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 Replies: 21 / Views: 3,230 |
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Valued Member
 United States
207 Posts |
Laws vary by state, but here in CA, if your purchase is under $1500, sales tax applies. I was just wondering because "I heard about" somebody buying at a show and the dealers did not collect any sales tax.
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Bedrock of the Community
United States
19972 Posts |
They don't have to collect tax from the buyer in any state even if they are obligated to. However, if state law requires a sales tax, it will have to come out of the dealer's pocket on their sales. In essence, they are paying the tax for you. Personally, I've only ever paid a sales tax on coins a couple of times. The dealers I typically use pay the tax burden themselves.
Lincoln Cent Lover!VERDI-CARE™ INVENTOR https://verdi.care/
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Pillar of the Community
United States
7840 Posts |
At the last coin show I went to in OKC, the dealers only charged sales tax if you paid with a credit/debit card. When cash is king...no sales tax is collected...at least from the couple of dealers I bought from.
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Valued Member
United States
207 Posts |
Badthad, that is what I was thinking, but couldn't they just as easy, not report the sale at all, hold those coins in inventory, and not pay anything?
At any rate, I was a happy camper since I spent over $700 and sales tax in that city is 8.75%
Edited by Ron_CA
12/06/2012 10:53 am
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Moderator
 United States
189767 Posts |
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Pillar of the Community
United States
1721 Posts |
jbuck,
Once again, the JBUCK stops here. Thanks for the links. The second link has the state by state breakdown. Currently, I live in Virginia and my previous post fits right in with what the VA law states.
Edited by mds308
12/06/2012 1:39 pm
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Pillar of the Community
United States
5854 Posts |
At the local coin shows that I have been to, I have never been charged sales tax but that is not to say that I am not paying for it indirectly.
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Bedrock of the Community
United States
20753 Posts |
Quote:
At the local coin shows that I have been to, I have never been charged sales tax but that is not to say that I am not paying for it indirectly. So true today. So many say FREE SHIPPING but just add more to the sale price. Same with sales taxes I suspect. If a dealer is not sure, he just charges a bit more. If never questioned, he just pockets the excess. Most dealers don't worry about that anyway since they know there are no Sales Tax police roaming around the coin shows. Which brings up something funny. If you live in a State where there are Sales Taxes on coin sales but you buy them at a garage sale, should there be a tax? If you buy a coin at a flea market, should there be a tax? Estate sale? Auction house? And what if you buy a coin from a next door neighbor? And if a criminal sells you stolen coins, should he also ask for sales taxes? |
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Bedrock of the Community
United States
17884 Posts |
Now after all that lets answer the original question in a clear and concise manner. Are dealers supposed to collect sales tax at a show? The dealers are supposed to follow the sales tax laws current in the state the show is being held in. So if the state law calls for sales tax on the coins the dealer is SUPPOSED to collect it and remit it to the state unless the buyer has a valid resale license. What the dealers actually do varies quite a bit. Quote:
Most dealers don't worry about that anyway since they know there are no Sales Tax police roaming around the coin shows. Maybe not right now, but there used to be and I can easily see it happening again in the future. At one time back in the late 80's some states began sending state tax collectors to coin shows on Friday to make sure everyone had either a business license to collect taxes if they were local or had the dealers fill out the temporary license forms if they were from out of state. In some cases they would come back on Saturday and spot check the dealers sales to make sure they were collecting the taxes. At the New Jersey state show one year the tax man showed up on Saturday and when they found that Julian Liedman didn't have a temporary New Jersey tax license they had the police escort him out of the bourse room and wrapped "crime scene" tape all around his booth. If was hours before they let him come back in, tear down and leave. They wanted to have him pay the tax upfront for everything he had and then would refund after he sent then his actual sales figures. They finally just let him leave at the end of the day. I don't know if coin shows ever came back to New Jersey. They disappeared for awhile after that. As state budgets continue to tighten it would not surprise me to see the tax police make a comeback. |
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Pillar of the Community
United States
1200 Posts |
Most state tax depts may presently be staffed too thin to have agents to monitoring shows the way they did 20 years ago, but you can bet they still troll the big shows in places like Boston, NYC, DC, Chicago, New Orleans, Dallas, Las Vegas, San Francisco (to name just 8 out of a much bigger list), etc... The big cities with the big tourist/vacation/convention centers that host the big shows still draw the revnooers out of the woodwork like ants at a picnic.
The state tax depts may not presently have the horsepower to cover small, local shows like they used to, but they're not extinct yet. They're like cockroaches. They'll drop back and lay low when they have to, but they'll survive anything and as soon as the conditions are right, they'll repopulate and be back in force that'll blow your mind (unless the Mayans are right---in which case we'll all be done paying sales tax two weeks from yesterday).
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Valued Member
United States
158 Posts |
Never been charged sales tax at the CA coin show I go to, or when I lived in TN and went to those coin shows.
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Valued Member
United States
77 Posts |
It most certainly is a state by state requirement. I remember not that long ago a state considering implementing it, and going back and forth on the legislation. I don't remember the outcome, as it was not a state I do business in. I imagine sometimes some sales are pocketed, but I prefer to consider them as paying taxes on sales out of the price. If they choose not to, I am not aware of it.
Reading through the posts here I noted someone mentioning NJ, and that they were unsure if NJ had coinshows still. NJ still does host coin shows, just as a point of information.
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Pillar of the Community
United States
1590 Posts |
As has been said, see your states laws.
Something to check on, is if the tax is for the whole amount or for the whole amount minus the face value of the coin/bill.
What I mean is, if you give me a five dollar bill and I give you a five dollar bill there is no tax. If I gave you a five dollar bill and you gave me six dollars then IN SOME JURISDICTIONS only the amount over the face value, in this case one dollar, is taxable.
it pays to check.
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Bedrock of the Community
United States
36883 Posts |
They are suppose to, BUT if they do they should give you a written numbered receipt. I always ask for one when they charge me tax and they must provide it.
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Pillar of the Community
United States
863 Posts |
This forum will be the start of the tax police.
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Replies: 21 / Views: 3,230 |
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First Page
Posted 12/06/2012 07:44 am
