Gold Sales Tax by US States: ICTA's Jimmy Hayes

Another sideways week for the monetary precious metals.

The spot price of gold appears to again be closing just above $1,300 fiat Federal Reserve notes per troy ounce.

While the silver spot price appears to end this week, relatively flat around the $15.35 per troy ounce mark in fiat US dollar terms.

This week we will be doing a bit coverage on last summer’s US Supreme Court bullion tax related ruling which now has reached the online bullion dealer marketplace.

We have a mix of Bad News, Good News to cover in our video this week.

As well, we will also interview the Executive Director from our industry’s largest watchdog groups to better understand US state sales tax implications ongoing.

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Welcome back to this week’s Metals and Markets podcast, I am your host James Anderson of SD Bullion.

Before we bring on this week’s guest, I want to give you all a bit of background on the state bullion sales tax matter at hand.

Policy within this industry used to be you only had to collect state sales taxes within the states you had nexus in, or some sort of physical office or employee presence in.

My having worked in the state of California for many years when I began in this bullion industry, we used to have to collect state sales taxes on bullion deliveries within California for all bullion orders of less than $1,500 fiat US dollars.

Adding to this website programming complexity was also charging applicable, often unique local California county taxes on top of the flat 7.5% California state tax at the time.

This required our being on top of all 58 California county local tax laws.

Needless to say, our website programmer and tax law service providers had their work cut out for them.

At the time, the general industry practice for bullion sales outside of your state was that it was incumbent on the buyers of bullion in their respective states and counties, to know and comply their local state and county tax laws. And to rectify whatever state and county taxes they may have perhaps owed via online bullion purchases year in year out.

Well, that is changing.

Moving ahead to more recent times, in the middle of last summer 2018. The US Supreme Court in an attempt to perhaps better help level the playing field between the Amazon’s of the world and local brick and mortar stores, ruled in essence that all online sellers or exchangers of virtually any goods or services across state lines are now responsible for collecting and paying local state taxes of the goods or services rendered to customers. The onerous is now on all online businesses offering services in the USA to know all fluctuating US state and US state county tax laws.

Yea, we know first hand. It's a ton of work and monumental task to comply with this.

Well for the bullion industry there is a bit of GOOD NEWS and BAD NEWS with this trend change of online bullion state and county sales taxing.

The GOOD NEWS is that today, more than half of the states in the Republic of these United States have full exemptions on bullion sales taxes. States like Ohio, Pennsylvania, North Carolina, and many others. They have full state tax exemptions for bullion sales to respective state residents.

The BAD NEWS remains there are a handful of other states who have varying degrees of taxation on bullion or collector coin numismatics. For instance states like Kentucky, New Jersey, Mississippi, Wisconsin… they and many more have variations of state taxes on bullion, numismatics, even coin accessories.

In these here show notes, I will leave you some links so you can learn more about your respective bullion state sales tax situation regarding not only bullion but other items, in case you want to dig into deeper details.

Gold Silver Bullion State Sales Taxes?

The bottom line is this.

In 2019, if you are a retail bullion dealer or conduit for any online bullion sales of any sort, you’d better be collecting applicable state sales taxes now or save a war chest perhaps risking the moment some state representatives come knocking at your door asking for their cut of their respective state's sales revenue.

Of course, this adds not just complexity but costs for anyone seeking to comply and break the seemingly exponentially growing laws of the land.

Moving onwards to our guest this week.

His name is Mr. Jimmy Hayes, he recently became the Executive Director of the Industry Council for Tangible Assets.

Often known by its abbreviation IC-TA, the Industry Council for Tangible Assets (ICTA) is a 501(c)(6) nonprofit association dedicated to the rare coins, paper money, and precious metals industry now for over 30 years.

ICTA exists to promote and safeguard the interests of its members, serving as the industry watchdog to maintain an appropriate and favorable legislative and regulatory climate in the U.S.A. and all 50 states. The association provides a medium through which its members may confer, consult, cooperate with, and educate government and its agencies to achieve solutions to problems affecting their businesses.

The following discussion is between myself and Jimmy Hayes the current Executive Director of ICTA. As you will be able to tell quite quickly, Mr. Hayes is an experienced and sharp long time practicing financial lawyer, a former 10 year US Congressman, and co-author of the current Louisiana banking code.

Jimmy was gracious in taking time to give us his thoughts on this state tax law matter, and so embedded in the video is our discussion from yesterday.

You can visit the ICTA Website here and do consider supporting their work and difficult tasks at hand.

Thank you for visiting us here at SD Bullion.

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