NEW JERSEY – New Jersey may soon join 44 other states–including New York, Pennsylvania and Delaware–that do not tax gold and silver investments.
Metal bullion and coins would be exempt from state sales tax under a bill, sponsored by Assemblyman Kevin J. Rooney, that received a unanimous Assembly vote recently.
The bill (A5294) would exempt gold, silver, platinum and palladium coins and bullion valued at more than $1,000 from the state’s 6.625% sales tax. The legislation excludes art, jewelry and commemorative coins.
“This bill aligns New Jersey with what is happening in most other states, keeping us competitive,” Rooney (R-Bergen) said. “Our residents won’t have to go out of state to make these purchases, which is a boon for our businesses and the residents themselves.”
Garden State dealers in precious metals and coins have struggled for years against the lure of cheaper prices and tax exemptions offered in other states. With the dramatic increase in value in gold and silver, investors have flocked to purchase these items, especially silver coins and bars, which have weathered these turbulent economic times.
Rooney pointed out that any potential tax revenue lost from this sales tax exemption would more than be made up with keeping businesses and buyers in state.
“We don’t tax other investments that people make to build their nest eggs. Knowing that people are investing in metals and coins to secure their financial futures, we should follow suit and exempt those as well. It’s time to change these tax rules,” Rooney said.
If enacted, the exemption would be retroactive to March 1, 2023.