Keeping PM buying cost down idea

Discussion in 'Financial Cents' started by Prepper12, Sep 10, 2018.

  1. Prepper12

    Prepper12 Monkey

    I've been buying PM's for many years, which is obviously not inexpensive. Well, to make things worse, our state is about to start charging sales tax on online purchases, and my state is not one that exempts sales tax on PMs. I've heard that the sales tax charged is based on where the package is being delivered to. So I came up with an idea.

    If I made an order and had it sent to a package forwarding service in a state (such as Texas) which doesn't charge tax on PM purchases, and then have them forward the package to my actual address, would that work? Beyond something like that, I don't see myself buying metals anymore. When the cost of an order is in the several thousands, the added cost of the taxes raises it several hundred more. It's hard enough to get ahead with the dealer premium, and then the market doesn't cooperate, we certainly don't need hundreds of dollars in sales taxes being thrown in.

    Anyway, I don't know if this idea would work or not, so I thought I'd throw this idea out there to see what folks here think.
  2. SB21

    SB21 Monkey+++

    Not sure about any forwarding service ,,,, might be better if you knew someone in that area .
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  3. Prepper12

    Prepper12 Monkey

    I don't.
    Why not use a forwarding service? Are they known as not very reliable? I looked up some. One is called Us Global mail. They seem to be pretty reputable.
    Gator 45/70 likes this.
  4. Dunerunner

    Dunerunner Brewery Monkey Moderator

    Not sure how an insured shipment would work in that instance. Would it stop at the initial destination or would coverage continue until the package is delivered to your door?
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  5. SB21

    SB21 Monkey+++

    1) I wasn't aware of a forwarding service ,,,
    2) Like Dunerunner said , the insurance coverage and delivery was one of my concern's as well ,
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  6. ghrit

    ghrit Bad company Administrator Founding Member

    The problem is with the sales tax business on internet sales, various states are wading into that area; for some reason they think they should be allowed to wet their beaks. Forwarding services should be fine, but do NOT take my word on that, go for references.
    Gator 45/70 and sec_monkey like this.
  7. sec_monkey

    sec_monkey SM Security Administrator

    the IRS plus others can still track yer shipment .. jus sayn ..

    plus like @Dunerunner plus @SB21 said, insurance will be an issue ..

    @ghrit yep ..
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  8. DarkLight

    DarkLight Live Long and Prosper - On Hiatus Site Supporter

    What you are describing, unfortunately, is technically tax evasion. Yea it's state tax, but evasion none the less and you are technically responsible to pay "state use tax" on a purchase made outside of your state in a state that didn't have tax on the item.

    This doesn't fix the issue or solve the problem and if you get caught, the penalties can rack up quickly. Although not as bad as stiffing the IRS.
  9. Gator 45/70

    Gator 45/70 Monkey+++

    My state started that internet tax thingy last year, Mandating that it was voluntary for 2017
    Now in 2018 its mandatory, Don't know how they plan on going about checking on how or what you had delivered to the door?
    But I do know the Democrat Governor started this crap!
    techsar and sec_monkey like this.
  10. VisuTrac

    VisuTrac Ваша мать носит военные ботинки Site Supporter+++

    Well, that's interesting. I didn't know some states charged sales tax on money.
    so if you bought a 10 dollar bill in another state with a 10 dollar bill because it had a great poker hand serial number .. you'd have to pay tax on the trade?

    Y'all probably got taxed on the original 10 dollar bill as part of your earnings.

    It's a scam I say. Next thing you know we'll go the way of the EU and start adding a VAT on it as well.
  11. ghrit

    ghrit Bad company Administrator Founding Member

    The thing is, PMs are NOT money, they are a commodity. No question that'll raise a ruckus, but no less true. Just because it is stamped 1 Dollar and can be used as legal tender at that amount, you should not be too surprised if it's worth more, and the merchant gladly accepts it for that 1 Dollar pack of gum.

    VAT is a real possibility. probably moreso than a flat tax.
  12. oil pan 4

    oil pan 4 Monkey+++

    The dems already failed to pass vat tax with the super majority under 0bama.
    I'm really not sure how they screwed that one up.
    Last edited: Sep 10, 2018
  13. SB21

    SB21 Monkey+++

    Don't forget to pay the taxes on those poker hands you won ,,,,,,,,:cautious:
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  14. sec_monkey

    sec_monkey SM Security Administrator

    [YD] @ VAT

    jus sayn

    tis guaranteed to crash the economy
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  15. oil pan 4

    oil pan 4 Monkey+++

    What makes you think that isn't the plan?
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  16. Prepper12

    Prepper12 Monkey

    It doesn't seem to matter if they're Dem or Republican. In my state, it was a Republican governor who decided to take the SCOTUS ruling and use it to tax all internet purchases. In less than a month, it won't be worth it to me to make any more PM purchases, so I either have to be content with what I have and what I can order in less than a month, or find a way to get around it. Yeah, I know it's called tax evasion, but technically people have been doing that by not paying tax on internet purchases ever since the internet has allowed people to shop online.
    Gator 45/70 likes this.
  17. Gator 45/70

    Gator 45/70 Monkey+++

    I prefer to think of it as ''Tax Free Trade'' The local .Gov tried to tax sales at the flea markets, The venders just ignored the mandate still to this day!
  18. Prepper12

    Prepper12 Monkey

    It's possible that there may even be challenges to the sales tax of things bought in other states. I'm not a legal expert, but I thought a company had to have a physical presence in the state in order for taxes to be collected. I wonder how this tax will apply when it's just information being passed around rather than physical goods. I have a prepaid phone that I buy minutes for online each year. All the company does is email me a PIN number. Would I have to pay tax on that too?
  19. That was my understanding also, but states are trying to get sales tax without physical presence.
  20. Bandit99

    Bandit99 Monkey+++ Site Supporter+

    Well...crap! I didn't see this coming, never expected to have to pay tax on purchasing money (since I will be purchasing Eagles not a simple chunk of gold). It appears Idaho has what is called a 'Use Tax'... I need to look into this more as I want them to specifically say it is on money also... This is a hit I wasn't counting on... They've got you going and coming, every which way you wonder one needs to leave the country to get ahead in life!

    • If you buy goods on the internet, by telephone, or from a mail-order catalog, sellers might not charge sales tax if they're not Idaho retailers. As the shopper, you're responsible for paying tax directly to the Idaho State Tax Commission if the goods are shipped to you in Idaho.
    • If you buy merchandise in a state where no sales tax is charged – such as Oregon or Montana – you owe use tax if you bring the goods into Idaho.
    EDIT: I might be in luck as Idaho code 63-3622V 'SALES TAX' says
    63-3622V. Bullion. There is exempted from the taxes imposed by this chapter: ..."precious metal bullion" means any elementary precious metal which has been put through a process of smelting or refining..."monetized bullion" means coins or other forms of money manufactured from gold, silver, or other metals..."
    Last edited: Sep 11, 2018
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