Do Coin Dealers Charge a Sales Tax?
Coin collecting can be an investment as well as a hobby. Many coins are worth more than their face value, and the rarest coins are worth millions of dollars. Sales tax can drive up the cost of buying collectible coins from dealers. Whether a coin dealer charges sales tax depends on the local laws where the dealer operates.
State Sales Tax
-
Sales tax terms vary from state to state because each state government has the authority to establish its own sales tax rules and regulations. In some states, there is no sales tax, and in others, there are both state and local sales taxes. As an example of the different regulations, Colorado exempts retail sales of coins from sales tax. In California, however, only "bulk sales" of coins -- defined as transactions for $1,500 or more -- are exempt from sales tax.
Bullion, Currency and Precious Metals
-
Sales tax rules for purchases of bullion and precious metals are similar to sales tax rules for purchases of coins: they vary by state. In Colorado, where sales of coins, bullion and precious metals are not taxed, coin dealers must charge sales tax on sales of collectible paper money. However, laws can change. Your local coin dealer or your state department of revenue might be the best source of information about sales tax on sales of coins.
References
Writer Bio
Marilyn Lindblad practices law on the west coast of the United States. She has been a freelance writer since 2007. Her work has appeared on various websites. Lindblad received her Juris Doctor from Lewis and Clark Law School.