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 Replies: 7 / Views: 1,000 |
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Pillar of the Community
United States
1283 Posts |
Seriously. In CA you pay sales tax on coins for any purchase under $1000. Even though we're talking about collector value, I still think it's wrong to charge tax when you're exchanging money for money. I also think repealing the tax will help dealers out here (small business), so in a small way you're helping the economy. With the introduction of the internet dealers are already having to compete with the general public ( ebay and such) when it comes to selling AND buying coins. I think that's a good thing. But then factor in buying on line circumvents the tax issue and that's wrong as well. And I'm going to be quite honest with you. I'm not primarily concerned with small business or the economy. I just want to an 8% premium on an already expensive hobby. |
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Pillar of the Community
United States
2600 Posts |
That is why I love buying in Delaware. Jim  |
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Pillar of the Community
United States
673 Posts |
Here in Ohio we did not have to pay taxes on numismatic items...Until Tom Noe and his cohorts popped up, now we pay on ALL transactions- even over $1000 I am pretty sure. My dealer will tell most people with large amounts of bullion to sell to go to Michigan (A ten minute drive to the MI line ) where there is no tax....Yet
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Pillar of the Community
Germany
1238 Posts |
quote:
Even though we're talking about collector value, I still think it's wrong to charge tax when you're exchanging money for money.
As you wrote, it's about the numismatic value. It is similar in the EU - when you just exchange money, there is no such tax (VAT here). So when I go to a Bundesbank branch in Germany and "buy" a €10 silver collector coin, I pay exactly that: 10 euro. No VAT. Now if I order coins from a dealer in the EU who does not give them away at face, I do pay VAT depending on the member state the dealer is in: Germany 7%, Austria 10%, etc. Only certain coins (basically bullion gold pieces) are exempt ... Christian |
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Bedrock of the Community
United States
20753 Posts |
You have my sympathy. However, as you California people keep bragging about you have all that beatiful, fantastic weather. You can walk outside in a T shirt in January. The sun is always shinning.  The air is so clean. So you pay a little extra in taxes for the goverment to provide you with all that.  Here in the Chicago area we pay no taxes on coins anywhere. Not at coin shows, coin stores, flea markets. But then we pay for it with snow, sleet, hail, rain and as right now, temperatures in the 20's. Now I just got back from one of our many, many coin shows but had to drive amost 15 miles in that cold, cold weather. And then there is another coin shows this weekend but again, almost 10 miles in this cold, cold weather. BUT NO TAXES ON COINS. Summation is move here, suffer with our weather, pay no taxes on coins. All just kidding you know.  Or am I? |
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Pillar of the Community
United States
1173 Posts |
ND also does not charge tax on coin sales. That's nice.
You Californians need to do a grass roots exercise to get some legislators (and preferably your Governor) on board, so the next time the sales tax law is rewritten, you can get them to slip in a small change (no pun intended) on the exchange of change for bills. Seriously...the only way to effect change is to start working for it.
Best of luck...I'm going to visit your beautiful, but restrictive, state in about a month on a short business trip.
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Pillar of the Community
 United States
1283 Posts |
Carl, you hit the nail on the head. It must have been the Fair Weather Tax initiated by ex-Governor Grey Davis. :)
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Pillar of the Community
United States
6399 Posts |
The sales tax is one reason why I never win auctions from Teletrade anymore. When they were in New York my winning bids were exempt from CA tax. Now that they have their sales locus in California, I'm at an 8% disadvantage compared to out-of-state bidders. The same applies for Heritage, which charges CA tax even though they are located in Texas. My coping strategies are: 1) Buy at coin shows. Dealers at CA shows almost never charge tax. I'm not sure how they can legally do that, but it is so. 2) Buy from out-of-state dealers, either online or by finding attractive offers in printed ads. 3) Buy on ebay, but not from CA-based sellers who will charge me tax! 4) Save up until I have $1000 to spend and avoid the tax. For big-ticket items I might still have a shot at Teletrade or Heritage lots. Unfortunately, I usually seem to run across some lower-cost, tax-exempt item that depletes my cash before I save up $1000.   |
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Replies: 7 / Views: 1,000 |
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Posted 01/12/2008 10:28 am
