SCOTUS Wayfair Decision: What You Don't Know Can Hurt You
Imagine Spending Thousands Registering Your Business, Collecting Sales-Taxes, and Remitting Sales-Taxes to Dozens of States on Sales
Hopefully you are aware by now that the landscape of interstate commerce was changed with the 2018 Supreme Court’s decision in the South Dakota v. Wayfair case. The Court’s decision has caused many states to require dealer registration (and filing of state tax returns) by any dealer meeting state determined thresholds, whether or not the dealer has sold only state tax exempted items. Dealers are also required to collect and remit sales taxes on all coins, currency, and precious-metals sales to buyers in any state in which such purchases are not specifically exempted under the state statutes. Right now, 13 states have no exemptions, but lawmakers in Maryland, Pennsylvania, and Washington state want to remove the exemption and others are expected to follow. In short, wherever there are no bullion exemptions, for example, gold or silver must increase 4% – 7% for an investor to break even. Sales will plunge!
* Gold Price: $1,500
What You Don't Know about the Supreme Court's Decision in the South Dakota v. Wayfair Case Can Significantly Damage Your Business
The Court’s decision makes it likely that if you meet certain minimum state-tax law requirements, you may now, or soon (depending on the state), be required to register and collect sales-taxes on all coins, currency, and precious-metals sales to buyers in any state without full numismatic and bullion exemptions.
If you do not collect sales-taxes where required on any or all retail sales, you or your company will owe the tax regardless of whether you collected it from the buyer. Moreover, state numismatic exemptions will be in jeopardy as states reconsider their sales-and-use tax laws.
Taxes Can Be Imposed No Matter How a Sale Was Made or How a Service Was Provided
The Court’s decision is not limited to internet sales. It includes telephone solicitation sales, newspaper and radio ad responses, flyers mailed by you or your business, telecommunications of any kind, and any other means leading to a sale across state lines. There are no exceptions.
Numismatic and Bullion Exemptions Must Be Maintained and Expanded
Unless a state has (and maintains) an exemption, consumers who currently buy across state lines will now have to pay sales-taxes on purchases from out-of-state dealers, even if the dealer is located in a state with an exemption.
ICTA has successfully grown the number of states with full or partial exemptions to 37 states in five years, including Alaska, Delaware, Montana, New Hampshire, and Oregon, which do not have sales or use taxes.
Maintaining and expanding that work is now even more important than ever to reduce the risk the burdens of new or amended state tax laws.
Out-of-State Dealer Registration
States will require out-of-state dealers (meeting thresholds) to register with the state where delivery occurs. Some states may have very low thresholds. Exempted sales will count toward the threshold and registration will be required.
Proof of Resale
Business to business transactions will become much more complicated. Ten states presently do not accept out-of-state resale certificates.
Costs of Collection of Taxes and Audits from the Buyers' States
States can enforce sellers to bear the entire cost of tax collection and require audits to be held in the buyer’s state.
ICTA's Fight to Maintain and Expand State Tax Exemptions
What was very important is now crucial. Dealers need to recognize that every single one of their customers could be targeted by new tax laws and/or losses of exemptions. Dealers are now affected by what happens in every state, not just their own state.
Help Us Help You
ICTA is a 501(c)(6) tax-exempt association and is supported solely by dues and contributions.
CLICK HERE for more information about joining.
To contribute, donate online or make your check payable to ICTA, P.O. Box 237, Dacula, GA 30019.
Valuable Resources for Dealer-Members
“The Impact of the Supreme Court Decision in South Dakota v. Wayfair on the Numismatic Community”: A white paper that dives into the totality and complexity of the interstate-taxation issue that our community and others now face. To download a copy of the white paper, dealer-members can login, then, from the main menu bar, select Resources > White Papers > Sales Tax Exemption.
