Only four states remain without a sales-tax exemption for coins, paper money, and precious-metals bullion. We urgently need members willing to spearhead state-level campaigns in Hawaii, Maine, and Vermont. If we hope to launch campaigns in these states before each legislature convenes for the 2025 session, we need committed local leaders on the ground.
 

Our past efforts to secure leaders for these initiatives have fallen short, and now we’re up against the clock. That’s why we’re reaching out to all of you. We believe the right leadership within each state, supported by our resources, can bring success to this critical effort.
 

NCBA is here to support you through every phase of the campaign:

We also recommend forming a coalition of dealers and engaging with each state’s numismatic organizations to strengthen these efforts. Financial support from the coalition will be needed to cover costs for a lobbyist (if retained) and any expenses related to NCBA’s involvement in these campaigns.
 

Your leadership can have a lasting impact on the numismatic community in Hawaii, Maine, or Vermont. If you’re interested in leading this effort—or know someone who might be—please reach out to us. Together, we can make these campaigns a success.
 

We look forward to hearing from you!

Exciting New Benefit for NCBA Dealer-Members

NCBA is pleased to announce a new exclusive benefit for dealer-members, designed to support businesses in complying with the latest Anti-Money Laundering (AML) and Countering Financial Terrorism (CFT) requirements. 

Trusted compliance partner Knaus & Associates, Inc., is offering a special 15% discount on all services for NCBA members. Their AML/CFT programs align with updated regulatory standards proposed by FinCEN and will ensure compliance with the evolving requirements under the AML Act of 2020. 

For complete details on how your business can benefit from this opportunity, please contact NCBA AML advisor Gary Knaus directly at 630-963-6350 or gknaus@aml4u.com.

CLICK HERE for the “Discounted AML/CFT Compliance Programs” information sheet.

Stay ahead of compliance requirements with this valuable NCBA member resource! 

NCBA Introduces DiscoverNCBA Promotion: Empowering Young Coin Dealers

• Connect with Industry Professionals: Network and engage with seasoned professionals in the field to gain valuable insights and build mentor relationships.
• Access Educational Resources: Equip yourself with the knowledge necessary to navigate regulatory frameworks and market trends effectively.
• Enhance Business Visibility and Credibility: Leverage NCBA’s platform to amplify your dealership’s presence and establish credibility within the industry.

Young Numismatists: Scholarship Opportunity!

Stay ahead of the curve with cutting-edge insights into the evolving landscape of anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations. Attend our seminar, “Navigating New AML Rules and AI Impacts on Business,” at the FUN Convention in Orlando, where NCBA AML advisor Gary Knaus will unpack critical updates and emerging trends affecting your business.
 

On July 3, 2024, the Financial Crimes Enforcement Network (FinCEN) introduced proposed updates to AML/CFT rules, including specific requirements for dealers in precious metals, stones, and jewels. Learn how these rules will impact your operations in  

These updates could mean new offshore transaction requirements, though the $10,000+ cash transaction reporting threshold remains unchanged.  
 

Financial crime costs are skyrocketing, with U.S. losses from money laundering and fraud estimated at over $845 billion in 2023. To combat these challenges, 70% of U.S. banks are turning to AI-powered solutions, which are revolutionizing how fraud and anomalies are detected. Our seminar will cover 

This seminar clarifies the proposed AML/CFT rule changes and how AI advancements in the banking sector could affect your compliance obligations and risk-management strategies.  

Be prepared for an engaging and informative session, offering actionable insights to ensure your business is positioned for success in a complex regulatory environment.  

Don’t miss out on this essential update! Register today and equip yourself with the knowledge to navigate the challenges and opportunities ahead.

Event Details:  

When: January 8, 2025, 10:00 a.m.

Where: FUN Convention, Orange County Convention Center, Orlando, FL, Room N320E
 

• Membership Status: Please ensure your membership is current and dues are up to date to attend.
• RSVP: Kindly confirm your attendance by July 31 for logistical purposes.
• Participation: Opportunities for member input will be provided during designated segments of the meeting.
• Meeting Conduct: Respectful adherence to meeting protocols is appreciated.

Membership Dinner and Update
Get ready for a fantastic evening! We are thrilled to invite you to our annual Membership Dinner and Update.

Join us for a wonderful opportunity to mingle with fellow members and guests, enjoy a delicious meal, celebrate award presentations, and get the latest updates on NCBA’s activities.

Date: Wednesday, August 20, 2025 

Time: Hors d’oeuvres and cocktails at 6:30 p.m.; dinner at 7:00 p.m. 

