If there’s anything most customers want to avoid, it’s paying sales tax. That’s why buying online had such an advantage over brick-and-mortar stores for so long. Did you know that Grand Rapids Coins charges no sales tax on purchases of coins bought in Michigan? There is no sales tax at all on coins or bullion in Michigan so all transactions that we make with our customers – either sales or purchases – are tax free as long as they’re purchased in the state.
Michigan’s Sales Tax Law
Prior to 1999 Michigan did charge a sales tax on transactions of coins, and it meant that there were fewer coin dealers and almost $2 million dollars fewer coin sales per year. That’s because rare coins and precious metals bullion are largely fungible products. If a buyer couldn’t find the coins he wanted in Michigan or didn’t want to pay sales tax, with the exception of very rare coins, it was possible to buy a similar coin from a buyer in a state with no sales tax. Many people who live in states with a sales tax on coins, like Ohio, will now travel to states like Michigan in order to avoid paying taxes of 6-8% of the sale price.
Another reason is that people really do not like to pay sales tax to buy what is, in effect, money. They are already spending money to buy money. They do not want to pay more money on top of that money to buy money. It feels both wrong and absurd.
Fortunately, after a solid effort by coin dealers, Michigan passed a law in 1999 exempting coin sales from sales tax. The law exempts sales of investment coins and gold, silver, and platinum bullion. Investment coins are defined as metal coins issued by a government as currency whose face value is less than the fair market value of those coins. This does not include tokens, paper money, or wampum.
Grand Rapids Coins is happy to do business with coin collectors from all over the United States or the world. You do not have to be concerned about purchasing coins or bullion from us online. We have an excellent reputation we have earned and highly value, and we send our packages certified mail in order to alleviate concerns about shipping. You can shop from your own home or office, choosing the coins or bullion products you would like, then complete the checkout process. We will ship to the destination you indicate. Your package will be fully insured and tracked while in transit to your address.
You may also have coins that you would like to sell. We are happy to buy coins and will evaluate coin collections free of charge. If you’re seeking to sell coins or buy coins or bullion as a part of your overall investment strategy for retirement or wealth building, give Grand Rapids Coins a call. We would love to be your coin dealer.