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Ohio Considers Sales Tax Exemption for Bullion, Coins

  • Aug 20, 2015 | Gail Cole

 Ohio considers exemption for investment bullion.

Update, 6.16.16: It took time, but it's done. Beginning January 1, 2017, investment bullion and coins are exempt from Ohio sales and use tax. Learn more.

If you live in Ohio and yearn to invest in bullion and coins, you may be in luck. Two bills currently under consideration in the Ohio Legislature seek to make investment bullion and coins sales tax-exempt.

If enacted, this would not be the first time metal bullion and investment coins have been exempt from Ohio sales tax. Such sales were made exempt in July 1989 and then sales and use tax was reinstated in July 2005.

According to the fiscal analysis for House Bill 16, the exemption would deprive the state of approximately $0.2 million in revenue. However, “an unknown share of sales of investment bullion and investment coins occur through remote sales (catalogs, telephone, Internet sales), and that share may be growing. A portion of those remote purchases likely escape sales and use taxes already.” Several states, such as Virginia, exempt sales of bullion when the total sales price for a single transaction exceeds a certain amount.

The bills

House Bill 26, approved by the House and passed to the Ways and Means Committee, would “amend section 5763.02 of the Revised Code to exempt from sales and use taxes the sale or use of investment metal bullion and coins.”

Investment metal bullion is defined as follows:

“[A]ny 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 which is in such state or condition that its value depends upon its content and not upon its form.”

It does not include “fabricated precious metal that has been processed or manufactured for one or more specific and customary industrial, professional, or artistic uses.”

Investment coins is defined as follows:

“[N]umismatic coins or other forms of money and legal tender manufactured of gold, silver, platinum, palladium, or other metal under the laws of the United States or any foreign nation with a fair market value greater than any statutory or nominal value of such coins.”

See also Senate Bill 172.

Exempting investment bullion and coins would make these items more appealing to investors. Under current Ohio sales tax law, silver or gold bullion investments are arguably less attractive than other types of investment, such as stock, which is not subject to sales and use tax (Columbus Dispatch).

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author 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.