Location: Mickey Mantle’s Steakhouse, 7 South Mickey Mantle Dr., Oklahoma City, OK

Early Bird Special: Register by July 20, 2025, and save $25 per dinner ($100 now; $125 after July 20). 

Complimentary admission is included for Gold and Platinum members and one guest. Please RSVP. 

Sponsorship Opportunities: Consider becoming an event sponsor with a donation of any amount. Your support makes a significant difference!

Seating is limited, so be sure to register now and secure your spot! Click the button below to sign in and register. You’ll need your membership credentials—if you’ve forgotten them, there’s a link on the sign-in page to help you retrieve them.

CLICK HERE TO REGISTER NOW

We can’t wait to see you there!
 

Update Your Member Profile

• Member-only resources specifically for dealers, available online at ncbassoc.org
• Federal and state legislative alerts and other important communications
• Discounts on valuable cash- and broker-reporting information kits
• Professional development educational seminars
• Access to the online Member News quarterly newsletters

Information Kits and White Papers: Essential Resources for Your Business

NCBA provides essential information to help you with cash and broker reporting. Copper and above members get a 50% discount off the listed price.

Cash-Reporting Kit ($200): The information provided by NCBA is intended to assist dealers in understanding the regulations on cash reporting and money laundering. This information is designed to be used in conjunction with the advice of your professional tax advisor.

Consumer Information Kit ($50): This information has been produced in response to many questions from consumers regarding what products and circumstances require transactions be reported to the U.S. Department of the Treasury / Internal Revenue Service.

CLICK HERE to order information kits.

Broker Reporting (Form 1099-B): In response to the IRS clarification regarding reporting obligations for precious-metals dealers, NCBA has released two new white papers. The first, “Understanding Reportable Items and Approved Brands for Precious Metals Contracts,” delves into the implications of the IRS clarification on reporting precious-metals sales. It offers insights into how specific items correlate with CFTC-approved contracts and provides information on approved brands that are acceptable for fulfilling precious-metals contracts.

The second white paper, “Navigating IRS Form 1099-B Reporting: Guidelines for Precious Metal Dealers,” is a comprehensive guide designed to show dealer-members how to navigate the reporting requirements outlined in IRS Form 1099-B. This document offers clear instructions on how to determine when reporting is necessary, particularly in light of potential regulatory changes. While these guidelines may stand alone, they are intended to complement the information provided in the “Understanding Reportable Items and Approved Brands for Precious Metals Contracts” white paper. 

Dealer-members may download these white papers from our website, ncbassoc.org, after signing in via the main menu: Resources > Knowledgebase > Anti-Money Laundering > Files. 

Sales-Tax Status & Economic Nexus Requirements by State
This quick-reference guide, for dealer-members only, shows the sales-tax exemption status (complete, partial, or nonexistent exemption) of each state on in-state retail sales of coins, currency, and precious-metals bullion. This guide also shows each state’s post-Wayfair economic nexus requirements.

Dealer-members may download this resource from our website, ncbassoc.org, via the main menu (sign-in required): Resources > Knowledgebase > Sales and Use Taxes > Files. 

Draw More Exposure for Your Company

Would you like members and visitors to our website to see your company’s message? Would you like to capture the attention of NCBA members in our newsletter, Member News?

Help your company stand out with an advertisement in the advertising carousel and/or Member News. The “Our Sponsors” carousel on our website displays each ad in rotation for approximately five seconds. A carousel advertisement is a free benefit for Bronze-level members and above. Advertising in
Member News, which is sent to all NCBA members every quarter, is also a great way to get your message out.

CLICK HERE for more information.

States’ News

Presently, 46 states have complete or partial sales-tax exemptions on in-state retail sales of collector coins and precious-metals coins and bullion. Of those states, five (Alaska, Delaware, Montana, New Hampshire, and Oregon) have no state sales tax at all, while the other 41 have enacted legislation and adopted regulations to exempt such purchases. That leaves four states (Hawaii, Maine, New Mexico, and Vermont) and the District of Columbia who do not exempt retail sales of coins, currency, and precious-metals bullion from sales tax. Any member who would like to start a sales-tax exemption initiative in one of these remaining states or the District of Columbia should email ncba@ncbassoc.org.

Hawaii

Hawaii remains one of the last four states without a sales-tax exemption on coins, paper money, and precious-metals bullion. Since October, we have been searching for a leader within our Hawaii dealer community to help direct a campaign toward achieving this exemption. The involvement of local members is crucial for the success of this effort.

