NCBA has helped 36 states create exemptions from sales and use taxes on coins, currency, and precious-metals bullion, bringing the total to 41 states that exempt these products (five states have no sales tax at all). NCBA continues to work with dealers, collectors, and investors for more exemptions and keeping existing exemptions.
As part of this effort, NCBA is working to help defeat efforts to create a nation-wide “simplified” sales tax plan (SSTP), through which Congress would grant states the power to force out-of-state merchants to collect and remit sales taxes for each state. This is a significant issue with the potential to change the way US merchants have conducted business for more than 200 years. Preserving our existing sales-tax exemptions is critical.
NCBA has also supported the World Gold Council’s efforts toward federal legislation that would qualify gains from precious-metals investments for the lower capital gains tax rate. NCBA will continue to push for this and for legislation that would also qualify rare-coin investments for the capital gains rate.
The United States is the only major power that does not currently levy a value-added tax (VAT) or similar national tax (called the “goods and services tax” in Canada). NCBA is constantly on guard against efforts to impose this kind of tax in the United States, as it would be disastrous for the numismatic and precious-metals bullion communities.