Texas Tax Regulations for Precious Metals
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Texas Sales Tax for Precious Metals

By Gainesville Coins
Published April 23, 2020

As defined in 34 TAC §3.336, the following bullion and numismatic items are EXEMPT from sales tax when shipped by Gainesville Coins to a Texas address:

EXEMPT

  1. Refined gold, silver, or platinum bullion bars, ingots, or plate sold according to its precious metal content and not form;

  2. Gold or silver coins that are designated as legal tender in the U.S. or a foreign nation and used as a medium of exchange;

  3. Numismatic coins that are not used as a medium of exchange, and trade based on beauty, rarity, or condition, rather than precious metal content;

  4. Paper currency that is designated legal tender* in the U.S.or a foreign nation and used as a medium of exchange.

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

Our Taxpayer Number is 3-20732-9531-6. Texas Use Tax Permit effective 02/01/2020.

*The sale of paper money that is not currency is taxable as the sale of tangible personal property

Texas Tax Code - Sales Tax Exemptions For Precious Metals

TEXAS ADMINISTRATIVE CODE
TITLE 34 PART 1 CHAPTER 3 SUBCHAPTER 0
RULE §3.336
Currency, Certain Coins, and Gold, Silver, and Platinum Bullion

(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Bullion--Gold, silver, or platinum that is formed into uniform shapes and quantities such as ingots, bars, or plates, with uniform content and purity, as are suitable for or customarily used in the purchase, sale, storage, transfer, and delivery of bulk or wholesale transactions in gold, silver, or platinum.
(2) Currency--The coin and paper money of the United States or another country that is designated as legal tender and circulates and is customarily used and accepted as a medium of exchange in the country of issuance.
(3) Numismatic coin--A coin that is not used as a medium of exchange or whose price depends more on characteristics such as beauty, rarity, and condition than on its metal content or its face value.

(b) Taxability of sales of gold, silver, or numismatic coins, and gold, silver, or platinum bullion. Effective October 1, 2013, the sale of gold, silver, or numismatic coins or of gold, silver, or platinum bullion is exempted from Texas sales and use tax.

(1) This exemption does not include gold, silver, or numismatic coins, or gold, silver, or platinum bullion in the form of jewelry or other items of adornment.
(2) The purchase of a commodity contract for items exempt under this subsection is not a taxable transaction.

(c) Taxability of currency exchanges. The exchange of currency for another form of currency based on an exchange rate is not a taxable transaction if the invoice, receipt, billing, sales slip or ticket, or contract issued to the customer identifies the exchange rate.

(d) Taxability of the sale of certain paper money. The sale of paper money that is not currency is taxable as the sale of tangible personal property. Sales or use tax is due on the total sales price of the paper money.

(e) Use of gold, silver, or numismatic coins or gold, silver, or platinum bullion to acquire taxable items. Persons who use gold, silver, or numismatic coins or gold, silver, or platinum bullion to acquire taxable items owe tax on the transaction based on the sales price of the taxable item.

Source Note: The provisions of this §3.336 adopted to be effective January 1, 1976; amended to be effective August 27, 1984, 9 TexReg 4344; amended to be effective June 7, 1987, 12 TexReg 1663; amended to be effective November 24, 1987, 12 TexReg 4198; amended to be effective August 10, 1990, 15 TexReg 4318; amended to be effective September 5, 2006, 31 TexReg 7133; amended to be effective July 12, 2018, 43 TexReg 4558

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