In 2021, action on a state bullion sales-tax exemption bill, HB 1184 HD1, was paused due to provisions in the national American Rescue Plan Act. In 2022, Representatives Val Okimoto and Dale Kobayashi sponsored the bill again, successfully advancing it through the House Finance Committee, where it was recommended for passage. The House approved the bill on March 4, 2022, and sent it to the Senate. However, despite being referred to the Ways and Means Committee, the bill stalled and ultimately expired in committee after the legislative session ended on April 5, 2022.

With strong local leadership, we believe renewed efforts to pass an exemption can be successful. If you’re interested in leading this campaign—or know someone who might be—please reach out. We’re eager to discuss how we can collaborate to secure this important exemption for Hawaii.

Kentucky

1. Collecting Sales Tax: This could shield against penalties from the Department of Revenue but risks alienating customers and possible legal action from consumers for overcharging.
2. Not Collecting Sales Tax: This may please customers but could lead to penalties or interest if the law eventually requires the tax.

Maine

Maine remains one of only four states without a sales-tax exemption on coins, paper money, and precious-metals bullion. Since October, we’ve actively been seeking a leader within our Maine dealer community to spearhead a campaign aimed at establishing this important exemption. Local involvement is essential for the success of this initiative.

In 2023, the most recent effort to gain a sales- and use-tax exemption culminated in Legislative Document 1051: An Act to Protect Maine People from Inflation by Exempting Gold and Silver Coins and Bullion from the State Sales and Use Tax. The bill progressed to the Senate Committee on Taxation on
March 7, 2023, and a public hearing followed on March 28. Despite support, the House and Senate ultimately failed to reach an agreement on the bill’s language, and it was tabled on May 25, 2023.

With strong local leadership, we are optimistic that a renewed effort to pass an exemption will succeed. If you’re interested in leading this campaign—or know someone who might be—please reach out to discuss ways we can work together to bring this exemption to Maine.

Nevada

In 2022, NCBA member Scott Schwartz of Fidelitrade, Delaware Depository in Boulder City, played a crucial role in securing financial support for our lobbying efforts. This led to collaboration with Allen Rowe of Northern Nevada Coin in Carson City, who is spearheading our campaign for a currency and bullion sales- and use-tax exemption in Nevada.

Our objective is to replace the Nevada Administrative Code §372.170, which currently provides a limited sales- and use-tax exemption for bullion coins sold at less than 150% of face value. Introducing legislation, we aim to replace this regulation to include a full exemption of currency and precious-metals bullion.

To advance this initiative, we have hired a lobbyist and are now focused on securing a bill sponsor from either the Senate or Assembly. Once a sponsor is identified, we will collaborate with them and a legislative staff attorney to draft the bill’s language.

Following these steps, we will engage with the state’s fiscal agency to discuss the bill’s fiscal impact. The Nevada State Assembly session begins on February 3, 2025, which will mark the official start of our campaign.

We believe this exemption will foster job creation, stimulate economic development, and promote tax fairness. We encourage all members to support this important initiative and stay informed about our progress. For more details or to get involved, please contact Allen Rowe at (775) 884-1660 or email info@brokencc.com.

New Jersey

New Jersey’s sales-tax exemption for investment-metal bullion and certain investment coins will take effect on January 1, 2025, following the passage of Senate Bill S721, signed into law by Governor Philip D. Murphy on September 12, 2024. 

Investment-metal bullion refers to precious metals like refined gold, silver, platinum, and palladium, where their value is based solely on their metal content rather than their form. It excludes metals used in industrial, artistic, or other specific applications. Investment coin includes numismatic coins made from metals such as gold, silver, platinum, or even non-precious metals, with a market value of at least $1,000. It does not include jewelry, works of art, or commemorative medallions.

With this law, New Jersey becomes the 46th state to offer such exemptions, creating a more favorable environment for coin and precious metal investment.

New Mexico

NCBA members Andrew and Shane Hoffman of Santa Fe Coins & Jewelry are leading the push for a currency and bullion sales- and use-tax exemption in New Mexico. 

The coalition is currently deliberating whether to move forward with the campaign during the 2025 legislative session or to focus on building a stronger foundation for 2026. Once a decision has been made to proceed, we will begin the work of hiring a lobbyist, securing a bill sponsor, drafting bill language with a legislative staff attorney, and engage with the state’s fiscal agency to assess the bill’s fiscal impact. 

Assuming the coalition moves forward this year, the New Mexico legislative session beginning January 21, 2025, will mark the official start of the campaign. 

