Following Iowa?s lead, the state of Pennsylvania has exempted numismatic transactions from the state?s sales tax effective Sept. 4. The governor signed the legislation into law July 6.
?It is a huge, huge, huge win,? said Diane Piret, industry affairs director for the Industry Council for Tangible Assets.
This will make 27 states with some form of exemption, Piret said. Five of those apply no sales tax at all.
She said Kathy Sarosi successfully saw this process through as the dealer spearhead of the effort to get the exemption passed. She was supported by the Pennsylvania Association of Numismatists.
Two factors make this win especially important, Piret said. The first is that Pennsylvania is a ?major population state.? The second factor is the state is ?one the ANA likes to go to.? A possible future bonus is Pennsylvania?s action may help persuade Ohio to reverse its recently reimposed state sales tax, Piret added.
Exempted from tax are investment metal bullion and investment coins. Investment metal bullion refers to gold, silver, platinum and palladium in its popular investment forms where ?its value depends upon its content and not its form.?
Investment coins are defined as ?numismatic coins or other forms of money and legal tender manufactured of gold, silver, platinum, palladium or other metal … of the U.S. or of any foreign nation with a fair market value greater than any nominal value of such coins.?