Indiana Exempts Gold Bullion
- Sales Tax News
- Apr 4, 2016 | Gail Cole
Towards the end of March, Governor Mike Pence of Indiana assigned his signature to House Bill 1046, thereby creating a sales and use tax exemption for certain paper money, rare coins, and precious-metals bullion. The exemption will take effect July 1, 2016.
HB 1046 creates a sales tax exemption for transactions involving the sale of coins and bullion “that are permitted investments by an individual retirement account under federal law,” or legal tender. In addition, it authorizes the secretary of state to “issue a temporary registration to a foreign entity that wishes to sell precious metals bullion or currency at trade or coin show in Indiana and is not otherwise lawfully authorized to conduct business in Indiana.”
According to the fiscal note, the Indiana Department of Revenue estimates that the 65 “entities” in the state that sell bullion or currency “paid about $3.0 million in sales tax annually since 2013. It predicts the measure “could reduce revenue by approximately $1.5 million annually, beginning in FY 2017.” However, the fiscal note acknowledges this could be an optimistic projection.
Dealers and collectors of rare coins and bullion lobbied for the measure. David Hendrickson, a dealer in Winchester, said he “could not be happier with the outcome” and thanked “everyone that helped make this exemption a reality.” He noted, “Indiana now joins the 32 other states with a sales tax exception.”
Brad Skiles of Hoosiers for Tax-Free Bullion said the exemption would create new jobs and bring new revenue to the state. He called the exemption “common sense” and noted that it would enable Indiana to compete with the more than 30 other states that already provide for this exemption (Coin World).
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