Alabama Tax Regulations For Precious Metals
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Alabama Sales Tax for Precious Metals

By Gainesville Coins
Published April 23, 2020

As defined in state code §810-6-2-27 and §40-23-4(a)(51), the following bullion and numismatic items are exempt from sales tax when shipped by Gainesville Coins to an Alabama address:

EXEMPT

  1. Gold, silver, platinum, or palladium bullion bars or ingots refined to a purity no less than .900 fine, sold according to its precious metal content and not form;
  2. Gold, silver, platinum, or palladium coins of .900 fine purity or greater, sold according to its precious metal content instead of numismatic value or form.

All other bullion or numismatic items sold by Gainesville Coins are subject to Alabama state sales tax.

Seller has collected the simplified seller use tax of taxable transactions delivered into Alabama and the tax will be remitted on the customer's behalf to the Alabama Department of Revenue.

Seller's program account number is SSU-R010358745. Effective 02/01/2019.

Alabama Tax Code - Sales Tax Exemptions For Precious Metals

§810-6-2-27. Gold, Coin, and Bullion.

(3) Beginning June 1, 2018 until May 31, 2023, sales of bullion (including coins), gold, silver, platinum, palladium,or a combination of each precious metal (not including jewelry or works of art) that has gone through a refining process and for which the item’s value depends on its mass and purity, and not its form, numismatic value, or other value are exempt from sales and use tax.(4) Sales to persons who use gold in the rendition of professional or commercial services such as dentists or dental laboratories continue to be taxable.

(§§40-2A-7(a)(5), 40-23-4(a)(51), 40-23-31, and 40-23-83 Code of Ala. 1975. Adopted July 2, 1975, readopted through APA effective October 1, 1982, amended January 1, 2019)

Note that paragraphs (1) and (2) were superseded by (3) and (4), above.

§40-23-4(a)(51)

(51) a. For the period commencing on June 1, 2018, and ending five years thereafter, unless extended by an act of the Legislature, the gross proceeds of sales of bullion or money, as defined in Section 40-1-1(7).

b. For purposes of this subdivision, the following words or terms shall be defined and interpreted as follows:

1. BULLION. Gold, silver, platinum, palladium, or a combination of each precious metal, that has gone through a refining process and for which the item's value depends on its mass and purity, and not on its form, numismatic value, or other value. The term includes bullion in the form of bars, ingots, or coins that meet the requirements set forth above. Qualifying bullion may contain other metals or substances, provided that the other substances are minimal in value compared with the value of the gold, silver, platinum, or palladium and the other substances do not add value to the item. For purposes of this subparagraph, "gold, silver, platinum, or palladium" does not include jewelry or works of art.

2. MASS PURITY. An item's mass is its weight in precious metal, and its purity is the amount of precious metal contained within the item.

3. NUMISMATIC VALUE. An external value above and beyond the base value of the underlying precious metal, due to the item's rarity, condition, age, or other external factor.

c. In order for bullion to qualify for the sales tax exemption, gold, silver, platinum, and palladium items must meet all of the following requirements:

1. Must be refined.

2. Must contain at least ninety percent gold, silver, platinum, or palladium or some combination of these metals.

3. The sales price of the item must fluctuate with and depend on the market price of the underlying precious metal, and not on the item's rarity, condition, age, or other external factor.

(Section 40-1-1(7) MONEY.  Coins and paper currency of the United States of America used as a circulating medium of exchange.)

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