Tennessee May Collect Sales Tax on Exchanges of Gold and Silver Coins
- Sales Tax News
- 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."
photo credit: Oxfordshire Churches via photopin cc
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Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.