Louisiana bans cash for buying secondhand junk

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D5CAV
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Louisiana bans cash for buying secondhand junk

Post by D5CAV »

http://www.silverdoctors.com/louisiana- ... sed-goods/

I'm sure there are some good reasons for this, but as the old saying goes "bad cases lead to bad laws."

Of course, us.gov hates cash because it can't be tracked or traced for taxes. The rich, who always use credit cards, don't care. The poor now have less options. The key phrase is "including, but not limited to". Police love that phrase. It means it can be extended to just about anything. Anyone take any bets on how long before "including" is extended to "used metal" at an ELGS?
Every person in this state engaged in the business of buying, selling, trading in, or otherwise acquiring or disposing of junk or used or secondhand property, including but not limited to jewelry, silverware, diamonds, precious metals, ferrous materials, catalytic converters, auto hulks, copper, copper wire, copper alloy, bronze, zinc, aluminum other than in the form of cans, stainless steel, nickel alloys, or brass, whether in the form of bars, cable, ingots, rods, tubing, wire, wire scraps, 10 clamps or connectors, railroad track materials, water utility materials, furniture, pictures, objects of art, clothing, mechanic’s tools, carpenter’s tools, automobile hubcaps, automotive batteries, automotive sound equipment such as radios, CB radios, stereos, speakers, cassettes, compact disc players, and similar automotive audio supplies, used building components, and items defined as cemetery artifacts is a secondhand dealer.
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Dub_James
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Re: Louisiana bans cash for buying secondhand junk

Post by Dub_James »

I don't see how disallowing the use of legal tender can ever stand up in court. What's the point of this law?
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JustinR
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Re: Louisiana bans cash for buying secondhand junk

Post by JustinR »

No way that stands up in court.
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mekender
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Re: Louisiana bans cash for buying secondhand junk

Post by mekender »

From my reading of the law, this would apply to someone that bought items at a thrift store for resale...
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Denis
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Re: Louisiana bans cash for buying secondhand junk

Post by Denis »

D5CAV wrote:... us.gov hates cash because it can't be tracked or traced...
I understand that paper currency this side of the big pond is routinely tracked every time it passes through a bank. I'd be surprised if it's otherwise in the US.
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Kommander
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Re: Louisiana bans cash for buying secondhand junk

Post by Kommander »

Denis wrote:
D5CAV wrote:... us.gov hates cash because it can't be tracked or traced...
I understand that paper currency this side of the big pond is routinely tracked every time it passes through a bank. I'd be surprised if it's otherwise in the US.
Tracked with what? The bankers writing down every serial number of every note every day? Some sort of machine that reads every notes number and sends it to the NSA? I can assure you that no one has time to do number one and the machines to do number two, if they even exist, are not at any of the hundreds of banks I've ever done a pick up for.
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Termite
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Re: Louisiana bans cash for buying secondhand junk

Post by Termite »

Gold and silver coins/bullion is exempted.

This is not a new law, it is originally from 2011. The purpose was a feeble attempt to stop the rampant theft of copper and other metals in the form of wiring, plumbing, etc. Also to try to better collect sales taxes.
Recycle yards do pay in cash for small amounts of copper, steel, etc, and they make a copy of your DL.

It does not apply to "garage sales", unless you are having more than one per month on a regular basis. Then you meet the definition of "dealer".

Additionally, the law is widely ignored, and enforcement is spotty at best.
Last edited by Termite on Fri Apr 10, 2015 10:43 am, edited 1 time in total.
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Denis
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Re: Louisiana bans cash for buying secondhand junk

Post by Denis »

Kommander wrote: ... the machines to do number two, if they even exist, are not at any of the hundreds of banks I've ever done a pick up for.
Your banks don't have ATM's? They record the serial numbers of the notes they dispense, and the bank can, when required to, link those notes to the holder of the card used for the withdrawal. That information is routinely used in prosecutions for tax evasion. You think you can avoid VAT by paying your no-invoice house-painter or gardener with cash from the ATM... when he gets audited, the tax man comes calling to his customers too.
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Termite
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Re: Louisiana bans cash for buying secondhand junk

Post by Termite »

Denis wrote:
Kommander wrote: ... the machines to do number two, if they even exist, are not at any of the hundreds of banks I've ever done a pick up for.
Your banks don't have ATM's? They record the serial numbers of the notes they dispense, and the bank can, when required to, link those notes to the holder of the card used for the withdrawal. That information is routinely used in prosecutions for tax evasion. You think you can avoid VAT by paying your no-invoice house-painter or gardener with cash from the ATM... when he gets audited, the tax man comes calling to his customers too.
The USA is not Europe. There is no federal VAT in the USA.

There are sales taxes on the state/local level on goods/services, collected by the merchants. Plumbers, mechanics, etc are required to charge state/local sales tax for services rendered, but collection and payment to the state/local tax board is their responsibility, not the customers.

Internet purchasers are supposed to pay state sales tax on goods purchased online where the sale originates in another state, but it's on the "honor" system. And widely ignored.

Remember: sales tax avoidance is an American pastime, a time honored tradition that goes back to America's founding.
Last edited by Termite on Fri Apr 10, 2015 10:58 am, edited 2 times in total.
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tfbncc
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Re: Louisiana bans cash for buying secondhand junk

Post by tfbncc »

Sounds like they are trying to curb the stolen surplus metals market. Old house plumbing, car parts, etc. Heck, around here, old car batteries will get you $9 a piece at the salvage yard.

Still, it doesn't have a chance to stand up in court. Either cash is legal tender for all transactions or it is not.
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