Greysheet.com: "NJ Governor Enacts Tax Exemption For Investment Bullion And Coins"

Goldbully

This news should make a lot of folks happy.

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New Jersey Governor Enacts Tax Exemption For Investment Bullion And Coins
Investment coins with a fair market value of not less than $1,000 will be exempt from sales tax in New Jersey.

_by National Coin and Bullion Association | Published on September 13, 2024 _

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New Jersey governor Philip D. Murphy has signed into law a pivotal piece of legislation, S721, which exempts sales of investment metal bullion and certain investment coins from sales and use tax. This success marks the culmination of a dedicated campaign led by the National Coin & Bullion Association (NCBA) and its coalition partners.

Investment metal bullion refers to precious metals like refined gold, silver, platinum, and palladium, where their value is based solely on their metal content rather than their form. It excludes metals used in industrial, artistic, or other specific applications. Investment coin includes numismatic coins made from metals such as gold, silver, platinum, or even non-precious metals, with a market value of at least $1,000. It does not include jewelry, works of art, or commemorative medallions.

The new law, which goes into effect on January 1, 2025, includes a provision that exempts investment coins with a fair market value of not less than $1,000 from sales tax. This threshold was included to address concerns from the Assembly Appropriations Committee about the potential impact on sales-tax revenue after much negotiation and careful consideration.

David Crenshaw, executive director of NCBA, praised the legislation, saying, “The passage of S721 demonstrates the positive impact of sustained advocacy and collaboration. This law benefits both consumers and the industry by removing unnecessary financial barriers, while still addressing the state’s revenue concerns.”

The success of this legislative push is owed to the tireless efforts of several key figures, including NCBA industry issues advisor Patrick Heller, who played an instrumental role in addressing concerns from the state’s Office of Legislative Services, effectively refuting flawed fiscal assumptions and providing compelling testimony. Additionally, lobbyists Patrick Torpey and Dan Smith of 1868 Public Affairs in Trenton, New Jersey, were crucial in navigating the bill through the legislative process and securing vital meetings with key decision-makers, including the governor’s assistant counsel. The legislation’s smooth passage is the result of the strategic collaborative approach taken by the NCBA and its partners, which highlights the importance of proactive engagement with lawmakers and stakeholders.

With the governor’s signature, New Jersey now joins a growing list of states offering similar tax exemptions, fostering a more favorable environment for investment in precious metals.

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Greysheet.com link

jmlanzaf

I'm surprised no politician has made the argument that such thresholds are elitist. What about a stacker who never has $1000 in his pocket and just wants to occasionally add an ounce of silver?

JerseyB

It's about time. I live in NJ and I shop exclusively at my LCS, shows, and Great collections to avoid sales tax. This likely won't change but it will be nice to know I won't have to pay tax if I were to buy some gold or better coins online.

sellitstore

Good news. So many states have gone this route now. When will the rest get on board?

johnny9434

thats good to hear by all means. there killing us

breakdown

Welcome news. Now I just need gold to go down a little and I can get back in touch with bullion dealer.

DocBenjamin

2025 I will sell my coins for the cost of shipping and require a significant tip to get them to the post office.

CommemDude

As a NJ resident I always believed that I was more likely to be hit by a meteor than live to see taxes reduced

P0CKETCHANGE

@CommemDude said:
As a NJ resident I always believed that I was more likely to be hit by a meteor than live to see taxes reduced

Better wear a helmet for the next few days just in case

Jacques_Loungecoque

Wow, what a swell guy that Phil is.

golden

Good news for those in Jersey.

PeakRarities

I appreciate the work of thr NCBA in getting this through. These consumer friendly legislation changes can only help the hobby as whole. Does anyone know if sales tax is collected in Taxachusetts?

U1chicago

@jmlanzaf said:
I'm surprised no politician has made the argument that such thresholds are elitist. What about a stacker who never has $1000 in his pocket and just wants to occasionally add an ounce of silver?

I was wondering the same thing. California has a similar rule and the threshold went up (now 2k after being 1.5K for while).

PeakRarities

@U1chicago said:

@jmlanzaf said:
I'm surprised no politician has made the argument that such thresholds are elitist. What about a stacker who never has $1000 in his pocket and just wants to occasionally add an ounce of silver?

I was wondering the same thing. California has a similar rule and the threshold went up (now 2k after being 1.5K for while).

