Stack’s Bowers Vault … no thanks

I’m guessing the Vault tax avoidance scheme might work and might possibly be legal. Coin purchasers could give their address to sellers as Vault’s. I don’t think there is anything in Wayfair and probably not in its implementation by the states that requires a seller to verify the home address of purchasers. All they can verify is ship-to address because they write it on the package and invoice. Texas has no sales tax on coins or bullion. I’m sure that’s why SB located the Vault there instead of their home state of California. I live in California, and there is an 8+% sales tax on coins costing less than $2,000. So, it might pay me to have a Vault account. I can have my purchases sent directly to the Vault and then immediately withdraw the purchase from the Vault. Yeah, I’ll have to pay their withdrawal fee, but it will be less than California sales tax.

Cal

 

Log in or Sign up to hide this ad.

Generally speaking - the prevailing sales tax is determined by the jurisdiction where the buyer or the buyers designated agent takes custody and control, if not fleeting, of the tangible personal property purchased.

 

Better check the CA rules on use tax. How long does it have to sit in TX before you can transfer it w/o use tax?

 

Ask me if I’ll bother to do that. I’ll have to see how the Vault venture goes before I try it. There are other issues that can be killers … like how much will the Vault charge for shipping withdrawals. There are a number of states other than Texas that don’t tax coin purchases and a lot of cities in Texas where the Vault could have been located. Dallas was clever for a several reasons. No sales tax is one. Good shipping connections is one. Another is that Heritage is located there. So, shipping costs from Heritage to the Vault should be low. I wouldn’t be surprised that for large purchases, the Vault might go for free to Heritage to pick-up coins. And there could even be some agreement between SB and Heritage concerning the Vault.

Cal

 

Yep


It wouldn't surprise me if the vault is the back half of the building HA bought.

But too many questions, not enough answers. Starting with where is the legal agreement?

 

If it is a sales tax avoidance scheme you are after - why don't you just rent a PO Box at a Mailboxes Etc in Alaska, Delaware, Montana, New Hampshire or Oregon. These States have no sales Tax. Then once a month call them up and have them drop ship the contents of your box directly to your home.

 

Here's an interesting link.
https://stacksbowers.com/about-us/faqs/sales-tax/

It appears it varies from state to state. The whole Wayfair Act is convoluted and oppressive on small businesses........ and other than the etail giants that can handle the complexities, largely ignored by mom and pop etailers.

 

There is no Federal Statute known as the Wayfair Act. The authority of a State to utilize an economic test as a means for establishing sales tax nexus is derived from a Supreme Court ruling issued in Wayfair vs South Dakota.

 

I've thought about that. But have concerns over safety and shipping insurance from the trans-shipper.

Cal