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Bill would exempt precious metals from sales tax
By Marc Kovac
COLUMBUS
The Ohio House moved legislation to exempt certain gold and precious metal purchases from sales taxes.
HB 26 passed on a vote of 81-11 Wednesday and heads to the Ohio Senate for further consideration.
The bill focuses on investment metal bullion, defined in the legislation as “any elementary precious metal that has been put through a process of smelting or refining and which is in such a state or condition that its value depends upon its contents and not upon its form.”
The tax break also would cover investment coins, “money and legal tender manufactured under the laws of the United States or any foreign nation with a fair market value greater than any statutory or nominal value.”
Examples include gold, silver, platinum and palladium, according to an analysis by the state’s Legislative Service Commission.
Rep. Ron Maag of Lebanon, R-62nd, a primary co-sponsor of the bill, said 32 other states don’t collect sales taxes on such purchases, including Pennsylvania and Michigan.
“Ohio’s coin and precious-metal dealers are losing a considerable amount of business,” he said. “The tax is a detriment to coin sales and does more harm to this state than good. It should be removed in order to foster coin and bullion sales in the state.”
Rep. Christina Hagan of Alliance, R-50th, the other primary co-sponsor, added, “One of the most-rewarding things that we can do is restore economic opportunity where we have taken it away, and that is exactly what this legislation does for the state of Ohio. It gives our small businesses that deal in this arena an opportunity once again to compete with the majority of states who have this [sales-tax exemption].”