Sales Tax by State
Below is a list of states where we are required to collect sales tax, and the rates. These rates vary sometimes by zip code. New states will certainly be added, and this list is applicable to numismatic sales. This list is applicable to our customer base and our products; dealers selling bullion may have other requirements, and this list does not include states with exemptions.
All businesses in the US which sell items across state lines by any means (internet, phone, email, text, print ads, mailings, etc.) are now required to collect tax appropriately.
District of Columbia (DC): 5.75%
Hawaii: 4% in effect after either 100k in sales or 200 transactions within the state, annually
Kentucky: 6% in effect after either 100k in sales or 200 transactions within the state, annually
Maine: 5.5% in effect after either 100k in sales or 200 transactions within the state, annually
Minnesota: 6.875% in effect after 10 sales totaling 100k or more annually
Mississippi: 7% in effect after sales totaling 250k annually
Nevada: 6.85% in effect after either 100k in sales or 200 transactions within the state, annually
New Jersey: 7% in effect after either 100k in sales or 200 transactions within the state, annually
New Mexico: 5.125%
New York: 7% to 8.875%, determined by address
Tennessee: 7% in effect after either 500k in sales
Vermont: 6% in effect after either 100k in sales or 200 transactions within the state, annually
West Virginia: 6%
Wisconsin: 5% in effect after either 100k in sales or 200 transactions within the state, annually
Due to the Supreme Court ruling on the case known as South Dakota v. Wayfair, Inc. (6/21/18), remote sales tax collection is being enforced in industries around the country. Businesses that for years have operated without the requirement to collect sales tax are now under mandates to do so. For the history of DWN, the responsibility of sales tax has fallen on our customers to pay. Since the ruling, which is broad and unwavering, businesses such as ours are under scrutiny and we are now forced to collect and remit sales tax as part of doing business. It is a burden on us, and certainly changes the way some people collect.
Some states have numismatic collectible exemptions, some states are considering exemptions, and still other states are considering revoking the numismatic and bullion exemptions on their books. This is a confusing requirement to adhere to, as rules and taxes vary from state to state, and often by zipcode within a state. The Industry Council for Tangible Assets (ICTA) is working hard to help coin dealers navigate these complex laws, and to lobby for continued exemptions and to add numismatic exemptions to state without any on the books currently.
This is by no means meant to replace advice from your own accountant or tax attorney. We’re learning the rules as we go, and working with a bookkeeper and our accountant, along with help from the ICTA, to ensure we are in compliance. We are sharing the information we are currently following so you can see if your DWN purchase will be affected by these tax laws.
