Collectible / Gold and Silver State Sales Taxes in California
California Laws and Regulations
The State of California requires the collection of use taxes on certain products sold by Silver.com and delivered to a California address. These taxes must be collected on (1) nonmonetized bullion made from copper, platinum, or palladium; (2) monetized bullion, nonmonetized gold or silver bullion, or numismatic coins if the total amount of a single sales transaction is less than $1,500; (3) accessory items; and (4) processed items. All other products sold by Silver.com are exempt from these taxes.
The following definitions apply to products on which taxes must be collected in California:
- Nonmonetized Bullion. Bullion which has been smelted or refined and has a value dependent primarily upon its precious metal content and not upon its form.
- Monetized Bullion. Coins or other forms of money manufactured of gold, silver, or other metal and heretofore, now, or hereafter used as a medium of exchange under the laws of California, the United States, or any foreign nation. The medium of exchange must have had a legal status equivalent to legal tender.
- Numismatic Coins. Coins which have an external value above and beyond the base value of the underlying precious metal, due to the item’s rarity, condition, age, or other external factor.
- Single Sales Transaction. Determined per invoice, and not on a line-item basis.
- Accessory Items. Items such as holders, tubes, coin flips, and apparel.
- Processed Items. Precious metals that have been processed by third parties into items that are valued on more than their precious metal content, such as statues or colorized coins.
Use taxes in California are calculated at checkout on the Silver.com website based on (1) the taxability of products sold by Silver.com in California set forth above, and (2) the specific tax rates established by the taxing jurisdiction of the delivery address in California.
Silver.com began collecting use taxes in California on April 1, 2019. Our use tax license number in California is 257602304.
If you are a California-based reseller and wish to file a Reseller Certificate with Silver.com, please download the California Reseller Certificate form here. Once you have filled out this form, either email it to firstname.lastname@example.org; or mail it to Silver.com, Inc., 11700 Preston Road, Suite 660153, Dallas, TX 75230. Once we receive your completed Reseller Certificate, we will enter it into our system, and you will not be charged use taxes on future orders as long as your Reseller Certificate remains valid and in force.
Please note: The above is not a comprehensive description of sales tax laws and requirements in the State of California. It is only intended to provide the reader with a brief overview of those sales tax laws and requirements currently in effect in the State of California that relate to the reader’s transactions with Silver.com. If you would like to research the sales tax laws and requirements in the State of California, we suggest you visit the California Tax Service Center located at https://www.taxes.ca.gov/.