Confusion on tax laws when purchasing gold & silver precious metals

 What State tax laws should you know when purchasing Gold and Silver

Gold and Silver Tax Laws in America

I know that when the average person goes to purchase a new pair of pants or some shoes at the Nike outlet it is clearly recognized that you will pay the state sales tax on the item and it often is done without a second thought. Well with bullion and numismatics the tax laws are not really as clear and simple as that. Not only is there not one universal tax law that encompasses all bullion and numismatic purchases, there is actually different laws depending on what state you are in. We are located in Las Vegas, NV so we are held to the tax law based on our state regulation. Any item with a face value denomination that is priced at more than 1.5% of that face value is taxed, any item without a face value, for example gold and silver bars or generic rounds are not taxable. 

Gold & Silver Tax Planning

Knowing that we have customers in every state it is definitely beneficial for us to make it known that if we ship your purchase over state lines to your address in another state or someone you trust to take delivery of your package out of the state you will not be charged sales tax, instead you just pay the shipping and insurance on your purchase.  We know that the tax law still may seem very confusing and not make much sense so we have included a full list of the states and the tax laws that do or do not charge sales tax on Coins, Paper Money, and/or Precious Metals.  Exemptions will be listed if applicable. Keep in mind that the tax boards are constantly changing the laws so it is all about doing your research.

Below is a good list to start with.

 

Alabama
The State charges 4% on everything, there are also County & City taxes, which can add another 4-5%.
Alaska
No state sales tax, though local governments may still tax.
Arizona
No sales tax collected on Coins, Paper Money, or Precious Metals.
Arkansas
Sales tax is collected on Coins, Paper Money, and Precious Metals.
California
Exemption on Coins and Bullion when over $1500. Paper Money is taxable.
Colorado
Sales Tax on Coins, Paper Money, and Bullion varies by City.  The State does not charge any sales tax.
Connecticut
No sales tax on Coins or Paper Money. Exemption on Bullion when over $1000.
Delaware
No sales tax collected on Coins, Paper Money, or Precious Metals.
District of Colombia
Sales tax is collected on Coins, Paper Money, and Precious Metals.
Florida
No sales tax on U.S. Coins or Currency.  Exemption on Bullion when over $500.
Georgia
No sales tax collected on Coins, Paper Money, or Precious Metals.
Hawaii
General Excise Tax is collected on Coins, Paper Money, and Bullion.
Idaho
No sales tax on Coins or Bullion.  Paper Money is a grey area.
Illinois
No sales tax collected on Coins, Paper Money, or Precious Metals.
Indiana
Sales tax is collected on Coins, Paper Money, and Precious Metals.
Iowa
No sales tax collected on Coins, Paper Money, or Precious Metals.
Kansas
Sales tax is collected on Coins, Paper Money, and Precious Metals.
Kentucky
Sales tax is collected on Coins, Paper Money, and Precious Metals.
Louisiana
Exemption on Coins and Bullion when over $1000. Paper Money is taxable.
Maine
Sales tax is collected on Coins, Paper Money, and Precious Metals.
Maryland
Numismatic items and Bullion are exempt when over $1000.
Massachusetts
Coins, Paper Money, and Bullion are exempt when over $1000.
Michigan
No sales tax collected on Coins, Paper Money, or Precious Metals.
Minnesota
Sales tax is collected on Coins, Paper Money, and Precious Metals.
Mississippi
No sales tax collected on Coins, Paper Money, or Precious Metals.
Missouri
No sales tax on Coins or Bullion, but taxes Paper Money
Montana
No sales tax collected on Coins, Paper Money, or Precious Metals by the State.  There is a 3% Provisional tax in some communities.  See Comments.
Nebraska
Sales tax is collected on Coins, Paper Money, and Precious Metals.
Nevada
Sales tax is collected on anything that sells for over 50% of its “Face Value.” Private Mint Bars and Rounds are exempt.
New Hampshire
Sales tax is collected on Coins, Paper Money, and Precious Metals.
New Jersey
Sales tax is collected on Coins, Paper Money, and Precious Metals.
New Mexico
Sales tax is collected on Coins, Paper Money, and Precious Metals.
New York
Coins and Paper Money are Taxable, Bullion is Exempt when over $1000.
North Carolina
Sales tax is collected on Coins, Paper Money, and Precious Metals.
North Dakota
No sales tax collected on Coins, Paper Money, or Precious Metals.
Ohio
Sales tax is collected on Coins, Paper Money, and Precious Metals.
Oklahoma
Sales tax is collected on Coins, Paper Money, and Precious Metals.
Oregon
No sales tax collected on Coins, Paper Money, or Precious Metals.
Pennsylvania
No sales tax on Coins or Bullion, but taxes Paper Money.
Rhode Island
No sales tax on Coins or Bullion, but taxes Paper Money.
South Carolina
No sales tax collected on Coins, Paper Money, or Precious Metals.
South Dakota
No sales tax collected on Coins, Paper Money, or Precious Metals.
Tennessee
Sales tax is collected on Coins, Paper Money, and Precious Metals.
Texas
Coins and Precious Metals are exempt over $1000. Paper Money is taxable.
Utah
No sales tax collected on Coins, Paper Money, or Precious Metals.
Vermont
Sales tax is collected on Coins, Paper Money, and Precious Metals.
Virginia
Sales tax is collected on Coins, Paper Money, and Precious Metals.
Washington State
No sales tax on Coins or Precious Metals.  Paper Money is taxable.
West Virginia
Sales tax is collected on Coins, Paper Money, and Precious Metals.
Wisconsin
Sales tax is collected on Coins, Paper Money, and Precious Metals.
Wyoming
Taxes vary by city on Coins and Paper Money.  Precious Metals are taxable.

