California Precious Metal Sales Taxes
At a Glance: Taxable Precious Metal Products in California
California’s tax laws are complex. In the state of California, the following categories of precious metal products are taxable:
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- Non-Monetized Copper, Platinum, and Palladium.
- Most Transactions Under $2,000.
- Accessories.
- Processed Products.
How Does California Tax Precious Metals?
California legal code is notoriously complex. This is one reason why the California BAR Exam, which all prospective lawyers must take in order to practice law in the state, boasts one of the lowest pass-rates in the country. Bullion tax laws are no exception to the rule of complexity in California’s lawbook.
Federal taxes must be paid on all bullion sales. But most of these taxes are only due once you sell your bullion products. State taxes are a bit different, as they are generally collected up-front when you purchase the bullion from a licensed retailer. Hero Bullion takes the guesswork out of the equation by calculating the relevant state taxes for you when you checkout on our website.
If you’re purchasing bullion from a California address, you should know that six categories of products are taxable in the state: non-monetized bullion products, monetized bullion products, numismatic bullion coins, transactions under $2,000, accessories, and processed items.
Below, we’ll discuss the definitions of these products as provided by the California legislature:
| Taxable Product | Definition |
|---|---|
| Non-Monetized Bullion Products | In California, products made from copper, platinum, or palladium with a value primarily dependent on its precious metal composition are considered taxable. |
| Monetized Bullion Products | Coins, bars, or rounds that have been legally recognized as a medium of exchange by any government are taxable in California. |
| Numismatic Coins | Numismatic coins are coins that are valued for more than just their precious metal content (i.e. melt value). Numismatic bullion coins are considered taxable in California. |
| Transactions Below $2,000 | Any single transaction valued at less than $2,000 USD is taxed in California. |
| Processed Bullion | Precious metals taken and altered by third parties to add value are considered processed bullion items. Colorized coins are often placed under this category. |
| Accessories | Accessories are taxed by most U.S. states. Items that are used to maintain or store bullion products, such as coin holders, cleaners, or flips, are accessories taxable under California law. |
How Does Hero Bullion Calculate Sales Taxes in California?
As mentioned above, Hero Bullion automatically determines your owed sales tax based on the state you provide at checkout. For specific questions about California law regarding bullion taxes, contact the California Tax Service Center.