From the Feb. 14, 2020, Numismatic News E-NewsLetter
Are you concerned about the ever-increasing tax requirements that affect coin dealers? What impact do you think it will have on the hobby?
Here are some answers sent in from our E-Newsletter readers.
I used to be a part-time dealer for a few years; it wasn't a business and I wasn't in it for the money. To me it was a hobby, I sold extra coins to buy those I needed for my own personal collection. I collected Jefferson Full Steps nickels so I bought bags and tons of BU rolls to sort out to cherry-pick what I wanted and sold the rest. In the long run, I lost money. With new tax laws, it will run off the small hobbyists like me, however, those in it for the business will just simply pass on the extra expense. It could affect the coin market but time will tell.
If you are referring to the sales tax, it will affect the business and the hobby in general. I have always purchased coins and paid for them with no tax. Now, in our state, they are required to charge tax on rare coins, tokens, and bullion. The biggest problem is that when a collector goes to sell they will either inflate the price to recoup the tax amount or they will make less on the item. The dealers do not have to pay a tax when they purchase a collection but will be in a situation of charging tax when they resell. It will hurt the young and new collectors the most.
Increasing tax requirements are negatively impacting the numismatic
hobby. It is as pronounced an effect as is the aging collector
community, especially given many youths are less interested in material
possessions and more focussed on digital and consumables (like changes
of clothing due to evolving styles each year). Eventually, the
government tax grab will kill the industry, shows, etc., and the
biggest losers will be the government, as they invest nothing and take
all the cream.
Timmons, Ontario, Canada