Precious metals such as gold, silver, platinum and palladium are exempt from sales tax in many states. However, each state has its own rules and regulations when it comes to collecting sales tax on these metals. Currently, 41 states have eliminated sales taxes on gold and silver bullion. The only states that still impose taxes on the sale of precious metal ingots are Vermont, New Jersey, Maine, Tennessee, Kentucky, Wisconsin, New Mexico, Mississippi and Hawaii.
The District of Columbia also taxes physical purchases of gold and silver. The United States does not have a single all-encompassing sales tax. Each of the 50 individual states has its own tax laws and sales tax rates. These can vary greatly from state to state.
In some states there is no sales tax on precious metals, while in others you may be charged up to 10% for every purchase you make. At present, 42 states have eliminated some or all of the taxes on the purchase of gold and silver. There are also new bills pending in five of the remaining eight states: Tennessee, Mississippi, Kentucky, Hawaii and New Jersey. These taxes must be levied on any currency that contains gold or silver but is not recognized as a medium of exchange for the payment of debts and taxes; any coin or bar made of platinum, palladium or copper; any ingot product made of gold or silver if such bars are not stamped or printed with their weight and purity; accessories; and processed items.
The nine states that continue to tax gold and silver purchases include Vermont, New Jersey, Maine, Tennessee, Kentucky, Wisconsin, New Mexico, Mississippi and Hawaii; the District of Columbia also taxes physical purchases of gold and silver.
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