TRENTON, NJ – A the economy continues to suffer and inflation continues to rise under the Presidency of Joe Biden, many are turning to investments in precious medals to protect their assets.
Under existing New Jersey law, those investments, unlike other credible financial investments are subject to state sales and use tax.
The bill, A5294, would exempt legitimate gold, silver and other precious metal ‘bullion’ from state sales tax. It would also cover the sale of gold coins purchased for investment purchases.
As defined in the bill, “investment metal bullion” means any elementary precious metal that has been put through a process of smelting or refining, including, but not limited to, gold, silver, platinum, and palladium, and that is in such state or condition that its value depends upon its contents and not its form.
The bill will not cover items made of precious metals such jewelry, silverware, or arts and crafts that have been assembled, fabricated, manufactured, or processed in one or more specific and customary industrial, professional, aesthetic, or artistic uses.
The bill also defines “investment coin” as any numismatic coin manufactured of gold, silver, platinum, palladium, or any other metal, including non-precious metals, and having a fair market value of not less than $1,000.
Commemorative coins and medallions would not be exempt.
“The bill is also intended to treat investment metal bullion and investment coins similar to other investment instruments, such as stocks, which are not subject to sales tax,” Assemblyman Louis D. Greenwald, the sponsor said.