Nebraska and Oklahoma are the newest states enacting legislation exempting coins and precious metals from sales taxation.
The Industry Council for Tangible Assets (ICTA) asserts 31 states currently grant at least partial sales tax exemptions to coins and precious metals—or have pending legislation that will soon revoke these taxes. Nineteen states currently offer no exemptions.
This disparity is of great concern for coin enthusiasts, investors and bullion buyers who have little choice but to pay sales taxes on these purchases. Yet, similar investment vehicles, such as stocks and bonds, go untaxed.
The notion of slapping a sales tax on transactions where money is the “commodity” being sold is peculiar, implausible and even preposterous. Applying such tax to precious metals and bullion coins, which are substitute forms of money, is, well, illogical.
Continual efforts by ICTA and its supporters, however, have been paying off. The ICTA has made significant inroads in rescinding this tax nationally by aggressively pressing state legislators to level the playing field. In the past 20 months, four states have voted to eliminate the discriminatory taxes.
In spearheading the movement to rescind or block sales taxes, the ICTA has made a persuasive case. Cutting taxes, they argue, benefits not only coin and bullion buyers and sellers, but also the states that take such action. The ICTA convincingly explains that any loss of sales tax revenue is more than offset in tax-free states by the income derived by retaining healthy industry-related businesses and attracting major coin shows and auctions that otherwise might be held elsewhere. The proof: Serious collectors and investors frequently travel to attend coin shows in states that do offer sales exemptions.
Now is the time for all coin and bullion enthusiasts to get behind the ICTA’s nationwide campaign to eradicate sales tax on coins and precious metals. Visit the association’s website or call (410) 626-7005 for more information.