Louisiana changes taxability of bullion … again
- Sales Tax News
- Oct 19, 2017 | Gail Cole
Gold, silver, and other precious metals are alluring, for obvious reasons. They’re pretty, and they tend to be highly valued. Perhaps that’s why they seem to be irresistibly attractive to Louisiana lawmakers, who can’t seem to keep their hands off their taxability.
In 2013, the Louisiana Legislature removed the dollar limit for the sales tax exemption on gold, silver, and numismatic coins, and on platinum, gold, and silver bullion. The exemption had been limited to sales of these items valued at $1,000 or more.
Due to a state fiscal crisis, the legislature decided in 2016 to temporarily tax all sales of gold, silver, or numismatic coins, and platinum, gold, or silver bullion. They were taxed at 5 percent from April 1, 2016, through June 30, 2016, and were set to be taxed at 3 percent from July 1, 2016, through June 30, 2018. The full exemption was not to be reinstated until July 1, 2018.
But that wasn’t soon enough, so the legislature was at it again earlier this year. Due to the enactment of HB 396, sales of the following are exempt as of Oct. 1, 2017:
- Platinum, gold, and silver bullion valued solely upon its precious metal content, whether in coin or ingot form
- Numismatic coins with a sales price of no more than $1,000
- Numismatic coins sold at a national, statewide, or multi-parish numismatic trade show
To be fair to the legislature, they were under pressure to quickly reinstate the exemption. The Louisiana Professional Coin Dealers Association and the Industry Council for Tangible Assets (ICTA) both lobbied hard for it. According to Representative Stephen Dwight, who introduced HB 396, “Convincing our colleagues in the House and Senate of the exemption’s importance was not an easy task.”
Learn more about taxable money here.