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 Replies: 21 / Views: 3,211 |
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Valued Member
United States
207 Posts |
What say CCF?
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Pillar of the Community
United States
3540 Posts |
Have to follow state law.
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Moderator
 United States
14463 Posts |
here in Georgia they don't collect tax at shows
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Bedrock of the Community
United States
12437 Posts |
It varies widely from state to state. Some do not tax while other states do, some states will only tax if the dollar amount is over or under a certain limit.
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Pillar of the Community
United States
3276 Posts |
Good question, I'm curious. Any californians know if they charge tax at shows here? I've only been to one and didn't buy anything.
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Pillar of the Community
United States
1721 Posts |
The way I see it, if you have a business license, you are supposed to collect sales tax unless the customer has a tax ID and is buying for resale. The customer has to fill out a form and provide a tax ID number which will stay with the dealer. Some dealers will pay the sales tax for the customer but they are supposed to pay the sales tax on the sale price collected.
If you have a booth at a mall, the mall staff will collect the sales tax during the transaction. The individual dealer only has to pay the income tax on their profit.
I've heard of undercover tax collectors 'shopping' a dealer to see if they are collecting sales tax. Then following up on the dealer to make sure they are reporting and paying their sales taxes collected.
I'm sure every state has their own rules.
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Pillar of the Community
United States
919 Posts |
I have found this varies from table to table. Few charge tax at shows in my area because it puts them at a disadvantage. I feel sorry for the local stores because I know a lot of people wait to buy at shows to save the 5.6% sales tax here.
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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
19949 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
188440 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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Replies: 21 / Views: 3,211 |
Posted 12/06/2012 01:16 am