They raised it from $1,000 to $1,500 in 2009, when gold was about $1000/ounce. If they wanted the law to have the equivalent amount of coverage, they would need to to raise it to $3,500 or $4,000 now. It's comical how it can take a decade to make changes to one of these arbitrary limits, but in that time span the value of the dollar has decreased twice as much as the amount of the increase. It's like how the irs has a $600 threshold for 1099 reporting, or how some banks maintain a $500 limit for ATM withdrawals, as if its 1998. Eventually, the threshold for sales tax on coins/bullion will be $2500 but by that time gold will be $5000 😂.

TPring

"They raised it from $1,000 to $1,500 in 2009, when gold was about $1000/ounce. If they wanted the law to have the equivalent amount of coverage, they would need to to raise it to $3,500 or $4,000 now. It's comical how it can take a decade to make changes to one of these arbitrary limits, but in that time span the value of the dollar has decreased twice as much as the amount of the increase. It's like how the irs has a $600 threshold for 1099 reporting, or how some banks maintain a $500 limit for ATM withdrawals, as if its 1998. Eventually, the threshold for sales tax on coins/bullion will be $2500 but by that time gold will be $5000 😂."

LOL, that is government in action inaction.

PeakRarities

@TPring said:

LOL, that is government in action inaction.

😂 Ha! I see what you did there, and Im here for it. I think we can all agree about that.

PerryHall

So, some blue-collar worker has to pay sales tax when he buys a roll of ASE's while the owner of the corporation that he works for can buy a roll of AGE's and doesn't have to pay any sales tax whatsoever? Yea. Sounds real fair.

batumi

@PerryHall said:
So, some blue-collar worker has to pay sales tax when he buys a roll of ASE's while the owner of the corporation that he works for can buy a roll of AGE's and doesn't have to pay any sales tax whatsoever? Yea. Sounds real fair.

As the Queen of Mean so stated, "Only the little people pay taxes."

MetroD

@PeakRarities said:
I appreciate the work of thr NCBA in getting this through. These consumer friendly legislation changes can only help the hobby as whole. Does anyone know if sales tax is collected in Taxachusetts?

"Section 6. The following sales and the gross receipts therefrom shall be exempt from the tax imposed by this chapter:—"

Source: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter64h/Section6

The following BGASC 'reference/summary' was also helpful: https://www.bgasc.com/massachusetts-sales-tax-gold-silver-bullion-coins

BLUEJAYWAY

Less taxes for some purchases. Why the nerve.

PeakRarities

@MetroD said:

@PeakRarities said:
I appreciate the work of thr NCBA in getting this through. These consumer friendly legislation changes can only help the hobby as whole. Does anyone know if sales tax is collected in Taxachusetts?

"Section 6. The following sales and the gross receipts therefrom shall be exempt from the tax imposed by this chapter:—"

Source: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter64h/Section6

The following BGASC 'reference/summary' was also helpful: https://www.bgasc.com/massachusetts-sales-tax-gold-silver-bullion-coins

Thanks Metro, you should get an award for doing such an excellent job as the official forum fact checker! 😅

sellitstore

If you believe Google's AI summary Massachusetts has a similar $1000 limit on tax on coins. Larger purchases and bullion and legal tender purchases are exempt. Some items NOT exempt are platinum and paper money.

That's better than NY, which, I believe, still has no exemptions.

CRHer700

I wonder how long it will take eBay to recognize this.

logger7

Now the for their residents and other states like this the only worry on selling precious metals will be taxes, but the IRS doesn't seem to know at what level bullion should be taxed.

jmlanzaf

@sellitstore said:
If you believe Google's AI summary Massachusetts has a similar $1000 limit on tax on coins. Larger purchases and bullion and legal tender purchases are exempt. Some items NOT exempt are platinum and paper money.

That's better than NY, which, I believe, still has no exemptions.

NY has a bullion exception over $1000

Glen2022

Very rare to see state politicians reduce taxes on anything. Politicians love to spend money (other people's money, yours and mine), and generally raise taxes. Federal politicians usually just print more money to spend more. Occasionally, federals reduce taxes IF politically expedient.

MrEureka

Does anybody here know if the $1000 threshold in NJ is per item or per invoice?

MrEureka

@PerryHall said:
So, some blue-collar worker has to pay sales tax when he buys a roll of ASE's while the owner of the corporation that he works for can buy a roll of AGE's and doesn't have to pay any sales tax whatsoever? Yea. Sounds real fair.

