PWCC expands its lending activities

[Peter_Spaeth]

Originally Posted by Snowman

When I tried to have cards from my vault sent to my home address in CA, PWCC told me they would have to charge me sales tax unless I could provide them with a CA state resale permit.

Interesting. PWCC isn't making a sale, so I am surprised they feel obligated to do that. I thought sales tax was only collected in connection with a sale.

[Mark17]

Originally Posted by Peter_Spaeth

Interesting. PWCC isn't making a sale, so I am surprised they feel obligated to do that. I thought sales tax was only collected in connection with a sale.

Suppose Biff, in Portland Oregon, registers an LLC called "The Weigh Station, LLC." The service he provides collectors and investors is, he weighs their collectibles.

So, you live in CA and ask PWCC to send your $100,000 worth of stuff. PWCC says they'll need to collect about $8,000 for the state of CA for sales tax. You say, no, you want it sent to Biff in Oregon, which has no sales tax. Biff receives your stuff, weighs it, charges you $50.00 plus the cost of shipping, and sends you your stuff along with a note saying how much it weighs. He collects no sales tax since he wasn't involved in a sale - he simply rendered a service (just like PSA does when they grade cards.)

If Biff can weigh and ship 20 packages a day, he can make something north of $250k a year. And all he needs is to live near a post office, or Fedex or UPS outlet, and have a bathroom scale.