“Sales-Tax Status & Economic Nexus Requirements by State”: With the states now swiftly acting to collect sales-tax revenue beyond their borders, we will keep this guide updated as changes occur. To access the latest guide 24/7, members can login, then, from the main menu bar, select Resources > White Papers > Sales Tax Exemption.
| 1909-S VDB Lincoln Cent State Sales-Tax Range: $168 – $294 (Imaged by Heritage Auctions, HA.com.) |
American Eagle Gold Bullion Coin State Sales-Tax Range: $60 – $105* (United States Mint image.) |
1881-S Morgan Silver Dollar State Sales-Tax Range: $5 – $8 (Imaged by Heritage Auctions, HA.com.) |
Hopefully you are aware by now that the landscape of interstate commerce was changed with the 2018 Supreme Court’s decision in the South Dakota v. Wayfair case. The Court’s decision has caused many states to require dealer registration (and filing of state tax returns) by any dealer meeting state determined thresholds, whether or not the dealer has sold only state tax exempted items. Dealers are also required to collect and remit sales taxes on all coins, currency, and precious-metals sales to buyers in any state in which such purchases are not specifically exempted under the state statutes. Right now, 13 states have no exemptions, but lawmakers in Maryland, Pennsylvania, and Washington state want to remove the exemption and others are expected to follow. In short, wherever there are no bullion exemptions, for example, gold or silver must increase 4% – 7% for an investor to break even. Sales will plunge!
* Gold Price: $1,500
What You Don't Know about the Supreme Court's Decision in the South Dakota v. Wayfair Case Can Significantly Damage Your Business
The Court’s decision makes it likely that if you meet certain minimum state-tax law requirements, you may now, or soon (depending on the state), be required to register and collect sales-taxes on all coins, currency, and precious-metals sales to buyers in any state without full numismatic and bullion exemptions.
If you do not collect sales-taxes where required on any or all retail sales, you or your company will owe the tax regardless of whether you collected it from the buyer. Moreover, state numismatic exemptions will be in jeopardy as states reconsider their sales-and-use tax laws.
Taxes Can Be Imposed No Matter How a Sale Was Made or How a Service Was Provided
The Court’s decision is not limited to internet sales. It includes telephone solicitation sales, newspaper and radio ad responses, flyers mailed by you or your business, telecommunications of any kind, and any other means leading to a sale across state lines. There are no exceptions.
Numismatic and Bullion Exemptions Must Be Maintained and Expanded
Unless a state has (and maintains) an exemption, consumers who currently buy across state lines will now have to pay sales-taxes on purchases from out-of-state dealers, even if the dealer is located in a state with an exemption.
ICTA has successfully grown the number of states with full or partial exemptions to 37 states in five years, including Alaska, Delaware, Montana, New Hampshire, and Oregon, which do not have sales or use taxes.
Maintaining and expanding that work is now even more important than ever to reduce the risk the burdens of new or amended state tax laws.
Out-of-State Dealer Registration
States will require out-of-state dealers (meeting thresholds) to register with the state where delivery occurs. Some states may have very low thresholds. Exempted sales will count toward the threshold and registration will be required.
Proof of Resale
Business to business transactions will become much more complicated. Ten states presently do not accept out-of-state resale certificates.
Costs of Collection of Taxes and Audits from the Buyers' States
States can enforce sellers to bear the entire cost of tax collection and require audits to be held in the buyer’s state.
ICTA's Fight to Maintain and Expand State Tax Exemptions
What was very important is now crucial. Dealers need to recognize that every single one of their customers could be targeted by new tax laws and/or losses of exemptions. Dealers are now affected by what happens in every state, not just their own state.
Help Us Help You
ICTA is a 501(c)(6) tax-exempt association and is supported solely by dues and contributions.
CLICK HERE for more information about joining.
To contribute, donate online or make your check payable to ICTA, P.O. Box 237, Dacula, GA 30019.
Valuable Resources for Dealer-Members
“The Impact of the Supreme Court Decision in South Dakota v. Wayfair on the Numismatic Community”: A white paper that dives into the totality and complexity of the interstate-taxation issue that our community and others now face. To download a copy of the white paper, dealer-members can login, then, from the main menu bar, select Resources > White Papers > Sales Tax Exemption.
“Sales-Tax Status & Economic Nexus Requirements by State”: With the states now swiftly acting to collect sales-tax revenue beyond their borders, we will keep this guide updated as changes occur. To access the latest guide 24/7, members can login, then, from the main menu bar, select Resources > White Papers > Sales Tax Exemption.