Online Dealers starting to collect California Sales Tax

Discussion in 'Bullion Investing' started by DavidinCA, Apr 20, 2019.

  1. DavidinCA

    DavidinCA New Member

    So a few weeks ago I register with JM Bullion as a Military Account in order to get the Military Discount. I live in California. Before hand, I was buying at their regular price.

    Today I log on to buy a simple Roll of ASEs. I find out that JM Bullion is now 'collecting' California Sales Tax as they say they are 'required' to do so. This increases my purchasing cost by over $30 for simple roll of ASEs. I can avoid the tax by purchasing at least $1500 worth of metals. That is the same policy as going to a local coin store in CA. Therefore, there is no benefit to me even with the Military discount to buy from JM Bullion unless I purchase over $1500 because other sites such as SD Bullion or Provident have not yet started to collect CA sales tax.

    Does anyone know if this is going to become standard no matter where the company is located? This might make the LCS a better option in the future.
     
  2. Avatar

    Guest User Guest



    to hide this ad.
  3. Garlicus

    Garlicus Debt is dumb, cash is king.

    The Supreme Court ruled that states can require the charging of sales tax, even if the seller does not have a brick and mortar in the state.

    Some companies have vowed to fight this, but with revenue (aka tax) shortfalls and ever growing underfunded pension liabilities, etc..., I can see this becoming the norm. Residents of states without a sales tax, like NH, luck out.
     
    Kasia likes this.
  4. CoinBlazer

    CoinBlazer Professional Teenager

    I have no sales tax on Bullion or coins in MO. Pretty great!
     
  5. myownprivy

    myownprivy Well-Known Member

    That's a California matter. Bullion should never be subject to sales tax. Taxing bullion is a unfair policy since no other form of investment has a sales tax. Bullion is now taxed upfront with a sales tax and at the end with a capital gains tax. It's completely unfair and discriminatory. But, this is a matter for California residents to fight. JMBullion is simply following the law after the Wayfair decision.

    If California exempts bullion from sales tax when the value of a single transaction is at least $1500, then wait to purchase $1500 at a time. Simple as that. I believe that's a somewhat logical piece of California's law to treat $1500+ purchases as nontaxable. Essentially it implies that a person spending that amount of money must be doing so to invest rather than collect. At least the law isn't 100% crazy.
     
    Last edited: Apr 20, 2019
    midas1 likes this.
  6. mpcusa

    mpcusa "Official C.T. TROLL SWEEPER"

    Just get a relative from out of state to make the purchase for you :)
    If not still allot of dealers that arent, and why isnt the law affecting
    Other companies ?
     
    midas1 likes this.
  7. midas1

    midas1 Exalted Member

  8. Burton Strauss III

    Burton Strauss III Supporter! Supporter

    If you are going to post references, please make sure they are current, not 2011 data...
     
  9. desertgem

    desertgem MODERATOR Senior Errer Collecktor Moderator

    Amazon deals with all of the states, and collects the St. tax for all except the 5 states with no state tax. Jim
     
  10. FryDaddyJr

    FryDaddyJr Junior Member

    jut start buying the 1500 dollar and more amount
     
  11. mpcusa

    mpcusa "Official C.T. TROLL SWEEPER"

    Why should it matter ? if i spend $1,500 or 50 Cents, it should be equal across
    The board.
     
  12. FryDaddyJr

    FryDaddyJr Junior Member

    boohoo life aint fair
     
    Burton Strauss III and mpcusa like this.
  13. mpcusa

    mpcusa "Official C.T. TROLL SWEEPER"

    Aint that the truth :(
     
    FryDaddyJr likes this.
  14. Burton Strauss III

    Burton Strauss III Supporter! Supporter

    Whining here does little to no good.
    Contact your California legislators and ask them to change the law.
     
  15. stoster38

    stoster38 Member Supporter

  16. TheFinn

    TheFinn Well-Known Member

    edited
     
    Last edited by a moderator: Apr 24, 2019
    midas1 likes this.
  17. TheFinn

    TheFinn Well-Known Member

    What I said, that was edited for some reason. Someone here must be a California State Legislator.
     
  18. medoraman

    medoraman Supporter! Supporter

    Well, at a minimum, keep a record of the tax paid. It will be included in your basis when you go to sell.

    For those getting all mad at the sellers, remember you were technically supposed to be sending in your use tax if bullion is taxable in your state anyway. It is not the seller's fault, its your state. Get pissed at them.
     
  19. desertgem

    desertgem MODERATOR Senior Errer Collecktor Moderator

    Many states tax all such products from the 1st dollar
    https://www.jmbullion.com/tax/

    Oddly enough many include copper and other metals in the form, that some might qualify as numismatic coins, including copper.

    I personally think that if a person can't save up or utilize income to make a one time $1500 -$2000 purchase ever year or so, they are already stretched too thin to be involved in it as an investor. Most experienced collectors understand the risks and only invest what they can afford to lose. Too many YooTubbies believe all of the " -censored-" the bullion sponsored conspiracy newsletters throw up for consideration, which we know far too many see as a holy directive.
    IMO Jim
     
    Garlicus likes this.
Draft saved Draft deleted

Share This Page