Save thousands every year by switching your sales to Silver Dollars
Scholley, Susan wrote:
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> Dear Mr. Hansen:
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> Let me first clarify that the Legislative Counsel Bureau (LCB) does not give legal advice to members of the public. The Research Division assists members of the public in locating information on a wide variety of topics but we are not legal authorities on the tax or currency questions you have.
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> The e-mail you reference was responding to a question taken over the phone from a legislator’s staff person on behalf of a constituent. In preparing the response, I contacted the Nevada Department of Taxation for assistance on the question of the sales tax implications, if any, of using silver dollars to pay for goods or services. It appears that you have a copy of the e-mail response sent to the legislator’s staff person.
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> Please note that the response is very general (given the broad nature of the question) and is in no way a legal opinion or comprehensive statement on the general topic. Moreover, I was not provided any specific facts nor was I advised that the question related to a matter in litigation. Therefore, if you need direct confirmation of a particular fact or an opinion or additional information on this topic, you are advised to contact the Department of Taxation at (775) 684-2000.
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> Thank you.
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> ___________________________
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> Susan Scholley
> Chief Principal Research Analyst
> Nevada Legislative Counsel Bureau
> Telephone: (775) 684-6825
> Fax: (775) 684-6400
> sscholley@lcb.state.nv.us
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> From: Christopher Hansen [mailto:christopher@ubernet.net]
> Sent: Friday, October 03, 2008 8:24 PM
> To: Scholley, Susan
> Subject: Silver Dollars
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> Dear Susan Scholley,
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> I am in the middle of a lawsuit that deals with the issue of how the State of Nevada handles silver dollars v Federal Reserve Notes.
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> I do not trust email that have been forwarded to me because they can be faked. I would like you to send me an email that states:
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> Assuming that a transaction is taxable under Nevada law (e.g., purchase of an item), the Department advises that a silver dollar is considered the same as a dollar and would not be treated differently than payment by a one dollar bill.
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> Thank you. I would not want to include that statement if you had not stated it so I wanted to be sure you actually wrote it.
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> One other question I hope you can answer. Will a silver dollar be treated specifically the same as a “one dollar” Federal Reserve Note. I ask because a United States note (a one dollar bill) is different, according to the United States Treasury Website, than a Federal Reserve Note.
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> Thank you in advance for the conformation and answer.
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> Christopher Hansen
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> Dear Michelle:
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> I checked with the Department of Taxation on the question of whether payment in silver dollars affects the potential State sales or use tax liability of the person receiving such payment.
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> Your question (I think) asked about payment for services with silver dollars and I should point out that Nevada does NOT impose sales or use taxes on services. But, assuming that a transaction is taxable under Nevada law (e.g., purchase of an item), the Department advises that a silver dollar is considered the same as a dollar and would not be treated differently than payment by a one dollar bill.
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> Of course the wisdom of using silver dollars to purchase items is questionable since the coin would likely be worth more than a dollar to a coin dealer.
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> Please note that this response is in the context of State sales and use taxes and does not address any federal income tax issues. For answers to questions relating to federal income tax liability, the constituent should be directed to the IRS or www.irs.gov for assistance.
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> I hope that is helpful. I am out of the office next week but will return Oct. 7th so if this answer leads to more questions, please do not hesitate to contact me at (775) 684-6484 or via e-mail. If you need more immediate assistance, please call (775) 684-6825.
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> ___________________________
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> Susan Scholley
> Chief Principal Research Analyst
> Nevada Legislative Counsel Bureau
> Telephone: (775) 684-6825
> Fax: (775) 684-6400
> sscholley@lcb.state.nv.us