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New York City has its bright lights. California has Hollywood and the culture of celebrities. Chicago and St. Louis are gateways, whether travelling east to west, or west to east. Standing tall in the middle of our country is Colorado with the Rocky Mountains spiraling up into the sky. Deep in the south, the state of Arkansas can oftentimes be overlooked. Yes, the President of the United States was born in Arkansas, and eventually became Governor of the state, but even that does not make many pay that much attention to the locale or its residents. The tough economy has been especially hard in the South, in states like Arkansas. Businesses and citizens alike are always looking for better opportunities, and better investments in which to place their excess income, in order to protect them and have a little in reserve for the future. The overwhelming distrust of financial institutions has certainly permeated the hills of the state. Where do they look for a stable investment? Gold and Silver may be the answer to that troubling question.
After the collapse of the economy in 2008, many simply take the cash they earn and stuff it into their pillowcases or bury it in the backyard. While that may be sensible if you do not want to lose anything, you will also never make anything. Gold and silver offer opportunities to invest in a stable product which has a great potential for continued growth and prosperity. Not long ago, you could buy an ounce for gold for $500 or $600 dollars. Now, the price of an ounce of gold is hovering close to $1300 dollars. This makes sense for the people of Arkansas. However, make sure you understand the complete tax implications of such an investment.
Across the United States, local municipalities and governments collect sales and use tax from any transaction. This includes Arkansas. Arkansas has a state wide sales tax of 6.5%. There are no exemptions or waivers for the state sales tax, which means on every purchase of gold or silver you must pay at least this amount in taxes. Unfortunately, in Arkansas, the cities and counties also levy sales tax. It varies from one city to the next, and you should review the local tax code before making any major purchase or investment. In Little Rock, the capitol of Arkansas, the sales tax is 9%, 6.5% state tax, 1% county tax, and 1.5% city tax. In Hope, President Clinton’s birthplace, the sales tax is 9.5%, including 6.5% state tax, 2% county tax, and 1% city tax.
Because of the high sales tax rate in parts of Arkansas, it is important to pay attention to the sales tax rate in the particular city where you plan to buy precious metals. Tax rates for each city can be viewed at www.dfa.arkansas.gov/offices/exciseTax/salesanduse/Documents/cityCountyTaxTable.pdf.
When you make any purchase of precious metals, no matter the amount or size of purchase, you will have to pay some sales tax in Arkansas. Fortunately, this has not lead to a reduction of reputable gold and silver dealers located throughout the state. This is not a highly urban area, so many of the dealers are your local residents, whom you have known all your life, which will not stop them from collecting the sales tax.
Golden Eagle Coins, being an out of state retailer, does NOT have to charge sales tax to Arkansas residents. Browse our selection of tax-free gold and silver products. Please take note that we are not experts on tax issues, and you may be liable to pay local Use tax. Please contact your local tax professional for more information.