To date, 41 states have eliminated sales taxes on gold and silver bullion, including Gold IRA accounts. The only states that continue to levy taxes on the sale of precious metal ingots are Vermont, New Jersey, Maine, Tennessee, Kentucky, Wisconsin, New Mexico, Mississippi and Hawaii. The District of Columbia also taxes physical purchases of gold and silver. To date, 42 states have eliminated some or all of the taxes on the purchase of gold and silver, including Gold IRA accounts.
And there are new bills pending now in five of the remaining eight states, that is,. Tennessee, Mississippi, Kentucky, Hawaii and New Jersey. There is no all-encompassing sales tax in the United States. The 50 individual states have their own tax laws and their own sales tax rates.
. In some states there is no sales tax on precious metals, while in others you'll pay about an additional 10% for every purchase you make. In practical terms, the elimination of taxes on the sale of gold and silver opens the door for people to start using species in regular commercial transactions. If you store your gold and silver bars somewhere other than your home state, be sure to check that location's sales tax rates.
Before the long Memorial Day weekend, Tennessee Governor William Lee signed the House of Representatives bill of 1874 eliminating sales taxes on gold, silver and platinum bullion coins. When you buy your favorite products in gold and silver bars at BGASC, in some cases, you'll have to pay local sales tax on your purchases. Last Friday, the West Virginia legislature overwhelmingly approved an exemption from the sales tax on coins and precious metals (33-0 in the Senate and 90-9 in the House of Representatives). Let's hope they succeed, because reimposing sales taxes on gold and silver has proven to be a debacle.
The legislation would exempt certain investment metals, ingots and coins from sales tax and use. This year, Delegate Pritt introduced House Bill 3135 to take things a step further by eliminating capital gains taxes on solid money and reaffirming gold and silver as money in the state. Thanks to my previous career as a certified public accountant and leading Michigan's efforts to obtain a sales tax exemption for coins and precious metals in 1999, I have been actively involved in these exemption efforts. If the exemption initiatives in all six states succeed this year, only the states of Hawaii, Kentucky, Mississippi, Nevada, New Jersey, New Mexico, Vermont and the District of Columbia will continue to tax transactions in currencies and precious metals.
Investment metal ingot is defined as any elemental precious metal that has undergone a smelting or refining process, including, among others, gold, silver, platinum and palladium, and that is in such a state or condition that its value depends on its content and not on its shape. In effect, states that levy taxes on purchases of precious metals act as if gold and silver weren't money at all. In recent years, the states of Ohio and Louisiana briefly experimented with resuming taxes on purchases of precious metals, only to reverse course when companies, currency conventions and state tax revenues left the state. Right now, 37 states have no state sales tax (Alaska, Delaware, Montana, New Hampshire, and Oregon) or have full or partial exemptions from the state's retail sales tax on precious metal coins and ingots.