State of Michigan sales tax for ebay purchases

**softailrider** · January-22-20, 12:05 PM

Evidently eBay has started charging 6% Michigan sales tax. I purchased a coin and when it came time to checkout I got a big surprise. I had agreed to buy the coin and I didn’t want to back out so I completed the transaction, if I had known sales tax was going to be charged I wouldn’t have bid to begin with. I don’t think coins are subject to sales tax when you buy them here in person in state. Looks like it began January 1 of this year. Didn’t know that.

**rb336** · January-22-20, 12:30 PM

If you buy ANYTHING other than food or newspapers/magazines in-state, it is subject to sales tax.

**Johnnny5** · January-22-20, 02:52 PM

Originally Posted by rb336

If you buy ANYTHING other than food or newspapers/magazines in-state, it is subject to sales tax.

There are other exceptions and precious metal bullion is among them [[Like gold or silver coins). There are also exceptions for businesses buying for resale, non-profits such as schools and others.

I buy and sell a large number of items on Ebay and what has recently changed is that Ebay now forces sellers to collect sales taxes [[In most states) and actually collects them on the sellers behalf if they do not [[Even on interstate sales) Prior to the change Michigan sellers were obligated to pay sales taxes to the State of Michigan if the buyer was in Michigan, but Ebay didn't enforce it. Sellers were not obligated to charge out of state sellers sales taxes, but those buyers may have legal obligations in their home state [[Use taxes).

The issue is most buyers were completely ignoring their use tax obligations and states were losing a bundle. Now that so much retail is now online, the states are finally closing up the loopholes even with interstate sales.

**Johnnny5** · January-22-20, 02:56 PM

Also, if you've been charged Michigan Sales taxes on an non-taxable item, I'm pretty sure there's a way to recoup it when you file your Michigan tax return. It's probably not worth the effort on a few small items, but if you're buying a lot it may be.

**softailrider** · January-22-20, 10:07 PM

Originally Posted by rb336

If you buy ANYTHING other than food or newspapers/magazines in-state, it is subject to sales tax.

No that’s not true, as the previous poster said, gold and silver bullion coins are not subject to sales tax, they used to be, but that was changed about 15 years ago. I’m not sure about “rare” coins, but I sure never paid tax buying them on line or at local shows in the past.

If I knew I was going to be charged tax on this particular purchase I wouldn’t have bid on it to begin with.

**jiminnm** · January-23-20, 11:49 AM

Originally Posted by rb336

If you buy ANYTHING other than food or newspapers/magazines in-state, it is subject to sales tax.

The law changed a couple of years ago and many states now charge sales tax on internet purchase.
https://smallbiztrends.com/2019/01/l...sales-tax.html

**rb336** · January-23-20, 12:42 PM

Originally Posted by softailrider

No that’s not true, as the previous poster said, gold and silver bullion coins are not subject to sales tax, they used to be, but that was changed about 15 years ago. I’m not sure about “rare” coins, but I sure never paid tax buying them on line or at local shows in the past.

If I knew I was going to be charged tax on this particular purchase I wouldn’t have bid on it to begin with.

I just looked at the SoM website. I see no exemption listed for any kind of coin. Precious metals as raw materials are exempt.

**softailrider** · January-23-20, 03:33 PM

Originally Posted by rb336

I just looked at the SoM website. I see no exemption listed for any kind of coin. Precious metals as raw materials are exempt.

if you buy a Gold or Silver American eagle coin, they are coins with a dollar value on them and they’re tax exempt. If you buy Canadian or other country gold or silver coins there’s no tax on them either.

**Meddle** · January-23-20, 04:37 PM

GENERAL SALES TAX ACT [[EXCERPT)
Act 167 of 1933

205.54s Sale of investment coins and bullion; exemptions; definitions.

Sec. 4s.
[[1) A sale of investment coins and bullion is exempt from the tax under this act.
[[2) As used in this section:
[[a) "Bullion" means gold, silver, or platinum in a bulk state, where its value depends on its content rather than its form, with a purity of not less than 900 parts per 1,000.
[[b) "Investment coins" means numismatic coins or other forms of money and legal tender manufactured of gold, silver, platinum, palladium, or other metal and issued by the United States government or a foreign government with a fair market value greater than the face value of the coins.

https://www.legislature.mi.gov/%28S%...me=mcl-205-54s

**softailrider** · January-23-20, 05:23 PM

Originally Posted by Meddle

GENERAL SALES TAX ACT [[EXCERPT)
Act 167 of 1933

205.54s Sale of investment coins and bullion; exemptions; definitions.

Sec. 4s.
[[1) A sale of investment coins and bullion is exempt from the tax under this act.
[[2) As used in this section:
[[a) "Bullion" means gold, silver, or platinum in a bulk state, where its value depends on its content rather than its form, with a purity of not less than 900 parts per 1,000.
[[b) "Investment coins" means numismatic coins or other forms of money and legal tender manufactured of gold, silver, platinum, palladium, or other metal and issued by the United States government or a foreign government with a fair market value greater than the face value of the coins.

https://www.legislature.mi.gov/%28S%...me=mcl-205-54s

Thank you, that confirms my suspicion. I paid sales tax on a tax exempt item. Not going to do that again.