Silver Dips Below $23.00/toz; More States Consider Sales Tax Exemptions On Precious Metals

Silver dipped below $23.00/toz yesterday and that's where it is as we are at the end of the week.

That doesn't bother me, however. Whenever silver's spot prices drop, I see that as opportunities to buy more of it. As the old adage says, "Buy low, sell high!"

Speaking of buying, New Jersey has introduced legislation to end sales taxation on precious metals following Mississippi's law ending sales tax on precious metals went into effect.

According to Money Metals Exchange:

Assessing a state sales tax on the purchase of gold and silver is becoming an outmoded, indeed outrageous, practice – but a small number of U.S. states still engage in it.

Several of the remaining seven states that tax all precious metals purchases are presently considering enacting their own exemptions, and just this week Mississippi bureaucrats formally stopped slapping these taxes on citizens.

A culmination of a four-year campaign by Money Metals Exchange and the Sound Money Defense League, Mississippi Governor Tate Reeves signed Senate Bill 2862 in April and, as of July 1, all purchases of gold, silver, platinum, and palladium coins, bars, and rounds are fully exempt from sales tax in the Magnolia State.

Mississippi follows Virginia (2022), Tennessee (2022), Ohio (2021), and Arkansas (2021). Meanwhile, New Jersey and Wisconsin could be the next two states to remove sales taxes from the monetary metals.

In fact, members of the New Jersey assembly unanimously voted last week to pass A5294, sending the bill to the state senate for concurrence. And Wisconsin is expected to hold hearings on an exemption bill in September.

Hawaii, Kentucky, New Mexico, Vermont, Maine, New Jersey, and Wisconsin are the only remaining full sales tax states – and none of them border each other. That means these states are surrounded by tax-exempt states, further increasing the pressure to act.

That's certainly one of the reasons Mississippi passed its sales tax exemption this year. It's embarrassing to the politicians when they see that citizens are taking their business to other states.

Citizens in Hawaii, Kentucky, New Mexico, Vermont, Maine, New Jersey and Wisconsin need to contact their state representatives and get them on the ball to end sales taxation on precious metals.

To read more, go here.