Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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C

168.0000 COINS AND BULLION—Regulation 1599

Annotation 168.0010

(a) COINS

168.0010 Coins. The sale of coins to an ordinary investor, who purchases them with the hope or expectation that their market value will rise, is a taxable retail sale subject to sales tax. The purchase of coins from an out-of-state dealer is not subject to sales tax, but the use tax will apply to the purchase if the buyer purchases the coins for use, storage or consumption in California. If the buyer engages in the business of selling coins, in any manner, to realize a gain, or profit, no use tax will apply to his purchase. The option to buy coins at a set price at a future date is an intangible contract right and is not subject to sales or use taxation. 12/15/64.