Tennessee Governor Bill Lee signed legislation that will repeal the tax on gold and silver sales in the state.
House Bill 1874, which was overwhelmingly passed by the state legislature during their session, will allow residents to purchase the metals without the added costs.
The effort to repeal the tax, which was introduced by Representative Bud Hulsey (R-Kingsport) and Senator Frank Niceley (R-Strawberry Plains), was backed by the Sound Money Defense League, Money Metals Exchange, and Campaign for Liberty.
Supporters detailed the importance of repealing the state tax, because there is no federal tax on the sale of the precious metals.
“I’ve been working to free gold and silver from sales taxes in Tennessee since my kids were in elementary school. The Sound Money Defense League, in-state dealers, and folks all across Tennessee made their voices heard and helped get this bill across the finish line,” said Rep. Hulsey,
According to the Sound Money Defense League, the repeal of the sales tax will benefit residents of the state in multiple ways:
- Taxing precious metals is unfair to certain savers and investors. Gold and silver are held as forms of savings and investment. States do not tax the purchase of stocks, bonds, ETFs, currencies, and other financial instruments, so it makes no sense to tax monetary metals.
- Levying sales taxes on precious metals is illogical because gold and silver are inherently held for resale. Sales taxes are typically levied on final consumer goods. Precious metals are inherently held for resale, not “consumption,” making the application of sales taxes on precious metals illogical and especially inappropriate.
- Taxing gold and silver harms in-state businesses. It’s a competitive marketplace, so buyers in states with precious-metals sales taxes often take their business to neighboring states that have eliminated or reduced sales tax on precious metals
In addition to Tennessee, 41 other states have opted to remove the added costs.
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Cooper Moran is a reporter for The Tennessee Star and The Star News Network. Email tips to [email protected].
Photo “Bill Lee” by Bill Lee. Background Photo “Silver and Gold” by kevinp133.
Does anyone know when HB1874 take effect? On what date will gold and silver no longer be subject to taxation? Also, does this apply to platinum, Palladium and Ruthenium?