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Bullion now exempt in Minnesota

  • Oct 23, 2017 | Gail Cole

 Gold bullion is now exempt from Minnesota sales tax.

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.

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.