and you know how we love our automobiles). Which is better? Depends on how many coins you buy, and how many accidents you're involved in, I suppose...
     
  15. Croatian Coin Collector

    Croatian Coin Collector Supporter! Supporter

    While there are different rates and in rare cases exemptions, yes, in the majority of cases VAT will be applied several times during the same process.

    No, you can't get the VAT back when you sell it on.

    In Croatia for quite some time now we have had fiscal memory devices in place, which immediately through the internet send all of the information (including the personal identification number (I guess the American equivalent would be the social security number) of the cashier) to our version of the IRS.

    In Croatia employers must pay contributions towards basic state health insurance and basic accident insurance (16,5% on the gross salary, so-called “gross II salary” or total cost for the employer).

    Yes, the insane legal, medical, etc. fees in the USA are amongst the top reasons why I would never move there.
     
  16. Croatian Coin Collector

    Croatian Coin Collector Supporter! Supporter

    In any case, after my bids at non-EU auctions are sorted out one way or the other over the next month or so, I only plan to take part in EU coin auctions + the SINCONA ones in Switzerland (since for EU customers they move the coins to their subsidiary in Germany, and then ship them to the EU customers from there), and I will think long and hard about directly purchasing coins that cost more than a few hundred EUR from sellers outside of the EU, because I am beyond tired of getting fleeced by the communist moochers at customs here.
     
  17. mpcusa

    mpcusa "Official C.T. TROLL SWEEPER"

    That sounds like an expensive proposition
    if you an avid collector outside your country
    do they also charge a tax in coins that you
    bring in to the country on your person ?
     
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