Investors Want Sales Tax Exemption for Precious MetalsSubmitted by PWA on Wed, 12/05/2012 - 18:46
State Sen. John Schickel, R-Union, pre-filed a bill for the next session to exempt bullion and legal tender coins from Kentucky’s 6 percent sales tax. Investors in bullion and legal tender precious metal coins must, in the state, pay a sales tax upfront and a capital gains tax when they sell, representing a war on this clique of investors. Proponents of the bill argue that the state should treat investment options in precious metals like stocks and bonds, where sales taxes don’t apply, just like 33 other states. The move would take off the basic barricade of taxes placed on precious metals. The real question: Do we help the state first or the citizenry? According to the original intentions of the political american system, the interests of the citizenry herein win-out (in the form of the ability of lessening their tax burden) over the state.
The economic depression, to be sure, will not warm regulators up to the idea of passing tax exemptions. That is, after all, essentially what the fiscal cliff is all about. The bill proposed in Kentucky would only exempt money constituted of precious metals minted by the United States or foreign governments, and so thus not jewelry or numismatics and perhaps semi-numismatics.