Paying Sales tax on silver

[Day9]

My local coin store charges 8.75% Sales tax on all purchases under $1,500. Now if I bought silver once a year I could buy $1,500 at a time but I'd like to go in about once a month or so and pick up a few oz at a time.

How stronlgy should I avoid paying sales tax? Should I try to bargain? How? What do I say?

I'm new -- Do websites charges sales tax on online orders?

[reddirtcoins]

I would sort before I ever paid tax... welcome.. just get use to watching things here in the buy or trade sections... way better deals then 8.75%

[RTPMarine]

California I take it? You should buy online, especially via forums like this. An 8.75% spread is like buying an ounce at $29.90 instead of $27.50.

I am all about supporting your local community, but local coin shops in these states need to band together and get the laws fixed.

Edit: to answer your question directly, websites will not charge sales tax because it is interstate commerce. But keep in mind that any gains you make on precious metals are generally taxed at the collectible rate of 28% instead of the normal long-term capital gains rate of 15%.

[deacon]

A lot of online places make you pay more for shipping or credit card orders, so keep that in mind while shopping.

[CtrlAltBernanke]

You should ALWAYS avoid trying to pay any kind of tax.

[97guns]

My local coin store charges 8.75% Sales tax on all purchases under $1,500. Now if I bought silver once a year I could buy $1,500 at a time but I'd like to go in about once a month or so and pick up a few oz at a time.

How stronlgy should I avoid paying sales tax? Should I try to bargain? How? What do I say?

I'm new -- Do websites charges sales tax on online orders?

paying tax is a deal breaker for me, find another shop. most will "cover" the tax for you

[Rastatodd]

Here in Minnesota they tax you .0725% sales tax on bullion sales at the coin shop. But no sales tax if it is deemed a collectible coin. This is the reason I don't shop at the local coin shop. I refuse to pay tax on what Minnesota calls a investment. The biggest bullion dealer in the twin cities metro area was going to the state legislator to change the tax law, but had no luck.

[CU Baker]

Here in Minnesota they tax you .0725% sales tax on bullion sales at the coin shop. But no sales tax if it is deemed a collectible coin. This is the reason I don't shop at the local coin shop. I refuse to pay tax on what Minnesota calls a investment. The biggest bullion dealer in the twin cities metro area was going to the state legislator to change the tax law, but had no luck.

Thats why I drive over to North Dakota, no tax, only thirty miles to Fargo. Going over for something most of the time anyway.

[IdahoCopper]

Understanding taxes is easy.

There are two kinds of political man. One man works and one man steals from the man who works.

Taxes are theft.

[Engineer]

My 2 cents: Avoid taxes whenever possible, but never evade them. The first involves using legal loopholes which were written for the corporations, and the second involves the wrath of the IRS or your local tax officials.

[GTOJohn]

are you paying in cash? a lot of times they will not charge tax if ya pay them in cash.

[silverbullusa]

No coin shop in the country should be charging tax on ASE's or any other American govt. made bullion. If you are buying world bullion they can charge tax if selling for more then face value If they tell you they want 8.75% tax just walk away! There are to many people/shops/coin shows out there where the word "tax" is never spoken of in the coin and bullion world.If there are no shops around you then online is the way to go.

If some SOB senses you are a newbie at there coin shop they may try to pull a fast one on you to get you to spend the "minimum". Read up on the tax code for coins and bullion in your state so you know the "official" rules not what they tell you it is.

[fansubs_ca]

I think California has that "minimum" amount, Jason Hommel mentioned it
on his web site.

My dealer in North Dakota tells me that if it's a legal tender coin (even a
foreign legal tender coin such as the Canadian Maple Leaf) then it's exempt
under ND law. However bars would be subject to sales tax. That's OK, I've
typically bough 90% junk silver from him or the occasional Canadian 80%
when he's had it. (He tends to not get in as much Canadian and it sells out
fast.)

Buying by mail from outside your own state is the best way to beat the tax
if you are in a disadvantaged state.

Here in Manitoba coins are subject to PST but bars are not. I think the
exemption on bars might be subject to a minimum purity but most common
investment grade bars should qualify.

[OtusLotus]

YOU PAY 8.75% IN TAX! THAT IS CRAAAAAAAZY!