Information regarding State and Federal
Coin Laws and Tax Reporting Obligations
Massachusetts - New Jersey
Sales Tax Law:
Chapter 64H, Section 6 of the Massachusetts General Laws, Massachusetts enacted a sales tax exemption on “sales of one thousand dollars or more of (i) rare coins of numismatic value; (ii) gold or silver bullion or coins; or (iii) gold or silver tender of any nation traded and sold according to its value as precious metal.”
The law notes that “bullion” does not include “fabricated precious metal which has been processed or manufactured for industrial, professional, or artistic uses.”
Capital Gains Tax:
Gold and silver are subject to capital gains taxation when exchanged for Federal Reserve notes or when used in barter transactions.
Sales Tax Law:
General Sales Tax Act, Section 205.54s, “a sale of investment coins and bullion is exempt from the [sales] tax.”
The law defines bullion as “gold, silver, or platinum in a bulk state, where its value depends on its content rather than its form, with a purity of not less than 900 parts per 1,000.” “Investment coins” is defined as “numismatic coins or other forms of money and legal tender manufactured of gold, silver, platinum, palladium, or other metal and issued by the United States government or a foreign government with a fair market value greater than the face value of the coins.”
Capital Gains Tax:
Gold and silver are subject to capital gains taxation when exchanged for Federal Reserve notes or when used in barter transactions.
Sales Tax Law:
Bill H.F. No. 1 into law. Section 17 of H.F. No. 1 provides a sales tax exemption for precious metals bullion.
“Precious metal bullion” is defined as “bars or rounds that are at least 99.9% gold, silver, or platinum by weight, and are marked for weight, purity, and content. Jewelry, works of art, and scrap metal are not exempt.”
Capital Gains Tax:
Gold and silver are subject to capital gains taxation when exchanged for Federal Reserve notes or when used in barter transactions.
Sales Tax Law:
Mississippi levies a 7% sales tax on precious metals purchases.
Capital Gains Tax:
Gold and silver are subject to capital gains taxation when exchanged for Federal Reserve notes, or when used in barter transactions.
Sales Tax Law:
Section 144.815.1, bullion and investment coins are “specifically exempted from all local sales taxes.”.
The Missouri statute defines bullion as “gold, silver, platinum, or palladium in a bulk state, where its value depends on its content rather than its form, with a purity of not less than nine hundred parts per one thousand.” “Investment coins” is defined as “numismatic coins or other forms of money and legal tender manufactured of gold, silver, platinum, palladium or metals with a fair market value greater than the face value of the coins.”
Capital Gains Tax:
Gold and silver are subject to capital gains taxation when exchanged for Federal Reserve notes or when used in barter transactions.
Sales Tax Law:
Montana is one of a few states in the United States that does not levy a sales tax.
Capital Gains Tax:
Gold and silver are subject to capital gains taxation when exchanged for Federal Reserve notes or when used in barter transactions.
Sales Tax Laws:
Legislative Bill 867. Nebraska rolled back its policy on pillaging its people in the form of sales taxation on precious metals purchases. LB 867 states that “sales and use taxes shall not be imposed on the gross receipts from the sale, lease, or rental of and the storage, use, or other consumption in this state of currency or bullion.”
Bullion is defined as “bars, ingots, or commemorative medallions of gold, silver, platinum, or palladium, or a combination of these for which the value of the metals depends on its content and not the form.”
Currency is defined as “a coin or currency made of gold, silver, or other metal or paper which has been used as legal tender.”
Capital Gains Law:
Gold and silver are subject to capital gains taxation when exchanged for Federal Reserve notes, or when used in barter transactions.
Sales Tax Law:
Nevada has started the process of freeing gold and silver from bureaucratic shackles.
Chapter 372 of the Nevada Administrative Code, Nevada enacted a sales tax exemption for coins, “even [if] sold at a premium price, if the purpose of the use of the coins…is as a medium of exchange.”.
Capital Gains Tax:
Nevada does not impose a state income tax on its citizens, so there is no taxation on capital gains on precious metals.
Sales Tax Law:
New Hampshire is one of a few states in the United States that does not levy a sales tax.
Capital Gains Tax:
Gold and silver are subject to capital gains taxation when exchanged for Federal Reserve notes or when used in barter transactions.
Sales Tax Law:
New Jersey has a state wide sales tax of 6.875%. In 2000, the Sales and Use Tax Review Commission said that a sales tax exemption on precious metals purchases “exempt[s] from tax a portion of the collectibles economy, with no policy reason appearing for preferring that portion over another.” New Jersey lawmakers fail to understand that gold and silver are money, not collectibles.
Capital Gains Tax:
Gold and silver are subject to capital gains taxation when exchanged for Federal Reserve notes or when used in barter transactions.
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