You Can Help Protect Coin/Bullion Sales Tax Exemptions

Collectors and dealers appreciate being able to purchase precious metals bullion, coins, and currency if they do not hate having to pay sales or use tax to do so. Almost every state either has no state sales tax at all (Alaska, Delaware, Montana, New Hampshire, and Oregon) or has partial or complete sales tax exemptions for such items.

The jurisdictions that do not yet have any such exemptions are Hawaii, Maine, New Mexico, Vermont, Washington, and the District of Columbia.

Many state governments are now scrambling for increased funding following the end of higher federal revenue sharing during the COVID pandemic. Therefore, existing tax credits and sales tax exemptions have received greater scrutiny for possible repeal.

In 2025, the state of Maryland (effective July 1, 2025) severely narrowed its exemption to apply to transactions of $1,000 or larger conducted only at the Baltimore Convention Center. The state of Washington completely repealed its existing exemption, effective Jan. 1, 2026.

This year, there were bills considered in the legislatures in Colorado, Nebraska, and New York to repeal existing exemptions.  The Colorado and Nebraska legislative sessions have ended without repealing the coin and bullion exemptions.  The New York legislature is scheduled to conclude this year’s session on June 10 and has not yet taken action to revoke the existing exemption (keep your fingers crossed). 

The sales tax exemption in Virginia is due to expire on June 30, 2026, unless it is extended.  The state’s House of Delegates and Senate each have approved bills that would extend the exemption, but they differ on other provisions within their bills that don’t affect this exemption.  Hopefully, this will be resolved and enacted before the end of this month.

Bills to reinstate the Maryland and Washington coin and bullion sales and use tax exemptions were introduced in their respective legislatures this year.  The Washington legislative session for 2026 ended without taking any action on that bill.  In Maryland, Senate Bill 309 was unanimously approved in both chambers and then signed into law by the governor on May 26, 2026.  It restores the prior statewide sales and use tax exemption for all transactions of $1,000 or more, effective July 1, 2026.

In early 2025, Alaska HB1 was introduced to exempt gold and silver coins and bullion from a local city or borough sales tax.  The two largest cities, Anchorage and Fairbanks, do not impose such a tax, but more than 100 other jurisdictions do.  This bill was passed by the legislature and became law on May 29, 2026, without the governor's signature.  It becomes effective on August 28, 2026.

These efforts to gain and to retain or restore sales and use tax exemptions for precious metals bullion, coins, and currency take the effort of multiple people and funding.  There are some no-cost actions that take almost no time, where collectors and dealers (that means you!) could help increase the prospects of adding or protecting such exemptions.

For collectors (those for whom their primary source of income is not from the sale of numismatic material), they can become a member of the Concerned Collectors Coalition within the National Coin & Bullion Association (NCBA).  There are no dues, but members are asked to identify their state and federal representatives where they live and work.  Multiple times, a collector has become aware of pending legislation before NCBA staff did, alerting the organization to take action earlier than otherwise.  Also, some Coalition members might have personal relationships with one or more legislators that might become useful in the future.  When legislation was introduced in Nevada in 2025 to expand (not yet successful) the scope of the coin and bullion sales tax exemption, Coalition members in that state were notified, and some testified in support before the legislative committee that held hearings on the bill.

Dealers in states that have added or expanded bullion, coin, or currency sales tax exemptions almost always enjoy a surge in sales volume, often resulting in hiring more staff.  Further, some existing businesses in those states, such as jewelers or antique stores, have expanded into bullion and numismatics.  Lastly, there tends to be an increase in the number of coin shows and the attendance at such shows once a state adopts a sales and use tax exemption.

So, dealers in the states of Alabama, Arkansas, Kansas, Kentucky, Indiana, Mississippi, New Jersey, Ohio, Tennessee, Virginia, West Virginia, Wisconsin, and Wyoming are asked to write a letter touting how the enactment of a sales and use tax exemption has positively impacted their business, whether it is increased sales, more staff, greater attendance at in-state coin shows, adding more locations, and the like.  One dealer who wrote such a letter mentioned two other improvements: an increase in other merchandise sold that was subject to sales taxes (such as jewelry, other collectibles, and hobby supplies), and also that he was able to sell inventory to retail customers at a slightly higher profit margin than he had formerly primarily sold wholesale.

These letters should be addressed to the National Coin & Bullion Association to add to the ammunition available to support new exemptions and defend existing exemptions that are under scrutiny.  I’m confident that if just five dealers in each of the states listed in the previous paragraph wrote such a letter, it would make gaining and protecting such exemptions almost automatic.  By working together to help dealers and collectors across the country, it also helps the dealers who write such letters.

Incidentally, an unforeseen benefit to the public of state government adopting such sales tax exemptions is a decrease in consumer price gouging, the selling of counterfeits, or fraud.  There are many people who would prefer to deal in person rather than online or by mail, or who would like to have a local expert evaluate what they have before they conduct a transaction.

The more members that join the NCBA’s Concerned Collectors Coalition and the more testimonial letters that NCBA can add to our ammunition to support new exemptions and retain existing ones, the better the prospects for success in future efforts.  Thank you for any help you can provide.  Go to www.ncbassoc.org for more information.

Note: As many of you already realize, I have personally worked on efforts to expand and retain precious metals bullion, coin, and currency sales and use tax exemptions for more than 30 years.  In various capacities, I have helped gain or expand exemptions in more than 20 states.  I am currently the unpaid volunteer Industry Issues Advisor for the NCBA, where my efforts focus on these sales and use tax exemptions.  This column is not an official NCBA document.  

Last time I asked—Which person depicted on today’s U.S. currency issues was not born in what is now the United States of America?  The answer is Alexander Hamilton, depicted on the $10.00 Federal Reserve Note.  He was born in Charlestown, Nevis, in the British Leeward Islands in the Caribbean Sea, now the nation of Saint Kitts and Nevis.

Here is this week’s question.  Which person depicted on U.S. paper money was born in Cadiz, Spain?  Come back next week for the answer.

Patrick A. Heller was honored as a 2019 FUN Numismatic Ambassador. He is also the recipient of the American Numismatic Association 2018 Glenn Smedley Memorial Service Award, the 2017 Exemplary Service Award, the 2012 Harry Forman National Dealer of the Year Award, and the 2008 Presidential Award. Over the years, he has also been honored by the Numismatic Literary Guild, Professional Numismatists Guild, National Coin & Bullion Association, and the Michigan State Numismatic Society. He is the communications officer of Liberty Coin Service in Lansing, Michigan, and writes “Liberty’s Outlook,” a quarterly newsletter on rare coins and precious metals subjects. He now volunteers with the National Coin & Bullion Association as its Industry Issues Advisor.  Past newsletter issues can be viewed at www.libertycoinservice.com. Some of his radio commentaries, "Things You ‘Know’ That Just Aren’t So,” and “Important News You Need To Know,” can be heard at 8:45 a.m. Wednesday and Friday mornings on 1320 AM WILS in Lansing (which streams live and becomes part of the audio archives posted at www.1320wils.com).

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