Information regarding State and Federal
Coin Laws and Tax Reporting Obligations
New Mexico - South Carolina
Sales Tax Law:
New Mexico does not have a sales tax. Instead, it has a “gross receipts tax.” This is a tax levied on the business rather than the consumer, like in most states. However, the business often passes the tax onto the consumer by adding it to the selling price. The rate of this tax varies from 5.125% to 8.8675% depending on where the business is located within the state.
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:
While normally known for heavy levels of taxation, New York has created an exemption for sales and use taxes on most precious metals.
According to TSB-M-89 (20)S, “Effective September 1, 1989, precious metal bullion sold for investment is exempt from state and local sales and…use taxes imposed under section 1115(a)(27) of the Tax Law.”
For this exemption to apply, the precious metal bullion must be sold for more than one thousand dollars, “the receipt of consideration given or contracted to be given for the bullion must depend only on the value of the metal content of the bullion; and if applicable, the retailer must be registered as a broker or dealer with the New York Department of State pursuant to the provisions of section 359-e of the General Business Law.”
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:
North Carolina passed a sales tax exemption on precious metals. House Bill 434 exempts “sales of non-coin currency, investment metal bullion, and other investment coins.”
Investment coins is defined as “numismatic coins or other forms of money and legal tender manufactured of the metal under the laws of the United States or any foreign nation with a fair market value greater than any statutory of nominal value of such coins.”
Investment metal bullion is defined as “any elementary precious metal that has been put through a process of smelting or refining and that is in such state or condition that its value depends upon its content and not upon its form.” The statute says that “investment metal bullion does not include fabricated precious metal that has been processed or manufactured for one or more specific and customary industrial, professional, or artistic uses.”
Non-coin currency is defined as “forms of money and legal tender manufactured of a material other than metal under the laws of the United States or any foreign nation with a fair market value greater than any statutory or nominal value of such currency.”
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:
North Dakota has started the process of freeing gold and silver from bureaucratic shackles.
57-39.2-04 (31), “gross receipts from the sale of money, including all legal tender coins and currency, and from the sale of precious metal bullion that has been refined to a purity of not less than nine hundred ninety-nine parts per one thousand and is in such form or condition that its value depends upon its precious metal content and not its form” are not subject to 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:
Ohio law currently levies a 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 Laws:
Senate Bill 862, “sales of gold, silver, platinum, palladium or other bullion items such as coins and bars and legal tender of any nation, which legal tender is sold according to its value as precious metal or as an investment” are exempt from sales taxation.
“Bullion” is defined as “any precious metal, including, but not limited to, gold, silver, platinum and palladium, that is in such a state or condition that its value depends upon its precious metal content and not its form.”
Capital Gains Tax:
Gold and silver are subject to capital gains taxation when exchanged for Federal Reserve notes or when used in barter transactions.
State Sales Tax Laws:
Oregon does not have a general sales tax or a use/transaction 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.
State Sales Tax Laws:
According to the Pennsylvania Department of Revenue, bullion and investment metal is not taxed.
Capital Gains Tax:
Gold and silver are subject to capital gains taxation when exchanged for Federal Reserve notes or when used in barter transactions.
State Sales Tax Laws:
§ 44-18-30, there is a sales tax exemption “from the sale and from the storage, use, or other consumption in this state of precious metal bullion.”
“Precious metal bullion” is defined as any elementary precious metal that has been put through a process of smelting or refining, including, but not limited to, gold, silver, platinum, rhodium, and chromium, and that is in a state or condition that its value depends upon its content and not upon its form.
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:
Title 12, Chapter 36 of the South Carolina Code of Laws, there is a sales tax exemption for “(a) gold, silver, or platinum bullion, or any combination of this bullion; (b) coins that are or have been legal tender in the United States or other jurisdiction; and (c) currency.”
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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