Oklahoma Amends Sales-Tax Exemption Law
Thursday, June 5, 2014
Section: States

On June 4, 2014, Oklahoma Governor Mary Fallin signed SB 862 providing a sales-tax exemption for "sales of gold, silver, platinum, palladium or other bullion items such as coins and bars," and removing the qualification that these products must be stored within a recognized depository facility. The law will take effect November 1, 2014.

The bill was authored in the Senate by Senator Clark Jolley (R-Edmond) and Senator Nathan Dahm (R-Broken Arrow) and in the House of Representatives by Representative Gary Banz (R-Midwest City), Representative Lewis Moore (R-Arcadia), Representative Mike Ritze (R-Broken Arrow), Representative John Bennett (R-Sallisaw), and Representative Mike Christian (R-Oklahoma City).

The state's statute (68 O.S. Supp. 2013, Section 1357) will be amended to read as follows:

Sec. 1. (42) Sales of gold, silver, platinum, palladium or other bullion items such as coins and bars and legal tender of any nation, which legal tender is sold according to its value as precious metal or as an investment. As used in the paragraph, "bullion" means any precious metal, including, but not limited to, gold, silver, platinum and palladium, that is in such a state or condition that its value depends upon its precious metal content and not its form. The exemption authorized by this paragraph shall not apply to fabricated metals that have been processed or manufactured for artistic use or as jewelry.

ICTA members Pat Heller (Liberty Coin Service) and Deb Evans-Olson (Lincoln Coin & Bullion) shared their states sales-tax exemption success stories with Scott Thomas, president and founder of APMEX, and Michael Garofalo, president of Citadel Global Depository Services, a subsidiary of APMEX (both Oklahoma City companies). Thomas reached out to his elected officials, telling them how much this bill would help by leveling the playing field for Oklahoma investors and what it would mean to all precious-metals dealers and Oklahoma businesses in general to have it passed.

Thomas stated that now Oklahoma residents don't have to buy their precious-metal products from out-of-state dealers, nor are they subject to paying sales tax on any of their precious-metals investments.

"I want to thank my fellow ICTA State Affairs Committee members and the ICTA staff for all of their unselfish sharing of time and knowledge. This proves that working together we can accomplish great things," added Garofalo.

For more information on the Oklahoma sales-tax exemption, please call APMEX at (800) 375-9006.