There's only a handful of states, New Mexico being one of them, who still applies sales and use taxes to gold, silver and other precious metals purchased as investments during this time of high inflation and bank collapses.
New Jersey may soon be joining a majority of states who have eliminated the sales tax on precious metals.
According to Shore News Network:
TRENTON, NJ – A the economy continues to suffer and inflation continues to rise under the Presidency of Joe Biden, many are turning to investments in precious medals to protect their assets.
Under existing New Jersey law, those investments, unlike other credible financial investments are subject to state sales and use tax.
The bill, A5294, would exempt legitimate gold, silver and other precious metal ‘bullion’ from state sales tax. It would also cover the sale of gold coins purchased for investment purchases.
As defined in the bill, “investment metal bullion” means any elementary precious metal that has been put through a process of smelting or refining, including, but not limited to, gold, silver, platinum, and palladium, and that is in such state or condition that its value depends upon its contents and not its form.
The bill also defines “investment coin” as any numismatic coin manufactured of gold, silver, platinum, palladium, or any other metal, including non-precious metals, and having a fair market value of not less than $1,000.
It sounds to me, under this bill, coins not having a value of at least $1,000 will not be exempt from the sales tax. Not everyone can afford coins over $1,000. Most investment coins minted today are below $1,000 in value. If my reading is correct, the bill should be modified so that all investment coins of precious metals should be exempted. The change in the law would be useless for the average citizen unless modified.
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