We believe this exemption will foster job creation, stimulate economic development, and promote tax fairness. We encourage all members to stay informed and support this important initiative. For more details or to get involved, please contact Andrew and Shane Hoffman at (505) 989-7680 or email ppmcoins@gmail.com.

Vermont

Vermont remains one of only four states that has not enacted a sales-tax exemption on coins, paper money, and precious-metals bullion. In 2024, we hoped to advance House Bill 295, which would bring Vermont in line with the 46 other states that provide this exemption. Unfortunately, the bill faced a significant roadblock and did not make it out of the House Ways and Means Committee.

Despite NCBA’s repeated attempts to reach out to the bill’s sponsor, Representative Arthur Peterson, we were unable to establish communication to offer support and suggestions. This lack of response made progress challenging, highlighting the need for strong local advocacy and leadership.

We are committed to supporting this effort every step of the way. If you or someone you know is interested in leading this campaign, please reach out. Together with determined local leadership, we can work to secure this much-needed tax exemption for Vermont’s dealers and collectors.

Washington

The Joint Legislative Audit & Review Committee (JLARC) of Washington State is currently undertaking a thorough review of state tax preferences, including those related to precious metals and monetized bullion. This review is part of JLARC’s mandate to reassess state tax preferences every ten years, evaluating their impact, effectiveness, and overall relevance to current policy and economic conditions.

In December 2023, JLARC reached out to industry experts, including the National Coin & Bullion Association (NCBA), requesting input on the current sales-tax exemption for precious metals and bullion. JLARC staff sought to understand how these tax preferences affect businesses and consumers, as well as whether any states have repealed and subsequently re-enacted similar exemptions. 

They emphasized the need to gather insights from industry stakeholders, and NCBA quickly responded, providing detailed input on the benefits of exempting precious metals and bullion from sales and use taxes, and a pivotal discussion took place in January 2024 between JLARC and NCBA representatives, including Pat Heller, NCBA’s industry issues advisor. We highlighted key advantages, such as supporting local businesses, preventing cross-border shopping due to neighboring states’ tax exemptions, and reducing tax burdens on smaller investors. NCBA’s feedback also underscored the broader economic benefits, including increased business activity and the growth of the precious metals sector, as evidenced by successful exemptions in states like Tennessee. 

The JLARC released its initial 2024 Tax Preference Reviews in July, where they estimated that Washington’s exemption on precious metals resulted in an annual loss of $28 million in sales taxes. This estimate was based on confidential taxpayer data, which raised questions from NCBA regarding its accuracy. NCBA expressed concerns that the actual sales figures might be significantly lower than projected, suggesting the estimate might be overstated by as much as 5–8 times the actual amounts.

In written follow-up testimony submitted in September 2024, NCBA emphasized several key points to defend the existing exemptions. We questioned the accuracy of the sales data used to estimate potential tax revenue losses and cited examples from other states where tax exemptions had been revoked, resulting in significant harm to local businesses. We pointed out that Washington residents would likely seek alternatives to avoid sales tax, such as purchasing from out-of-state vendors or using tax-exempt investment options like ETFs and vault storage. Furthermore, NCBA highlighted interstate competition, noting that nearly all other states provide similar exemptions, thus placing Washington businesses at a disadvantage if the exemption were revoked.

JLARC presented its final report on December 4, 2024, with the Citizen Commission recommending the continuation and clarification of these tax preferences for precious metals and monetized bullion. Public testimony, including NCBA’s contributions, played a crucial role in shaping the final recommendations regarding these preferences in Washington State. Attention now turns to the state legislature’s evaluation of the preferences’ alignment with public policy objectives and their significance to the state’s tax structure. For the complete report, click here.

National News

Fifth Circuit Reinstates Nationwide Injunction on Corporate Transparency Act

Proposed New AML Rules and The Impact of AI on Dealers

• “Establish a risk assessment process that serves as the basis for the dealer’s AML/CFT program”
• “Identify, evaluate, and document the dealer’s money laundering, terrorist financing, and other illicit financial risk activities”
• “Financial risks of the dealer based on its business activities,” which may include 
  • Products
  • Services
  • Distribution channels
  • Customers
  • Intermediaries
  • Geographic locations
  • The process of updating the AML/CFT program when the Treasury Department establishes new priorities (such as during an administration change) 
• Additional offshore transaction requirements
• Documentation and approval by the dealer’s board of directors (or, if no board, by an equivalent governing body) of company AML/CFT program components.

