Colorado Precious Metal Sales Taxes

 

How Does Colorado Tax Precious Metals?

Hero Bullion customers with shipping addresses in the state of Colorado should be aware of the taxes that apply to certain items purchased and shipped to jurisdictions within the state. Colorado’s state legislators have decided that bullion distributors must collect state taxes on four types of products. If you purchase copper bullion products, numismatic coins, accessories, or processed bullion products, expect to pay Colorado-specific sales taxes. 

Colorado legislation dictates that the following definitions apply to taxable bullion products:

Taxable Product	Definition
Copper Products	Products composed primarily of copper bullion are subject to sales tax collection in Arkansas.
Numismatic/Bullion Coins	In Colorado, numismatic coins are taxable if they have never been used as currency in any country. Numismatic coins are bullion coins that are valued for more than their precious metal content.
Accessories	Accessories are non-bullion products that are used to maintain, store, or display precious metal items, such as coin flips, holders, cleaners, or displays.
Processed Bullion	Whenever a pure bullion product is altered by a third party in order to add value to its basic precious metal content, it is legally considered processed bullion. These products are also taxable in Colorado.

How Does Hero Bullion Calculate Sales Taxes in Colorado? 

Bullion consumers should remember that both state and federal taxes are collected on bullion products. The difference is that state taxes are collected at the sale of the product to the consumer, while federal taxes are owed on the gains from the consumer’s sale of the bullion item. 

If you have questions or concerns about Colorado’s bullion tax regulations, please contact the Colorado Department of Revenue. Questions about how Hero Bullion calculates your tax burden on a specific sale can be directed to our support team.