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Sales tax on coinage
Summary: fas_3006 is facing an issue with eBay charging sales tax on a "Buy it Now" listing for an ancient coin from Rhodes, which should be exempt under Illinois law. jacbarcollectibles and monroe67 suggest that the issue may be due to the category the item is listed under, which eBay uses to determine tax. Despite fas_3006 contacting multiple sellers, the tax issue persists. comics-scifi-collectibles provides information from an AI stating that ancient coins are not exempt, but fas_3006 disagrees, citing the Illinois Department of Revenue's confirmation. Suggestions include contacting eBay through social media for further assistance.
I am trying to make an offer on a "Buy it Now" listing. eBay is adding sales tax to this item, an ancient coin from Rhodes. This is government-issued silver coinage of the ancient state of Rhodes, not a privately issued token, medal, or antique object. Illinois exempts silver coinage issued by a foreign government under 35 ILCS 120/2-5(18).
Illinois law exempts government-issued gold and silver coinage from sales tax under 35 ILCS 120/2-5(18) and 86 Ill. Adm. Code 130.1910(c). The Illinois Department of Revenue has also confirmed that the exemption applies even when the coin has become a rare collectible rather than circulating money.
How can we get the sales tax removed?
As an aside, how does one contact an actual person from eBay (rather than a call center. Trying to resolve this by phone was, not surprisingly, futile.
comics-scifi-collectibles
Mentor2 weeks ago@fas_3006 Just an FYI here's what AI says about tax on ancient coins for delivery to Illinois>
In Illinois, you will likely be charged sales tax on the purchase of an ancient coin from Rhodes. [1]
While Illinois tax laws offer a very broad exemption for investment-grade precious metal bullion and legal tender coinage, ancient coins generally fall outside of these exemptions for two major reasons:
Not Recognized as Modern Legal Tender: Under the Illinois Administrative Code (Section 130.120) and Section 130.1910, a coin must be recognized as active "legal tender or currency of the U.S. or a foreign country" to qualify for a coin exemption. Because ancient Greek coins (such as those from Rhodes featuring the Helios design or rose motifs) are no longer circulating currencies backed by a modern sovereign government, they are legally treated as collectible antiques or curios rather than currency. [1, 2, 3]
Valued for Numismatic Rarity, Not Bullion Content: Illinois exempts gold, silver, and platinum bullion only if it is refined to a purity of at least .980 fine and sold exclusively based on its "precious metal content and not its form". Ancient coins are heavily marked up based on historical rarity, age, and grade (numismatic value). Even if an ancient Rhodian coin is struck in silver or gold, its market value heavily outweighs the raw melt value of the metal, disqualifying it from the bullion exemption. [1, 2, 3]
Consequently, ancient coin purchases shipped to an Illinois address are subject to the standard state retail occupation tax rate of 6.25%, plus any additional local county or municipal taxes depending on your exact delivery zip code. [1, 2]
fas_3006
OP2 weeks agoYour AI is incorrect. The Illinois Department of Revenue has also confirmed that the exemption applies even when the coin has become a rare collectible rather than circulating money.
As I've stated, Heritage, Stack's Bowers, CNG, local dealers... all of them are well aware of the law and do not charge sales tax.
comics-scifi-collectibles
Mentor2 weeks ago@fas_3006 Not "my AI" just google AI. Trying to help out
Your only other option for contacting customer service is social media. However as the other Mentors have stated another factor is the category the coin is listed in.
Contact customer service on social media using a PRIVATE message>
https://www.instagram.com/ebay/
6-6 Pacific Time M-F
fas_3006
OP2 weeks agoI appreciate the pointer to eBay customer service.
jacbarcollectibles
Mentor2 weeks agoeBay cannot resolve this. Sales tax collection depends on the category the item is listed in. If the seller placed the item in a taxable category eBay will collect the sales tax. The seller would have to end the listing and then relist in a non sales tax category for there to be no sales tax collected.
fas_3006
OP2 weeks agoIt was the same story for every seller I checked. I contacted each of them to let them know but all of the evidence points to an eBay issue. Heritage, Stack's Bowers, CNG, local dealers... everyone else gets it right. eBay is alone in attempting to charge sales tax.
monroe67
Mentor2 weeks ago". . . all of the evidence points to an eBay issue."
Part of the criteria on which eBay collects sales taxes is the category in which the item is listed.
The choice of the category in which to list any item belongs to the seller.
eBay does not verify or question the category in the overwhelming majority of listings. eBay relies on all sellers to list their items appropriately.
". . . eBay is alone in attempting to charge sales tax."
eBay attempts to comply with all the laws that pertain to them.
Calculation and collection of sales taxes are laws that pertain to eBay. Only five states do not charge sales taxes; thus, eBay collects sales taxes for 45 states. (Probably also DC and Puerto Rico . . . .)
eBay does not and cannot override the sales tax laws of the 45 states.
IF you do buy something on eBay, and pay sales taxes when you think you should not have had to --
your best source for refund of that sales tax is your own state.
Start with your state's official website.
fas_3006
OP2 weeks ago"IF you do buy something on eBay, and pay sales taxes when you think you should not have had to --
your best source for refund of that sales tax is your own state.
Start with your state's official website."
That was the most unhelpful reply so far. Why should we not expect eBay to get it right in the first place?
monroe67
Mentor2 weeks ago"That was the most unhelpful reply so far."
OK. Having re-read your original post with this question --
"How can we get the sales tax removed?" --
I actually did kinda answer that question with this statement:
"eBay does not and cannot override the sales tax laws of the 45 states."
I thought I was trying to be helpful when I suggested you reach out to your state government to request a refund of any sales taxes you paid.
You know, practical help on how you can soothe the injury of having paid improper sales taxes to the State of Illinois -- by getting that money back from the State of Illinois.
Or at least trying to get your money back from the State of Illinois.
"Why should we not expect eBay to get it right in the first place?"
As I tried to explain -- and as other Community Mentors also tried to explain -- eBay must rely on the information that each seller provides when they (we) create their (our) listings.
Employees of eBay, Inc., simply can NOT study and verify every listing for its precise accuracy.
Sellers are (usually) human beings probably a lot like yourself.
To err is human.
Maybe some sellers routinely err by listing coins which "should" be non-taxable in eBay categories which are taxable.
I guess I'm not quite sure what kind of help you were hoping to get with your post. I don't think I have any more assistance to offer on this thread.
fas_3006
OP2 weeks agoThat's fair. I apologize for my frustration-laden reply and I do appreciate your thoughtful explanation.
I did check the listings and the categories appear correct. What I was hoping for was a pointer to a contact or a method to communicate to eBay that their system is charging sales tax incorrectly in these cases.
In the interim, I did manage to get an email response from eBay and was able to submit the letter from the State of Illinois where they clarify that even ancient coins, if not commemorative or mounted in jewelry, are exempt from sales tax. We'll see what happens from here...
Thanks again for your help.
fas_3006
OP2 weeks agoIt was multiple items from multiple sellers. I did message each of them.