Virginia bullion tax exemption takes effect July 1
Monday, June 29, 2015
Section: States

Legislation enacted during the 2015 Session of the Virginia General Assembly (House Bill 1648 and Senate Bill 1336) provides an exemption from the retail sales and use tax for gold, silver, or platinum bullion, provided the total sales price for each such transaction exceeds $1,000. The legislation will take effect on July 1, 2015.

The sales and use tax (either 5.3 percent or 6 percent) will not be applied to items which meet the following tests:
  • The item must be refined to a purity of at least 90 percent precious metal.
  • The item may be a bar or ingot, a round, or a coin, including coins originally minted as legal tender (old U.S. gold and silver coins contain 90 percent precious metal).
  • The sale price must depend on the metal value and be no more than 120 percent of the value of the precious metal content. For example if the item contains one ounce of gold and the daily price of gold is $1,200 per ounce, the item will not be tax-exempt if the price exceeds $1,440. If the item contains one ounce of silver and the spot price of silver is $16, the sale will be exempt as long as the price is at or below $19.20.
  • The total transaction, which can include more than one exempt item, must exceed $1,000. Even if the individual items meet those tests, they are still taxed unless the transaction adds up to $1,000 in cost. Non-exempt items cannot help reach that total.
  • The item may not be art or jewelry, and may not contain additional elements that add value.

Here is the official document: “Tax Bulletin 15-6: Important Information Regarding Gold, Silver and Platinum Bullion Sales.”

A huge THANK YOU to John Feigenbaum, Stephen Haner (lobbyist), and all the dealers whose support made this exemption a realization.