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fledgling
07-08-2011, 06:08 PM
Sahara Coin just told me "anything with a face value is taxed, bars are not"
This link indicates something changed June of this year. What are they defining as medium of exchange? Anyone know?

http://www.nevadaappeal.com/article/20110612/BUSINESS/110619979

Numisgold
07-08-2011, 07:38 PM
At least they took the first step to allow bullion bars not to be taxed. Maybe they take the next step someday and let bullion coins through as well.

Pretty hard to believe they are not allowing gold and silver eagles to be sales tax-exempt considering those are probably the most common form of gold ownership among the population. Some other states have a dollar amount where bullion coins and bars become non-taxable....$500, $1000, or $1500.

Numisgold

namwalker
07-08-2011, 07:49 PM
Sahara Coin just told me "anything with a face value is taxed, bars are not"
This link indicates something changed June of this year. What are they defining as medium of exchange? Anyone know?

http://www.nevadaappeal.com/article/20110612/BUSINESS/110619979

After reading the article I was confused about the law as it is reported on. When I hear the term bullion I think of either privately minted PM or certain government minted coins such as either ASE or AGE to name just a few. Doesn't the US mint refer to those coins as bullion coins and they have a face value? The article article never defines what the state's definition of bullion is, yet seems to celebrating the fact that it is now tax free.

I see that the writer of the article owns a LCS, and ends the article by lamenting about Reno losing a major coin show to Pittsburg. Could he be stirring up the waters for a private cause. Perhaps if you are local to the area and know where the article's writer has his coin shop, you should contact him for such a definition. Because from the article and my limited knowledge of all pm terms there appears to be a disconnect somewhere in definitions.

Since Sahara coins is a Nevada based business, one would think that they would know the state's tax law.

Best of luck in finding your answer.

altern8life
07-08-2011, 09:11 PM
The way I read that article, anything that includes a collector's premium is taxed, and anything that trades strictly at bullion value (as a medium of exchange) should be exempt.

I guess the argument the coin dealer is making is that there is a premium on coins with a monetary value, and therefore they are collectibles??? Sounds odd to me, but I am not the one who would have to fight with the tax board about it.

Anyway, it seems fairly clear that non collectible bars are exempt, so no reason not to stock up there. Sounds like there is going to be a good market for them in NV.

Numisgold
07-08-2011, 09:32 PM
A copy of this short statute is posted below. Note that the word "face" value is prominently displayed. That to me would mean that an AGE with $50 "face" value would be taxable, but a 1 oz round with nothing but 1 oz .999 pure stamped on it would get a pass. Using face value rather than instrinsic or bullion value seems to be intentional. Note that a 1 oz. US American Arts Medal from the 1980's would be exempt. There's a reason the US Mint stamps a face value on all it's regularly issued coins even following the closing of the gold window. So if you don't mind selling your 1 oz. AGE's for $75, you won't have to charge sale tax. So yeah, Sahara Coin is precisely right when they say anything with a "face" value is taxed.

AUTHORITY: 1, NRS 360.090.

A REGULATION relating to taxation; revises provisions relating to the sale of bullion; and
providing other matters properly relating thereto.

Section 1. NAC 372.170 is hereby amended to read as follows:
372.170 1. The tax applies to sales of coins or uncancelled stamps at a premium price for
purposes other than use as a medium of exchange or postage. The tax does not apply to sales of
coins or uncancelled stamps, even though sold at a premium price, if the purpose of the use of
the coins or stamps is as a medium of exchange or postage.

2. If the sales price exceeds the face value of the coins or stamps by 50 percent, they will be
deemed to have value as collectors’ items and will be taxable. If the sales price does not exceed
the face value of the coins or stamps by 50 percent, they will be deemed to have value solely as a
medium of exchange or postage and will not be taxable. Sales of any coins not currently
accepted as money and sales of cancelled stamps or stamps not currently accepted for postage
are taxable.

3. Sales of coins to gaming establishments at any price for use in gaming operations are not
taxable, except that, sales of coins at a premium price to gaming establishments for purposes
other than use as a medium of exchange are governed by subsection 2.

Adopted Regulation R154-10

4. The tax applies to sales of bullion at a premium price for purposes other than use as a
medium of exchange. The tax does not apply to sales of bullion, even though sold at a
premium price, if the purpose of the use of the bullion is as a medium of exchange.

Prospector
07-09-2011, 11:27 PM
Nevada residents might want to check around. Courts have ruled that there is no tax on an exchange of money for money. But I didn't catch just which courts those were. If this law stands, they can tax you every time you get change for a twenty or something.

DietrichEagle
07-12-2011, 12:29 AM
At least they took the first step to allow bullion bars not to be taxed. Maybe they take the next step someday and let bullion coins through as well.

Pretty hard to believe they are not allowing gold and silver eagles to be sales tax-exempt considering those are probably the most common form of gold ownership among the population. Some other states have a dollar amount where bullion coins and bars become non-taxable....$500, $1000, or $1500.

Numisgold
Do you know where to find a list of these states and thresholds?