Alabama Precious Metal Sales Taxes

 

How Does Alabama Tax Precious Metals?

The state of Alabama requires precious metal dealers like Hero Bullion to collect sales taxes on certain precious metal products.

At this time, Hero Bullion does not collect sales taxes on platinum, silver, gold, or palladium coins, rounds, and bars. These products were once sales tax-mandatory, but Alabama changed their taxation laws in 2022 to give more leniency to investors who want to collect precious metals products. As of the time of writing this guide, Alabama sales taxes apply to certain items Hero Bullion sales, but not to the pure bullion products listed above. 

Although Alabama laws have provided a greater degree of taxation freedom to precious metal collectors, the following defined items are still taxable when shipped to the state of Alabama:

Taxable Product	Definition
Numismatic Bullion	This refers to products that offer additional value in addition to their physical metal content. Typically, this is due to rarity, exceptionally fine condition, or other factors that influence the total value of a precious metal item.
Foreign and Non-Circulation Coins	Coins that are minted from a foreign sovereign government and coins that carry no exchange/face value in the United States are subject to sales tax in the state of Alabama.
Accessories	Items used to store, maintain, or display precious metals are taxed in Alabama. This product category includes coin flips, holders, cleaners, etc.
Processed Bullion	If a bullion product has been processed by parties aside from their original mint in order to add additional value, they’re considered processed and are subject to Alabama’s sales tax laws. Colored coins, jewelry, and statues typically fall into this category.

Alabama Simplified Sellers Use Tax

The state of Alabama has implemented a “Simplified Sellers Use Tax.” This 8% tax is applied to all taxable products in the state. 

Alabama requires Hero Bullion to inform customers of the following:

• Hero Bullion has collected an 8% Simplified Sellers Use Tax on products that are taxable in and shipped to the state of Alabama. We will provide these taxes to the Alabama Department of Revenue on behalf of our customers. 

How Does Hero Bullion Calculate Sales Taxes in Alabama? 

Whenever you buy an item from Hero Bullion and provide us with a shipping address in the state of Alabama, we automatically determine relevant sales taxes and add it to your total at checkout. Hero Bullion’s goal is to make buying gold, silver, and platinum as easy as possible for investors of all experience levels, so we’re happy to offer a transparent tax model.

Never hesitate to contact us immediately with any questions or concerns you have about the taxes added to your Alabama bullion order.

Alabama’s Department of Revenue can also help to hear complaints or answer questions you might have about bullion sales tax in Alabama.