Question for collectors in Illinois

Discussion in 'Coin Chat' started by Hiddendragon, Jan 1, 2020.

  1. Hiddendragon

    Hiddendragon World coin collector

    As many of you know, a few months ago eBay started collecting sales taxes on all purchases, with the amount depending on your state's tax policies. Illinois does not tax coin purchases, but I wondered if this would be applied correctly on eBay. Somewhat surprisingly, it seemed to be correct and I have not been charged sales tax on any of the coin purchases I've made since this policy change. However, I also sell coins on eBay, and I sold two different orders to buyers in Illinois today. I noticed both of them were charged sales tax, and it seemed like 10% or so. Does anyone know if the state's tax laws changed to tax coin purchases with the new year or did eBay screw something up?
     
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  3. mynamespat

    mynamespat Well-Known Member

  4. Hiddendragon

    Hiddendragon World coin collector

    I hope they straighten it out before I want to buy something.
     
  5. Conder101

    Conder101 Numismatist

    As I said on another post, I would assume ebay isn't bothering to check what each state exempts from sales tax and probably just charges everything at that states sales tax rate. People who get charged taxes they should have been, are expected to apply to their states on their own for refunds of overpayment.
     
  6. mynamespat

    mynamespat Well-Known Member

    I live in an exempt state and have not been charged sales tax. The thread on CU states that bullion is still not being taxed for IL residences despite their new error with collectable coins. Ebay is definitely sorting out the taxes per individual states and categories. Considering how complicated this must be to implement across the platform, I can not really fault them for running into a few problems.
     
  7. Derrick Combs

    Derrick Combs Well-Known Member

    So glad I left Illinois for new Hampshire three years ago. I just sold an expensive item to a guy in new Jersey who doesn't Ebay much. He thought I was trying to scam him and wanted to see my new Jersey tax something or other since I was charging him sales tax to the tune of almost 50.00 on a 875.00 sale. That gets delivered today. I hope he don't want to change his mind.
     
    Mainebill likes this.
  8. Hiddendragon

    Hiddendragon World coin collector

    I've noticed NY and NJ have the highest taxes by far on coins of the ones I've sold.
     
  9. Jaelus

    Jaelus The Hungarian Antiquarian Supporter

    eBay is basing the tax solely on the state of residence of the buyer. I believe they must think they are fully compliant with this method, and don't want to spend extra money developing exceptions for edge cases (or having their legal staff determine what the edge cases might even be).
     
  10. Hiddendragon

    Hiddendragon World coin collector

    This isn't an edge case though, if I understand what you mean by the term. This is eBay taxing an item that is tax exempt in the state in question. The Illinois tax code says that coins and bullion are not taxed but eBay is taxing them. If I go to a coin shop in Illinois and buy coins they don't charge me tax, but if I buy supplies like 2x2s there, they do.
     
  11. mlov43

    mlov43 주화 수집가

    Hey, that's a potentially big problem with those more expensive sales...
     
  12. Rushmore

    Rushmore Coin Addict

    Recently I sold a Whitman album on EBay and they collected sales tax. I live in SD buyer lives in CA. Do I have to fill out paperwork to my state dept of revenue or does Ebay do that.
     
  13. Jeffjay

    Jeffjay Well-Known Member

    I now buy less on eBay since these taxes were implemented.
     
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  14. Hiddendragon

    Hiddendragon World coin collector

    Ebay collects and pays the taxes so you as the seller don't have to do anything, which is nice. You'll see that the seller paid the tax in the email you receive from Paypal but you don't actually receive that money yourself. I was asking the question here because I live in Illinois so I was wondering if I'm going to be mistakenly charged sales tax next time I buy.
     
  15. Derrick Combs

    Derrick Combs Well-Known Member

    In New Hampshire we don't even pay taxes on stuff at the stores. If a tv is 899.99 at wal mart you pay 899.99. Of course we are also charged no tax on Ebay. We pay no state taxes in our paychecks nor do we file a state tax at the end of the year. In case anyone else is looking to get out!
     
  16. riff

    riff I ain't got time to bleed

    I have bought quite a few coins in the last week on ebay and paid sales tax on all of them. Are you telling me I shouldn't have been charged as an Illinois resident?
     
  17. Paul M.

    Paul M. Well-Known Member

    I bet your property taxes are out of control though!
     
  18. Mike185

    Mike185 Well-Known Member

    and a higher cost of living!
     
    mlov43 likes this.
  19. ddddd

    ddddd Member

    New Hampshire does have high property taxes (3rd based on various rankings), but guess who has higher property taxes? If you said Illinois, you would be correct! Illinois is #2 (and that is with some of the highest sales tax rates and a decent state income tax).
     
    Paul M. likes this.
  20. ddddd

    ddddd Member

    According to the law, you should not have been charged sales tax on coins in Illinois.

    I tried contacting eBay, but haven’t had luck with them fixing this (they had technical issues). I’ll be trying again this week.
     
  21. Paul M.

    Paul M. Well-Known Member

    I’m from the Midwest. I know about Illinois and where many of their former governors go to “retire” after leaving office.
     
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