Discussion in 'Coin Chat' started by njpmoose15, Feb 15, 2012.
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Actually sir I think they are referring to sales taxes. Taxability of income, (which would be an IRS thing), is different.
For sales tax, you never need to charge it if the buyer does not live in your state. If they do live in yoru state, it will depend on yoru state law, as states have treated this issue differently. I offhand do not know the rules of MI regarding casual sales on the internet and what rules apply. Sorry. Contact your state department of revenue, and they should have a rulebook for you. Or you can just say I will not sell to MI residents, or risk it hoping no MI buyers bid.
Out of state, within the same state they should be charging you a sales tax.
Yeah, sorry, meant check with IRS on income and state as well for sales tax. Like I said, people don't charge sales tax when they run a garage sale and it's usually allowed. I think it really depends on what you are selling, how much, if you're a business or selling an item that already had sales tax applied when you bought, etc. Contacting the proper people will clarify what taxes are obligated by you as a seller of such things.
I agree sir, well said. Regarding garage sales, many states over the years specifically excluded these, but those laws do not apply to internet sales. It changes, and is different for each state, so like you said you must check your local state for the rules there.
The laws can be complicated and will vary by state.
Generally, if you only occasionally sell on eBay, you might not have to collect a sales tax.
If you are conducting many sales (eBay Store) you would need a retail sales license and
would have to collect sales/use tax on goods shipped to addresses in your state. You would
not have to collect sales/use taxes on goods shipped out of state. Individual states cannot
regulate interstate commerce.
Have you ever bought a used car?
Sales tax was paid when it was new and they collect more sales tax on the resale.
Correct. Sales tax is a tax on the transaction, not the asset itself. Garage sales have been, due to public pushback, excluded in many states, but it specifically has to be in the law as an exclusion since technically it would be required to be sales taxable. Its easy to get confused, but sales tax is on the transaction, it has nothing to do with gain/loss of what you are selling. Its simply the government taxing your "right" to sell something to someone else, and they make the buyer pay it, but may require the seller to collect it.
This will give you a list by state and whether or not they have sales tax on coins, bullion and paper money
You better check your states tax laws for small business.
I'm not sure about Michigan, but N.Y. requires small business' to have a Sales and Use Tax permit which authorizes the business to collect sales tax on all taxable goods and services including online sales but I'm not sure how that works with online sales to out of N.Y. state customers.
Any Secretary of State office could answer your question about this.
One warning. The State will always give you advice that is beneficial to them. If you ask whether you need to collect out of state sales taxes, or register for sales and use taxes for out of state sales, they very well could say yes. It is a very bright line, decided in 1991 in a case decided by the US Supreme Court, that if you sell out of state and do not have nexus in that state, you DO NOT have to collect sales taxes. I am simply saying do not trust your state to give you the correct answer on this one, since many people have been told the wrong answer by states hungry for revenue. If its out of state, you do NOT collect taxes, nor have to register to collect taxes.
Lots of cash starved States out there hosing their own people nowadays.
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