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 Replies: 28 / Views: 2,227 |
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Valued Member
United States
206 Posts |
I have recently noticed that some dealers charge sales tax on the coins or paper money that you purchase. Why is this? I thought that it was illegal to charge sales tax on U.S. currency. Thoughts? *** The duplicate topic has been removed please review all the forum rules including the one on cross-posting. ~ Forum Dad *** |
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Valued Member
United States
250 Posts |
Law in Ohio is that coins are taxable. Even on ebay if I purchase a coin and it happens to be a dealer, I do have to pay the state tax. |
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Valued Member
United States
239 Posts |
I have to pay tax on coins in California as well. However, for some reason they never charge sell's tax at coin shows.
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Pillar of the Community
 United States
5953 Posts |
In Texas if the value is over $1000 no tax, no mater what the value under $1000 you don't pay sales tax on the face value of the coins
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Pillar of the Community
United States
936 Posts |
No tax here is Michigan, at least I have never paid any at the coin shows and stores
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Bedrock of the Community
United States
12437 Posts |
Tax on numismatics varies from state to state. Some tax up to or over a certain dollar amount and others, like my state of Missouri, charge no tax at all.
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Pillar of the Community
United States
1327 Posts |
I do not pay tax on coin in Idaho, I do have to pay sales tax for Supplies thought. The dealer was telling me the reason Idaho doesn't pay taxes is because we have Silver Mines that are minning silver so since we have that there is a law tht says you do not pay Sales tax on coins. I am not sure if it is the same in other states but that is why in Idaho
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Pillar of the Community
United States
819 Posts |
Strangely enough, I heard one of the guys in my local coin store explain this just last Saturday.
I'm in Texas, so anything over $1000 is tax free. The difference is; if you spend $999.99, the State declares that you are purchasing for the purpose of collecting. Sales Tax is charged. However, if you purchase $1000.00, the State declares that you are -investing.- No Sales Tax.
The $1000.00 is an arbitrary number really.
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Valued Member
United States
144 Posts |
For any state, you should be able to deduct the face value of the coin. That's just, for example, getting change for a dollar.
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Pillar of the Community
United States
597 Posts |
The funny part of buying coins in Texas was that it didn't matter what you bought, it just had to be over $1000 to be tax exempt.
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Valued Member
United States
277 Posts |
Sales tax is sales tax, weather it's coins or gumballs.
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Valued Member
 United States
206 Posts |
Thank you very much. I found that "if you spend $999.99, the State declares that you are purchasing for the purpose of collecting. Sales Tax is charged. However, if you purchase $1000.00, the State declares that you are -investing.- No Sales Tax." (ElleKitty) was pretty interesting. I'm not sure if its that way in CT but i'll ask.
Thanks again!
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Bedrock of the Community
United States
17884 Posts |
quote:
I thought that it was illegal to charge sales tax on U.S. currency
You thought wrong. Lots of people think that, and I've never understood where they get that idea from. |
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Pillar of the Community
United States
1283 Posts |
Yes, every state has its own laws. California is like many states that charge tax on any purchase under $1000.00
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Pillar of the Community
United States
597 Posts |
Here in Michigan bullion purchases are not taxable at any amount, so one of my local dealers sells a lot of "bullion".
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Valued Member
United States
144 Posts |
So if I sell you a dollar for a dollar, do some of you think some states charge sales tax on that transaction? If you go in to a store and ask for 4 quarters for a dollar, should they charge sales tax on that transaction?
In Texas, if it's legal tender, and you pay $13 for a Morgan, you pay sales tax on the $12 portion that's not just getting change for a dollar. I think you would be hard-pressed to find a state where that wouldn't stand up in court. Granted, this is only a tiny deduction.
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Replies: 28 / Views: 2,227 |
Posted 08/22/2007 9:17 pm
