On last week’s Metals and Markets podcast, SD Bullion’s James Anderson talked with Industry Council for Tangible Assets (ICTA) Executive Director Jimmy Hayes about changing bullion sales tax rates for gold and silver in various U.S. states. In his introduction to the podcast, Anderson summarized the ups and downs associated with tax changes in the bullion industry as a result of last summer’s U.S. Supreme Court bullion tax-related ruling :
The good news is that today, more than half of the states in the Republic of these United States have full exemptions on bullion sales taxes. States like Ohio, Pennsylvania, North Carolina, and many others. They have full state tax exemptions for bullion sales to respective state residents.
The bad news remains there are a handful of other states who have varying degrees of taxation on bullion or collector coin numismatics. For instance states like Kentucky, New Jersey, Mississippi, Wisconsin. . . they and many more have variations of state taxes on bullion, numismatics, even coin accessories.
Before introducing his guest, Anderson gave a warning to retail bullion dealers and online bullion intermediaries:
The bottom line is this.
In 2019, if you are a retail bullion dealer or conduit for any online bullion sales of any sort, you’d better be collecting applicable state sales taxes now or save a war chest perhaps risking the moment some state representatives come knocking at your door asking for their cut of their respective state’s sales revenue.
Of course, this adds not just complexity but costs for anyone seeking to comply and break the seemingly exponentially growing laws of the land.
The full podcast with James Anderson and Jimmy Hayes can be viewed below:
ICTA is a 501(c)(6) tax-exempt trade association that represents the coin, currency, and precious metals industries. ICTA is supported solely by dues and donations. To join and/or learn more about ICTA, you can visit their website.