Column: U.S. States Weigh Coin and Bullion Sales Tax Exemptions as Maryland and Washington Bills Seek Reinstatement

This article is based on a column published by Numismatic News on February 12, 2026. The author, Patrick A. Heller, serves as the unpaid volunteer Industry Issues Advisor of the National Coin & Bullion Association (NCBA). Many of the views and figures below are the author's own arguments.

Why States Are Reviewing Exemptions

According to the author, many state governments are struggling, in part because of declines in federal government transfers. As a result, legislators in several states are looking for ways to increase tax collections, and the author writes that one means is to review existing sales and use tax exemptions for possible elimination.

The general expectation is that ending an exemption raises tax collections. The author says that is true for most items, but argues the opposite holds for precious metals bullion, coins and currency.

The Author's Reasoning

The author says coin and bullion dealers generate tax collections in several ways. Many also sell taxable goods such as jewelry, antiques and hobby supplies. States with exemptions have more coin shows per capita and higher attendance, which generates taxable hospitality sales. And in-state workers spend part of their pay on taxable items. He writes that a Michigan Treasury study in the 1990s found 38.5 percent of payrolls were spent on items subject to the state's sales tax.

In the author's account, when an exemption is repealed, in-state dealer sales decline substantially, and many dealers close, lay off staff or move out of state. Coin shows decline as well. He argues that any small gain in sales tax on bullion and coins is more than offset by losses elsewhere.

The author also notes that large buyers have several ways to avoid sales tax: buying metals stored out of state, such as in vaults in Delaware; buying shares of precious metals exchange traded funds; buying shares of large ingots stored at mints such as the Perth Mint in Australia; holding assets out of state in self-directed Individual Retirement Accounts; or buying shares of mining companies.

He cites his former company in Michigan. Before the state exempted bullion and coins in mid-1999, only about 1 percent of its in-state retail bullion and coin sales were transactions of $1,000 or higher. After the exemption, 94 percent of in-state retail bullion and coin sales came from transactions of $5,000 or higher.

Four States That Repealed or Suspended Exemptions

The author cites four states that repealed or suspended such exemptions before 2025.

- Florida repealed its exemption in the 1990s. Coin shows were cancelled or moved out of state, and the Orange County Convention & Visitors Bureau estimated the state's hospitality industry lost $60 million in annual sales. - In Colorado, after repeal, an overwhelming number of legislators voted to restore the exemption. The governor vetoed it twice, and the legislature overrode the second veto. - Ohio repealed its exemption in 2005. Coin World reported that within six months, 100 Ohio dealerships had closed, laid off staff or moved out of state, and every major upcoming coin show had been cancelled. - Louisiana suspended almost 300 sales and use tax exemptions or tax credits for 27 months beginning April 1, 2016. In 2017, a similar exemption was readopted before the suspension ended, one of only four brought back early.

According to the author, all four states reinstated the same or similar exemptions.

Bills at the Time of the Column

The Maryland legislature eliminated its coin and bullion exemption as of July 1, 2025, except for sales at the Baltimore Convention Center. At the time of the column, that narrow exemption might expire on June 30, 2026. Washington later eliminated its similar exemption effective January 1, 2026.

At the time of publication, bills to reinstate the exemptions were pending in both states: House Bill 500 and Senate Bill 309 in Maryland, and House Bill 2115 and Senate Bill 5894 in Washington. Dealer coalitions in both states were building support for passage.

In Nebraska, at the governor's request, LB1244 was pending and would repeal the state's exemption. In New York, last year's failed effort to end the precious metals sales tax exemption has returned as Assembly Bill A8511 and Senate Bill S7875. Dealers in both states were working to stop these bills.

The author writes that the NCBA is helping to coordinate efforts in all of these states.

Source: Numismatic News, "Resisting Rollbacks of Coin/Precious Metals Sales Tax Exemptions" (February 12, 2026).