Quote:
Originally Posted by raulus
Right. I’ve heard stories from others that if you try to get your items out of the vault shortly after acquisition, then you have to pay the sales tax anyway. Not sure if there is a time limit for how long you need to leave them in, or if your only hope is to sell directly from the vault, or eventually ship to a state with no sales tax.
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True you are Nic. We've had this vault discussion before you started posting on the forum, and I went into it about the idea of removing one's items from a vault after waiting a reasonable period of time to do so. Pointed out to everyone how each state with sales tax has their own specific sales and use tax laws, so you'd want to research the specific state you're in to be sure there isn't something specific in their laws to catch you. Otherwise, I'd said that to my knowledge, no state with a sales and use tax has a specific time deadline or threshold written into their laws stating how long you'd have to own something before moving it into their state and not owe sales/use tax on it.
For example, you live in Oregon, and I'm guessing bought most all your possessions in-state, sans sales tax. So, if you picked up everything and moved to California tomorrow, no California sales tax agent is meeting you at the border or ever going to come looking for you to now collect sales/use tax on all the property you just brought into their state. I used California in my example as it is one of the most onerous states when it comes to state taxes. Also, though no such specific timing deadline/threshold rules for general property or possessions brought into CA exist, their sales/use tax laws do have a very specific timing deadline/threshold for bringing a registered vehicle into CA, of exactly one year. So, if in my example of your family moving to CA from OR, any cars/vehicles you brought with you and re-registered in CA that you had purchased less than one full year earlier, are now subject to CA sales/use tax based on the amount of CA sales tax you would have owed had you originally purchased the vehicle in CA, less whatever sales tax you actually did pay to whatever other state you did buy the vehicle in. But own that car/vehicle for 365 or more days prior to the move to CA, and there is no sales/use tax now due on it to CA.
As I pointed out to everyone, this clearly demonstrates that there is likely no infinite period of time during which a sales/use obligation will or can be imposed on items first put into a vault to escape sales taxes, and later taken out and brought back into an owner's home state that does have sales/use taxes. If you're in CA, I would think this one-year period for escaping sales/use tax on vehicles could very easily be used and crossed over to cards in a vault. For other states, I'd again suggest researching that specific state's sales/use tax laws to see if there are any timing deadlines/thresholds that are mentioned, and that you can then possibly use to determine how long you want to wait before trying to bring items you initially had sent to a vault, home to you.
And as mentioned, this vault thing is really set up more for the flippers/dealers/investors, and not something any true collector normally ever wants to get involved in or with. And that includes potential issues with someone else holding your cards and how these vaults are NOT like bank safe deposit boxes, where if something ever happens to the bank, whatever is in your safe deposit box is always your property, without question, period. I believe it was Adam (Exhibitman) who pointed out to truly safeguard items you have sitting in someone's "vault", you should probably be preparing UCC filings, and continuously updating and filing them with the applicable Secretary of State's office, to truly protect your cards and items being held for you by someone else.