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FYI: EBAY Tax Warning

Just a heads up for anyone thinking of purchasing any strike in ebay's Collectibles/Casino/Strikes section and who live in a state that does not tax the purchase of coins/bullion items like Idaho and Utah. I recently won an ebay listing for a $300 strike and was charged $24.93 sales tax and Idaho does not tax such items. I contacted a representative from ebay but, of course, got nowhere. If strikes are listed in the Coins section, I would not have been taxed but new collectors may not find your listings since strikes are casino related. Here is the conversation I had transcribed below:

Assistant

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4:34 pm
BRYAN has joined the conversation

Hi Robert, this is BRYAN, one of my favourite colleagues. I'll leave you both to it, and I'll be back when you guys are done.
Assistant

I was charged a state sales tax on an item that my state does not tax.

May I have your first and last name please?
BRYAN

Robert Likes

Thanks Bob, for this concern I'll have to transfer you to our specialist okay?
BRYAN

4:36 pm
Mikhail has joined the conversation
Hello my name is Mik with eBay Manage Payments, from my understanding you have a concern about being charged sales tax is that correct?
Mikhail

Yes, I was charged a state sales tax on an item that my state does not tax.

Okay let me take a look into it, what is the order number?
Mikhail

It was ebay listing #313585318680. A collector casino coin made of silver.

The Hello Sailor coin?
Mikhail

Correct. Idaho Code section 63-3622V section (c) indicates that the coin is not taxed.
alright let me take a look into. I can direct you to the web page if you like.

No need Robert.
Mikhail

Just bare with me a bit longer here to see what caused the taxation to happen.
Mikhail

Okay

Thank you
Mikhail

So due to the item being sold as a collectible that is why it is not tax exempt
Mikhail

If this coin was sold under bullion or coins and money it would have not been charged sales tax
Mikhail

So, should the ebay category Collectibles/Casino/Strikes be linked to the Coins category since they are all collectible coins?

since strikes are not used in circulation and bullion can be put into circulation as an actual currency that is why they are separate.
Mikhail

As the bullion dealers always tell me silver is silver. Some strikes are totally composed of silver and are considered bullion others have a brass
rim that some bullion dealers remove so that they can sell the solid silver centers as bullion.

I understand where you got your information, as it stand strikes do not fall into the bullion category, they do fall under collectibles since they come from casinos and are not and have not be in circulation as a form of currency outside of the casino itself.
Mikhail

If they were put into the Coin category, new collectors would have difficulty locating the ebay listings since they are associated with casino
collectibles.

I understand were you are coming when it comes to if they were to be relocated to there
Mikhail

Along with how Idaho determines bullion/ coins being not taxable, strikes would fall under colorized coins /works of art which are taxable
Mikhail

But according to the Idaho code "and which is in such state or condition that its value depends upon its contents and not upon its form"

Yes it also states "but shall not include coins or money sold to be manufactured into jewelry or works of art."
Mikhail

How they are stating it coins and bullion it would be your normal coins that would be in circulation and solid bricks of gold, silver, platinum, rhodium, and chromium
Mikhail

Yet I have been able to purchase colorized coins including the US Basketball commemorative coin on ebay in the coins category without tax.

Alright, well the sales taxes that was applied to the strike is correct, and any strike purchased through casino collectibles will be taxed
Mikhail

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FYI: EBAY Tax Warning
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