Tennessee May Collect Sales Tax on Exchanges of Gold and Silver Coins
- Jan 11, 2013 | Gail Cole
The Attorney General of Tennessee has decided that it is legal for the state to collect sales tax on exchanges of gold and silver coins in the event that the coins are "exchanged based on their intrinsic value as precious metals or as collectible items, rather than their value as legal tender as set by Congress." (See Tenn. Code Ann. §§ 67-6-101 to -907).
The distinction is an important one, for were sales tax to be collected on the coins value as legal tender, the state would "impinge on Congress's power to establish a uniform legal tender… ." As the attorney general's opinion makes clear, "Tennessee does not impose such a tax."