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How about a list of states and their taxes on numismatic coins?

15 posts in this topic

I can say that Messydesk's link is accurate for California....although I actually didn't know that all paper money was taxable below the $1500. Interesting....

 

jom

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And yet I have had 2 sellers try and charge me sales tax from SC and GA for internet sales. I see this is sellers using sales tax as an excuse to try and increase their profit margins.

 

edited: SC and GA no sales tax on coins or bullion. And my future home MT has no sales tax at all :grin:

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Texas no tax on sales over $1000.

 

That is correct as far as it goes but for sales under $1000 the sales tax gets much more complicated. In Texas the sales tax can range from 6.25% to 8.25% depending on where you buy your coin. I have NEVER had anyone in Texas correctly charge me sales tax for a purchase I made under $1000. The more reparable sellers try to get it right but the section of the law that everyone fails to follow is in paragraph d below: “The face value of United States coins and currency must be subtracted from the sales price before the tax is computed.”

 

Here is the actual law:

 

Texas Administrative Code

TITLE 34: PUBLIC FINANCE

PART 1: COMPTROLLER OF PUBLIC ACCOUNTS

CHAPTER 3: TAX ADMINISTRATION

SUBCHAPTER O: STATE SALES AND USE TAX

RULE §3.336: Gold, Silver, Coins, and Currency

 

(a) Sales tax is due on the sale in Texas of gold, silver, or numismatic coins or gold, silver, or platinum bullion unless sold to a purchaser in a single transaction in which the total sales price of all the items sold is $1,000 or more. Sales tax is not due on the sale of official State of Texas coins produced under the State Purchasing and General Services Act, §11.05. Sellers of gold, silver, platinum, or numismatic coins are required to hold a Texas sales tax permit and to collect sales tax on all taxable sales within the state. See §3.286 of this title (relating to Seller's and Purchaser's Responsibilities).

 

(b) Texas sales tax is due on a sale made by a seller in Texas when the purchaser takes possession of the item in this state even though the item may be taken outside the state by the purchaser. Texas sales tax is due if the Texas seller retains possession of the item in Texas as a service to the purchaser. The sale of gold or silver bullion within the State of Texas but which is being held in a repository outside the State of Texas at the time of sale is not subject to the sales tax.

 

© Texas use tax is due on any item purchased for use in Texas and brought into Texas from outside the state. The use tax is based upon the original purchase price regardless of the item's value at the time of entry. See §3.346 of this title (relating to Use Tax).

 

(d) Unless exempted as provided by subsection (a) of this section, sales or use tax is due on the sale of coins and currency when sold above face value or without a face value. The face value of United States coins and currency must be subtracted from the sales price before the tax is computed. Tax must be collected on the total sales price of foreign coins and currency. The face value of foreign coins and currency may not be subtracted from the sales price. The exchange of foreign currency at face value is not a taxable transaction.

 

(e) The sales tax exemption on the sale of gold, silver, or numismatic coins or gold, silver, or platinum bullion in a single transaction of $1,000 or more does not include jewelry or other items of adornment.

 

(f) The purchase of commodity contracts of gold or silver will not be taxable.

 

(g) Persons who use gold, silver, or other precious metals or diamonds or other precious stones in lieu of currency in acquiring taxable items for use will be considered to be bartering. Persons who use gold, etc., for bartering owe tax based upon the sales price of the taxable item.

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And yet I have had 2 sellers try and charge me sales tax from SC and GA for internet sales. I see this is sellers using sales tax as an excuse to try and increase their profit margins.

The way to handle people like that is to send a message to their state department of revenue and ask them why he is collecting sales tax on non-taxable sales, and is he remitting the tax to the state? They will have a nice talk with him.

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Oklahoma charges the same sales tax as it does for any other product. By the same token, however, I have never in nearly 50 years of collecting been charged for it.

 

On the other hand, I would much prefer to pay sales tax on luxury items such as collectables than to have to pay the same tax rate for requirements such as prescription drugs which OK also collects.

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Some posts to my recent Central States report inspired this... I'll start:

 

Missouri - no tax on numismatic coin purchases

 

 

Florida is the same...no sales tax on coins but there is sales tax on bullion

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Virginia: Sales tax is charged on all coin and bullion sales at the normal sales tax rate (currently 5.0%).

Texas no tax on sales over $1000.

 

And with no state income tax too, I am thinking that Texas would make a very nice future home place. :)

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If this internet taxation bill passes, it will be like legislating unreasonable search and seizure (which we already allow Corporations to do in monitoring their employees internet use), something Early Americans considered a reason to go to war against Britain. It is an open attack on the common man and an attempt to further strangle financial privacy and small business.

 

Texas is 8.25 % with transactions over $1000 exempt. My ebay sales to Texas residents are very rare as I openly state I am required to collect Texas sales tax by law in my store terms.

 

If the internet taxation bill passes I believe it will kill online coin selling.

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