The only states that are still alive pay taxes on the sale of precious metals. To date, 41 states have eliminated sales taxes on gold and silver bullion. The only states that continue to levy 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.
In the state of Texas, sales of gold and silver are not subject to sales tax. If shipping an order to your state involves paying sales tax on silver and gold bars, coins or rare coins, you can avoid being charged sales taxes for your order by storing your items at the Texas Bullion Depositary. Since the order will not have a shipping address in your state, no state sales taxes will be required. This represents a small step toward reinstating gold and silver as legal tender and ending the Federal Reserve's monopoly on money.
Investors, savers and small businesses in Tennessee can now purchase gold, silver, platinum and palladium bars and coins without taxes of up to 10%, depending on the buyer's specific location. The Sound Money Defense League, a national organization dedicated to making precious metals recognized in the United States, breaks down one of the fiscal barriers that hinder the use of gold and silver as money, and could also begin the process of abolishing the Federal Reserve's fiat monetary system by attacking it from the bottom up: taking the rug out of it by working to make its functions irrelevant at the state and local levels, and by sitting the basis for undermining the Federal Reserve's monopoly through introduction of competition into the monetary system. To clear up the confusion, we've created an interactive directory that allows you to research your state's sales tax rules and regulations so you know in advance what to expect. In an article presented at the Mises Institute, Professor William Greene, an expert in constitutional bidding, said that when people in several states start using gold and silver instead of Federal Reserve notes, it would effectively override the Federal Reserve and end the federal government's monopoly on money.
If you store your gold and silver bars somewhere other than your home state, be sure to check that location's sales tax rates. Cortez added that rising inflationary pressures make gold and silver more attractive to consumers seeking to preserve their wealth. The exchange of currency for another form of currency based on an exchange rate is not a taxable transaction if the invoice, receipt, billing, proof of sale, or ticket or contract issued to the customer identify the exchange rate. The legislation would exempt certain investment metal ingots and coins from the sale and use of certain ingots and coins.
In short, South Dakota claimed that it was losing local sales taxes, as consumers spent more money shopping online than in physical stores. Ron Paul testified during his testimony in support of an Arizona bill that repealed capital gains taxes on gold and silver in that state. The website will automatically calculate the sales tax due, based on the exact items in your cart and your shipping address.