It’s certainly not fair, but it is practical. For a purchase over $1000, it used to pay for a NJ resident to buy from out of state vendors, pay postage and avoid sales tax. For smaller purchases, it didn’t pay. And also as a practical matter, consider how often taxes are actually collected on in-state coin sales.

Goldbully

@MrEureka said:
Does anybody here know if the $1000 threshold in NJ is per item or per invoice?

Pretty sure it's per invoice.

I won a single $800 coin on Heritage and had to pay MD sales tax.

When the invoice is over $1,000 they don't take sales tax out.....and that could be three $400 coins.

sellitstore

@jmlanzaf said:

@sellitstore said:
If you believe Google's AI summary Massachusetts has a similar $1000 limit on tax on coins. Larger purchases and bullion and legal tender purchases are exempt. Some items NOT exempt are platinum and paper money.

That's better than NY, which, I believe, still has no exemptions.

NY has a bullion exception over $1000

I was not aware of this. Thanks for the correction.

Still nothing on coins in NY? Does anyone know if there is anything in the works or any NY efforts?

sellitstore

@Goldbully said:

@MrEureka said:
Does anybody here know if the $1000 threshold in NJ is per item or per invoice?

Pretty sure it's per invoice.

I won a single $800 coin on Heritage and had to pay MD sales tax.

When the invoice is over $1,000 they don't take sales tax out.....and that could be three $400 coins.

If, by spending another $200 the whole invoice would be tax free, buy something like $200 in bullion, sell it for $180. You will lose $20 on the bullion but save $60-$80 in sales tax. An incentive for buyers of less than $1000 to round up their purchases to save sales tax.

Could be some grey areas. I buy $800 worth of 90% and ask dealer what else he has that cost $200. He shows me a partial set of Franklin halves at a slightly higher rate than the other 90% I'm buying. Taxable? What if the other $200 is a BU 1963 roll or a group of 1955 Bug's Bunny variety halves? Taxable? How about XF-AU walkers? Where does one draw the indistinct line between bullion and better?

MrEureka

@Goldbully said:

@MrEureka said:
Does anybody here know if the $1000 threshold in NJ is per item or per invoice?

Pretty sure it's per invoice.

I won a single $800 coin on Heritage and had to pay MD sales tax.

When the invoice is over $1,000 they don't take sales tax out.....and that could be three $400 coins.

But that's Maryland's rule. I'm asking about NJ.

Goldbully

@MrEureka said:

@Goldbully said:

@MrEureka said:
Does anybody here know if the $1000 threshold in NJ is per item or per invoice?

Pretty sure it's per invoice.

I won a single $800 coin on Heritage and had to pay MD sales tax.

When the invoice is over $1,000 they don't take sales tax out.....and that could be three $400 coins.

But that's Maryland's rule. I'm asking about NJ.

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I couldn't find any info on an invoice over $1,000 for the new NJ law.

I would 'assume' it will be by invoice since that's what some of the other states do.

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FWIW here's a Link to Heritage Sales Tax Info by state.

MrEureka

@Goldbully said:

@MrEureka said:

@Goldbully said:

@MrEureka said:
Does anybody here know if the $1000 threshold in NJ is per item or per invoice?

Pretty sure it's per invoice.

I won a single $800 coin on Heritage and had to pay MD sales tax.

When the invoice is over $1,000 they don't take sales tax out.....and that could be three $400 coins.

But that's Maryland's rule. I'm asking about NJ.

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I couldn't find any info on an invoice over $1,000 for the new NJ law.

I would 'assume' it will be by invoice since that's what some of the other states do.

......

FWIW here's a Link to Heritage Sales Tax Info by state.

Odds are you're right, but I wouldn't want to go to court with an argument like that.

Glen2022

Rare to see politicians reduce taxes. Politicians love to spend money, usually other people's, yours and mine, and raise taxes.

batumi

@CommemDude said:
As a NJ resident I always believed that I was more likely to be hit by a meteor than live to see taxes reduced

Indeed- I believe Hell may have just frozen over!

blitzdude

No taxes on coins and bullion here in The Commonwealth. God bless The Commonwealth. RGDS!

breakdown

Is anyone aware of a updated listing of bullion sales tax/exemptions by state? Don't see one on the NCBA website.

Goldbully

@breakdown said:
Is anyone aware of a updated listing of bullion sales tax/exemptions by state? Don't see one on the NCBA website.

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Here is a link to Heritage's listings by state.