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 Replies: 16 / Views: 3,207 |
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Valued Member
United States
67 Posts |
I'm looking to make my first purchase of silver bullion coins and have a couple of questions. Do you pay sales tax on the purchase of bullion related items? If so, if you purchase out of state can you avoid the sales tax? Do you have an online source to buy ASEs that you trust? This place looked to have good pricing - http://www.meritgold.com/ Anybody ever deal with them? |
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Pillar of the Community
United States
8516 Posts |
I think it all depends on how much shipping is or what kind of payment they'll accept. I like SilverTowne when they do free shipping. We don't have a sales tax in Oregon so I don't know how that works.
Oregon coin geek.....*** GO BEAVS ! ! ! ***
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Bedrock of the Community
13014 Posts |
Provident metals is real good.
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Pillar of the Community
United States
5850 Posts |
As far as I know, there is no sales tax on bullion, period.
Provident Metals (www.providentmetals.com) and Goldmart (www.goldmart.com) are two sites I have used in the past to buy ASEs. Which one is best depends on how many you plan to buy and how you want to pay (Goldmart, for example, has free shipping on orders over $5000 and has the best price if you pay by check or wire).
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Valued Member
United States
397 Posts |
I've looked at several different sites to buy from, and while I have not actually pulled the trigger yet, I've taken the check out process as far as I good to see shipping prices and final total and I have never seen a site add on sales tax.
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Pillar of the Community
United States
3640 Posts |
I'm in Mass. and we do have a 6.25% sales tax.(among a gazillion other taxes:) I have never ever paid sales tax on any coin that I have purchased anywhere except for a couple of antique dealers. They seem to be able to make up their own rules etc. about charging it. Actually I never paid any tax there either, as I told them I would not buy the coins if they did indeed charge me the tax. They sold me the coins :) I think the average on ASE's is about $3.00 over spot price at most bullion dealers. So shop around. You may be able to get some from local dealers etc. at 1 or 2 bucks over spot. Maybe even at spot or less at other places. I have a local antique dealer that has some in his shop and he wants $35.00 ea. No one even knows that they are there as they are buried amongst other stuff in a display case. Soon as silver gets back up a few bucks over $35.00 I will then pick them up. O.K. so I'm Frugal  |
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Bedrock of the Community
United States
14454 Posts |
we pay sales tax on Bullion here in NC but if you order online and if the place isn't in NC nor has a shop in NC then you do not have to pay sales tax. Each state is probably different and you would have to check your state to see how it works there
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Pillar of the Community
United States
3486 Posts |
Here in Connecticut the local shop never charged me sales tax. Twice I have bought from ebay dealers in CT without tax. One was a coin and the other was merchandise. Bullion such as the ASE may by subject to special regulations and tax. |
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Bedrock of the Community
United States
20753 Posts |
Sales taxes can drive you nuts. In Illinois no one seams to know what to charge for sales taxes on bullion of coins. Some do and some don't. In Wisconsin I've never paid a sales tax on a coin, YET. Same in Indiana but maybe it's all because no one knows or just don't care. I'm sure someone will start posting the laws on the books but I wonder who really reads them.
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Pillar of the Community
United States
5850 Posts |
I don't know how reliable this information is, but this site has a list of states that have sales tax exemptions for bullion purchases. Interestingly enough, in Massachusetts (where I also live, Indian1), the exemption is supposedly only for purchases over $1000. Who knew? |
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Bedrock of the Community
United States
17884 Posts |
Whether you have to pay sales tax or not depends on what the law is in the state you live in.
If you buy from someone out side the state you live in then no you don't have to pay sales tax BUT if your state does charge sales tax you are suppose to voluntarily pay to the state a use tax equal to the amount that you would have paid in sales taxes. This use tax in normally listed on your state income tax form that you file each year. Most people ignore the use tax and the states are continuously trying to find some way to enforce its collection. Usually by trying to form collectives with other states to force merchants to collect the sales taxes due in other states and then send them to the states.
There is an exception to the general rule of not having to pay sales tax on out of state purchases. If the merchant you are buying from has established a physical presence or nexus in your state then you will have to pay sales taxes even if you order from the out of state location.
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Pillar of the Community
United States
1027 Posts |
The states that, like my Texas, stop charging sales tax after a certain dollar threshold, do so on the notion that purchases under that amount are made for collector purposes and purchases over that amount are for investment purposes. Collectables are taxable and investments are not. It is totally arbitrary but that is the intent. I suppose most states figure they will get you when you sell your investment and pay tax on the income but in Texas, we don't have income tax. Any time you find bullion ASEs at or below spot + $2, you are getting a good deal since that is what the mint charges APs for them.
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Pillar of the Community
United States
3640 Posts |
BarryG Noted, Thanks. Gonna check up on that. Also an ASE is still considered legal tender correct ? Not bullion. As far I know (usually not much either:) Any legal tender cannot be taxed period. Regardless of the states. I know that states can make up any law that they wish and even get it on the books but I would think at the federal level the no tax on legal tender would hold up in court. Bullion bar's, rounds, etc. could be taxed. As far as what I learned from the antique dealers is that the state gives them the choice if they want to tax legal tender or not. So at least in Mass. then it must be a non law issue as far as a sales tax being applied. |
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Valued Member
United States
461 Posts |
Indian1 hit the nail on the head. ASE are not bullion they are legal tender hence them carrying the dollar demonitation on them and you could spend them like a dollar if you wanted. Hence them being legal tender they can not charge you sales tax or any tax on them regardless of the state or whether you purchased them online. |
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Bedrock of the Community
United States
17884 Posts |
There are a lot of states that would argue that with you. And even if it were true, you would still be liable for sales tax on any amount over the face value
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Pillar of the Community
United States
1027 Posts |
You need to examine the Federal law closely to make sure that it doesn't say only that legal tender cannot be taxed when traded at face value. It is quite possible that only the first dollar of an ASE is free from tax or that none of it is because it is being traded above face value. The fact that it is not being used as legal tender may allow taxation. This may be part of why American PM coins are set to a face value so far below metal value (even back in 1986). |
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Replies: 16 / Views: 3,207 |
Posted 10/24/2012 2:53 pm
