Bullion now exempt in Minnesota
- Sales Tax News
- Oct 23, 2017 | Gail Cole
Sales of precious metal bullion are exempt in Minnesota as of July 1, 2017, but coins remain taxable.
The Minnesota Department of Revenue defines precious metal bullion as “bars or rounds that consist of at least 99.9% by weight of either gold, silver, platinum, or palladium, and are marked with weight, purity, and content.” While coins tend to be round, they’re distinctly different. Coins are legal tender minted by sovereign governments and have a minimum face value.
In addition to coins, works of art, jewelry, and scrap metal comprised of precious metal remain taxable.
The change in taxability derives from the enactment of HF1, an omnibus bill. According to the measure, it eliminates “the difference in tax treatment between the sale of precious metal bullion and the sale of stock, bullion ETFs, bonds, and other investment instruments.”
The Industry Council for Tangible Assets (ICTA) has long been pushing for this exemption. It would prefer to see it extended to all precious metals, including coins. However, as the late Diane Piret, former ICTA Director of Legislative Affairs, used to say, “It’s better to get a partial loaf than none. We can always come back for more.”
Learn about the taxability of precious metals in other states in Taxable Money.