Congratulations to the Industry Council for Tangible Assets on its victory in Louisiana.
Thanks to ICTA and the Louisiana Professional Coin Dealers Association (LPCDA), a sales tax exemption returns to the state.
As of Oct. 1, 2017, precious-metals bullion sales will not be subject to the state sales tax as well as many numismatic transactions.
A previous exemption had been revoked as of April 1, 2016, during a state budget crisis.
According to ICTA, the sales tax had been raised from 4 percent to 5 percent and all exemptions revoked April 1-June 30, 2016.
At that point the state sales tax was reduced from 5 percent to 3 percent for the period July 1, 2016, to June 30, 2018.
The latest victory eliminates that tax.
“We are very pleased that the Louisiana exemption is now restored,” said ICTA executive director Kathy McFadden.
“We thank the Louisiana Professional Coin Dealers Association, lobbyist Randy K. Haynie, Louisiana representative Paul Hollis, ICTA legislative consultant and former U.S. congressman Jimmy Hayes (Washington Matters), ICTA members, and everyone who helped make this exemption a reality," she said.
The win was not easy to achieve in the legislature, according to Rep. Stephen Dwight, lead author of the repeal bill.
“The collaborative efforts of coauthors Rep. Mark Abraham, Rep. Larry Bagley, Sen. Jean-Paul Morrell and Sen. Gary Smith convinced them,” he said.
Coin collectors and investors do not like paying sales tax on their purchases.
They take their business to tax friendly states.
Louisiana has now returned to that fold.
“We’re also grateful to the legislature for exempting all coin shows in our state and for exempting numismatic coins valued under $1,000 sold in our stores,” said LPCDA president Louis Pizzolatto.
“Louisiana is now eligible to host a large national coin show such as the American Numismatic Association World’s Fair of Money,” he explained.
In the language of the new law, specifically exempted were platinum, gold, or silver bullion that is valued solely upon its precious metal content whether in coin or ingot form.
Also exempted were numismatic coins that have a sales price of no more than $1,000 sold in shops and numismatic coins sold at a national, statewide, or multi-parish numismatic trade show.
Obviously, a numismatic purchase for $1,001 would best be done at a coin show to legally avoid the sales tax.
Perhaps the American Numismatic Association and other organizations will oblige by filling up the state’s events calendar.
I hope so.
For more details and the text of the law, see the ICTA website.
Buzz blogger Dave Harper has twice won the Numismatic Literary Guild Award for Best Blog and is editor of the weekly newspaper "Numismatic News."
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