Update in early 2019: We here at SD Bullion have begun charging applicable state sales tax, the vast majority of US states have bullion sales tax exemptions. As well we recently interviewed an experienced financial legislature on this ongoing matter. Have a listen to what a former US Congressman and industry watchdog had to say on this bullion state sale tax matter. It is further reaching than most might think at first glance.
The US Supreme Court just ruled that states can require online tax collection.
This decision possibly ends the disadvantage claimed by brick-and-mortar stores vs online stores. Here we examine how this ruling might affect the bullion industry.
Not merely a story about the Amazon vs Walmart /Targets of the world.
Today's "Wayfair" ruling by the Supreme Court should have effects on all segments of commerce, virtually all industries, including the tiny physical precious metal one we operate within.
The good news is that the ongoing political movement to remove state sales taxes from physical precious metal bullion coins, rounds, and bar transactions has been ongoing for about a decade to date.
The 2008 financial crisis helped spur the movement back towards using constitutional silver and gold coins as savings.
To date, about 37 US states have lessened and or fully exempted bullion and precious metal sales taxes.
Bad news begins that there are still 13 states out there taxing US citizens on the precious metals our founding fathers explicitly cited as being the sole monetary instruments we could protect our property and savings with.
The more bad news is those who reside within those bullion buyers who reside within those 13 slow moving tax loving states, will likely soon no longer be able to skirt around established state tax laws on precious metals now that the Supreme Court has given states the green light to get grabbing at online sales tax cash.
State Tax Laws on Bullion Gold Silver Precious Metal Sales
Here is where we stand in terms of the 50 states and their current tax law situations on physical precious metals.
Please note, do your own due diligence. We do not guarantee the full accuracy of the following information for like all tax laws, they change arbitrarily by human beings.
Alabama - recently exempt.
Alaska - exempt.
Arizona - none.
Arkansas - sales taxes of 6.5% – 9.75% plus an additional local sale and use tax as high as 3.25% per transaction in some instances.
California - sales tax of 7.5% (and that is excluding municipality sales taxes like in Los Angeles). The exemption is on orders at or above $ 1,500.00 USD.
Colorado - none, except local municipality sales and use taxes as high as 7.5%.
Connecticut - sales tax rate of 6.5%. The exemption is on orders at or above $ 1,000.00 USD.
District of Columbia / Washington, D.C. - a sales tax of 5.75%, no exemptions.
Delaware - none.
Florida - sales tax of 6%. Exemption is on orders at or above $ 500.00 USD.
Georgia - none.
Hawaii - none but all sales within the state are subject to a General Excise Tax (GET) of 4 to 4.712%.
Idaho - none.
Illinois - none, the only exception being the South African Krugerrand for which the regular state sales tax of 6.25% is applied.
Indiana - sales tax of 7%.
Iowa - none.
Kansas - sales taxes of 6.5 to 11.25%.
Kentucky - sales tax of 6%.
Louisiana - sales tax of 4 to 11%. Exemption on orders at or above $1,000 USD.
Maine - sales tax of 5.5%.
Maryland - sales tax of 6%. Exemption on orders at or above $1,000 USD.
Massachusetts - sales tax of 6.25%. Exemption on orders at or above $1,000 USD (only exceptions being coins from South Africa and Namibia).
Michigan - none on bullion products at or above 90% purity.
Minnesota - charges a sales and use tax of 6.875%.
Mississippi - sales taxes of 7 to 7.25%.
Missouri - none.
Montana - none.
Nebraska - none.
Nevada - sales taxes from 6.85 to 8.1%.
New Hampshire - none.
New Jersey - sales tax of 7%.
New Mexico - has a Gross Receipts Tax of 5.125 to 8.6875%.
New York - sales taxes of 4 to 8.875%. Exemption on orders at or above $ 1,000.00 USD
North Carolina - none now.
North Dakota - none on .999 fine bullion but there is a sales tax of 5% for non-fine bullion products.
Ohio - now none.
Oklahoma - no tax on fine bullion products but there are sales taxes from 4.5 to 11% on non-fine bullion products.
Oregon - none.
Pennsylvania - none.
Rhode Island - none.
South Carolina - none.
South Dakota - none.
Tennessee - sales taxes of 7 to 9.75%.
Texas - none.
Utah - none.
Vermont - sales taxes from 6 to 7%.
Virginia - sales taxes range from 5.3 to 6% in Virginia. Exemption on bullion orders of over $1,000.00 USD.
Washinton - none.
West Virginia - sales taxes from 6 to 7%.
Wisconsin - sales taxes from 5 to 5.6%.
Wyoming - none now.
Non Bullion State Sales Taxes in 2016
The image above is just a friendly reminder of how much we are taxed in this federal republic of 50 states as of the year 2016.
Much like various Supreme Court rulings and edicts, state tax laws on bullion and precious metal sales are always changing.
With this latest Supreme Court ruling on states being allowed to charge taxes on out of state online sales, we fully expect the online bullion industry to have to begin collecting various state taxes sooner than later.
With prices and premiums low at the moment, now is a good time to be getting your bullion before your state begins making online dealers like us here at SD Bullion add additional charges to your bullion orders.