Last year legislators in Ohio and Arkansas voted to end sales tax on precious metals. Reports are emerging from across the country that more states are considering legislation to remove retail sales tax on investments like gold and silver.
According to Kitco, “This year Kentucky, Mississippi, Hawaii, New Jersey and Tennessee are all considering removing sales taxes on gold and silver purchases as well.”
Which is good news for gold and silver stackers in those states.
Sales tax on precious metals continues to be a contentious issue. State and local sales taxes are generally considered to be “consumption” taxes, like a VAT or IVA which are typically levied on consumable goods.
There are a variety of organizations that are pushing for tax code reforms that would help end some of the confusion people have regarding precious metals as a store of value.