Trenton, N.J. – New Jersey is considering joining 44 other states, including neighboring states New York, Pennsylvania, and Delaware, in exempting gold and silver investments from state sales tax. Assemblyman Kevin J. Rooney recently sponsored a bill (A5294) that received unanimous approval from the Assembly.
Under the proposed legislation, gold, silver, platinum, and palladium coins and bullion valued over $1,000 would be exempt from the state’s 6.625% sales tax. However, the exemption would not apply to art, jewelry, and commemorative coins.
Assemblyman Rooney, representing Bergen County, emphasized that this bill aligns New Jersey with the majority of states, promoting competitiveness and supporting local businesses. Currently, New Jersey precious metals and coin dealers face challenges due to the attraction of lower prices and tax exemptions offered by other states. The significant increase in the value of gold and silver has led to increased interest from investors, particularly in silver coins and bars as a safe-haven investment during economic uncertainty.
Rooney highlighted that any potential loss of tax revenue from the sales tax exemption would be outweighed by the benefits of keeping businesses and buyers within the state. He argued that just like other investments, such as stocks and bonds, which are not subject to sales tax, metals and coins should also be exempt, as people are using them to secure their financial futures.
If the bill is enacted, the sales tax exemption would be retroactive to March 1, 2023, providing relief for investors and bolstering the precious metals market in New Jersey.