Precious Metals Dealer in Las Vegas

Bullion Purchasing with Sahara Coins

What do many investors gravitate towards?

Panda Gold Bullion

Here at Sahara Coins we carry everything from bullion to high end Numismatics but some of the main products we see a lot of customers gravitate towards are different forms of bullion. Customers are often buying bullion because someone recommended it to them as a way to protect the paper money they have now. We also get a lot of self proclaimed “silver stackers” who may be putting away silver for the instance that they may end up needing to barter with silver as a form of currency, which believe it or not there is currently two states in the US that do except gold and silver bullion as form of payment for goods so I will leave it up to you to decided if the rest of the country or world will follow suit. 

As far as bullion we carry here at Sahara Coins you will find Gold, Silver, Platinum and the occasional Palladium in the case. All of these types of bullion come in many different forms from   We like to advise our customers to purchase a diverse portfolio when it comes to bullion and coinage but as we emphasize, it is always our customer’s decision. To give an example I will explain what I have decided to do with my personal portfolio and a hand full of close clients.  I am definitely partial to silver bullion over gold but I do think that gold is very important to incorporate into my overall portfolio, I would not be going out of line to say that I have kept a 40% gold to %60 Silver ration when I purchase. I have multiple reasons for that with 2 of the major reasons being; one, silver has out performed gold for 3 years running, with the other reason being that I would actually go heavier on the silver but storage can become an issue since $1000 investment in silver definitely takes up more room than a $1000 investment in gold.

Mexico Peso $50 Gold Bullion

coinage to bars with varying purity. I can’t tell you that one type is “better” than another, it all depends on your situation and what end result you are going for.
 

Bullion is a great way to get in and get your feet wet. Getting used to exchanging your dollars into metal and seeing that you are not spending your money on meaningless items that will end up in the trash or worse. You are turning your paper money that has definitely been on the downward trend for quite some time now into a form of protection for your other assets. I will also be introducing you to Semi Numismatics and Numismatics through our blog and our SCU educational media outlet on www.Saharacoins.org because the first step is protecting your current worth with bullion and then we can help you to protect the bullion with an even more stable solution in Numismatics. One last thing we want you to remember from us here at Sahara Coins is this “Your education is more important than your collection itself.”

Gold Coin Dealers

By: Raymond