Recent Commodity Futures Trading Commission Judgment: When Bad Facts Make Bad Law

Throughout the legal community, a phrase oft repeated in every law school is the instructive admonition, “Bad facts make bad law.” For those in the business of numismatic and/or bullion sales, an example can be seen from Minnesota in 2014, when a lawmaker responded to the harm done to a constituent cheated in a coin sale. A single bad actor became the source of Minnesota’s outrageous registration laws, so complex and onerous that legitimate dealers and respected auction houses terminated sales to Minnesota residents.

Legal Actions Alleging Fraud Previously Brought by State Regulators
In New York, the case against Lear Capital, Inc., not only alleged fraud but also alleged that Lear was an unregistered commodity broker-dealer under New York law. The attorney general took the position that coins were included in the New York business law definition of a “commodity,” and in New York an interpretation made by the attorney general is effectively law. The final settlement required that Lear employees conducting business with New York customers must register and maintain registration with the New York attorney general as commodity broker-dealers or commodity salespersons. 

In California, the Commodity Futures Trading Commission (CFTC) and 27 state securities agencies filed a joint enforcement action in U.S. District Court against precious-metals dealer Safeguard Metals LLC and its principal, Jeffrey Santulan, charging the defendants with nationwide fraud for soliciting and receiving $68 million in investor funds to purchase precious metals “and overpriced silver coins.” The allegations included fraudulent solicitations intended to deceive customers into purchasing precious-metal gold and silver coins, most often transferred from retirement savings accounts. The Securities and Exchange Commission (SEC) simultaneously filed against Safeguard Metals and Santulan for violations including rendering unlawful investment advice.

Bad Laws Can Also Result in Bad Over-Regulation
On October 25, 2024, the CFTC announced that a federal court in California issued a default judgement against Regal Assets LLC and its owner and president to the amount of $49 million as a result of a 2023 complaint filed by the CFTC and the California Department of Financial Protection and Innovation. The federal and state regulators charged the defendants with misappropriating customer funds given to defendants for the purpose of purchasing precious metals from Regal Assets. The complaint charged that Regal Assets solicited customers to transfer funds, often from their tax-deferred retirement accounts, to purchase gold and silver from Regal Assets through self-directed IRA accounts. Instead, without the customers’ knowledge, Regal misappropriated over $21 million of that money, providing forged documents to conceal the misappropriations and continue the fraudulent scheme.

In addition to $21.9 million in restitution to defrauded customers, the court ordered payment of an additional $27.3 million in civil monetary penalties. The court permanently enjoined the defendants from engaging in conduct violating California law and permanently banned them from registering with the CFTC and from trading in any CFTC-regulated markets. 

Out of the blue, the court appointed the National Futures Association (NFA) as a monitor to receive restitution payments from Regal Assets and make distribution to defrauded customers and penalties. The NFA is an independent self-regulatory organization for the U.S. futures and derivatives markets, designated by the CFTC as a registered futures association. The NFA’s mandate is to safeguard the integrity of the derivatives markets, protect investors, and ensure that members fulfill their regulatory obligations.

Potential Over-Regulation
Perhaps a greater purpose may be planned in making NFA the monitor of these payments. The CFTC’s website seems to indicate a planned effort to reconstruct the precious-metals industry—“The CTFC Precious Medals Advisory provides information about fraud involving trading of precious metals—such as gold, silver, palladium and platinum—and how customers can detect, avoid and report these scams.”

Titles of recent articles offered by the advisory include “Gold is No Safe Investment”; “Fraud Advisory: Precious Metals Fraud”; “Beware of Gold and Silver Schemes Designed to Drain Your Retirement Savings.” All of these warnings contain little more than bad facts and the activity of bad actors. 

The CFTC site also “strongly urges the public to verify a company’s registration with the CFTC and NFA BASIC before committing funds. A customer should be aware of providing funds to any unregistered company.”

Bad Facts Could Lead to Mandatory Bad Regulations

The CFTC website also provides a toll-free hotline for reports of possible violations of commodity trading laws. Whistleblowers may be eligible to receive between 10 and 30 percent of the collected monetary sanctions from the CFTC Customer Protection Fund, which is financed through the sanctions paid by Commodity Exchange Act violators.

One could wonder if legitimate actions against actual bad actors are only providing a pathway for regulatory control of every form of precious-metals sales. Good actors would then become burdened with excessive regulatory compliance costs and ultimately may be forced to disappear from the business altogether.

Jimmy Hayes is NCBA’s general counsel, a numismatist and former member of Congress. He has also served as Commissioner of Financial Institutions and Commissioner of Securities in Louisiana. Jimmy Hayes and Anthony J. Correro (Securities professor at LSU Law School) wrote the current Louisiana Securities Code.