"The IRS considers these to be capital assets, investments, and expects to collect income taxes when they're sold for a profit," he told the committee. The similarity proves they're assets and not consumer items, he said. Heller said profits from the sale of coins, currency and bullion are reported to the Internal Revenue Service in the same manner as gains derived from sales of stocks, bonds and other securities. "In Arkansas we treat this the same as if you bought a lamp or a tire. "It's not tangible personal property that should be subject to sales tax," he said. #Coin watch codeMark Johnson, R-District 15, of Little Rock, told the committee the state's tax code considered coins, currency and bullion as consumable items rather than investments. "This is less of a tax exemption bill and more of a business development bill," he told the committee. The increased sales grew corporate income tax receipts and caused businesses to hire more employees, which generated higher payroll tax collections. Cities and counties would lose out on $383,000 in local sales tax revenue.īut Heller said Michigan's exemption spurred sales of other collectibles, such as antiques and jewelry, that are subject to sales taxes. The impact statement the state revenue agency provided projected the exemption would result in a $1.15 million loss in collections of the state's 6.5% sales tax for the fiscal year that began July 1. He said forgoing the 9.5% will attract out-of-state dealers who will generate sales tax revenue for the state, city and county. A hotel conference room has become the new venue for what used to draw more than 100 dealers from multiple states. Mason cited the annual show the Tri-Lakes Coin Club hosts in Hot Springs, telling the committee attendance numbers no longer justify holding the event at the Hot Springs Convention Center. Patrick Heller, the owner of one of Michigan's largest coin and precious metals dealers, told the committee national coin dealer associations will only hold shows in states with exemptions. 1, Mason and other local dealers in the city had to collect 9.5 cents in state and local sales taxes on every dollar of a transaction involving coins, currency and bullion, an obligation he said discouraged dealers from the more than three dozen states with exemptions from attending coin shows in Arkansas. The bill passed the Senate last year by a 30-1 margin. Paul Mason, owner of Mason's Coin & Pawn on West Grand Avenue, was part of the coalition of coin dealers that lobbied in support of Act 1109, testifying before the Senate Revenue and Tax Committee last March. State and local sales taxes are no longer levied on sales of coins, currency and bullion in Arkansas, an exemption a local pawnshop owner helped to codify in the state tax code.
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