California Tax Regulations for Precious Metals
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California Sales Tax for Precious Metals

By Gainesville Coins
Published April 23, 2020

As defined in state code Regulation 1599 (a)(3), the following bullion and numismatic items are EXEMPT from sales tax when shipped by Gainesville Coins to a California address:

EXEMPT

  1. Gold or silver “nonmonetized bullion” refined to purity of no less than.900 fine are exempt in single transactions greater than $1,500;
  2. Gold or silver “monetized bullion”, including American Arts Gold Medallions are exempt in single transactions greater than $1,500;
  3. Numismatic coins are exempt in single transactions greater than $1,500.

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

Note that all three types can be included in the same transaction to reach the $1,500 threshold.

Our Sales & Use Tax Account Number is 234-032000. Certificate of Registration – Use Tax effective 10/21/2019.

California Tax Code - Sales Tax Exemptions For Precious Metals

REGULATION 1599 Coins and Bullion, (a)(3)
Neither the sales tax nor the use tax applies to sales of "monetized bullion," nonmonetized gold or silver bullion, and numismatic coins provided the following conditions are met:

(A) The sale is in bulk amount. For sales occurring on or before December 31, 2008, a sale in bulk occurs if the total market value of the monetized bullion, nonmonetized gold or silver bullion, and numismatic coins sold in a single transaction is $1,000 or more. For sales occurring on or after January 1, 2009, a sale in bulk occurs if the total market value of the monetized bullion, nonmonetized gold or silver bullion, and numismatic coins sold in a single transaction is $1,500 or more, or is equal to or exceeds the adjusted amount as computed by Revenue and Taxation Code Section 6355. For purposes of this regulation, market value means sales price as defined in Section 6011 of the Sales and Use Tax Law.

(B) The sale is by or through a person registered pursuant to the Commodity Exchange Act (7 U.S.C. Sec.1 et seq.) or not required to be registered under the Commodity Exchange Act.

168.0260 "Gold Bullion" Defined. The Treasury Department's definition of "gold bullion" is used for the purpose of section 6355. (.900 fine or better)

168.0283 Natural Gold Nuggets. Natural gold nuggets do not meet the requirements of the exemption contained in Regulation 1599 because nonmonetized bullion, to which the exemption is limited, is silver or gold which has been smelted or refined. Since natural nuggets have not been smelted or refined, they are excluded from the exemption. 6/26/86.

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