New Jersey Officially Eliminates Precious Metals Sales Taxes

 

Breaking News: New Jersey Exempts Precious Metals From State Sales Taxes

(Bullion News Network) – Senate Republicans in New Jersey confirmed just hours ago that Governor Phil Murphy signed into law S-721, a bill that will provide a sales tax exemption for precious metal investments. The new law provides a state sales tax exemption for “investment metal bullion,” which is defined as: 

Any elementary precious metal that has been put through a process of smelting or refining, including, but not limited to, gold, silver, platinum, and palladium, and that is in such state or condition that its value depends upon its content and not its form.

Like similar laws in other states, the tax exemption allowed by S-721 will not apply to certain precious metal products, including jewelry, artwork, and commemorative medallions. Precious metals that have been processed or assembled for “industrial, professional, aesthetic, or artistic uses” are also still subject to sales taxation, according to the law. 

S-721 passed unanimously in both the New Jersey Assembly and Senate. After securing approval from Governor Murphy, Republicans in the New Jersey Senate praised the bill. According to a press release on the New Jersey Senate Republicans website, the law both “align[s] New Jersey with the laws of other states,” but also treats precious metal purchases like any other type of investment, “such as stocks.” 

The successful bill is not the legislature’s first attempt at reforming New Jersey’s sales tax regulations regarding precious metals. Earlier this year, Governor Murphy exercised a controversial “pocket veto” in order to block an identical proposal, New Jersey Assembly Bill A5294. The decision prompted a groundswell of outcry from investors, lobbyists, and precious metal dealers. 

Here’s What New Jersey’s New Bullion Tax Law Means For Investors 

Like similar laws passed by other states, the exemption applies exclusively to unaltered bullion products valued primarily for their precious metal content. Investment coins are also included in the exemption, so long as they meet a minimum market value of $1,000. 

Advocates praised the move, which makes New Jersey the 45th state to eliminate taxes for gold, silver, and other precious metals. Similar laws were introduced in Georgia, Kentucky, Wisconsin, and Kansas earlier in 2024. 

After vetoing this bill last year, NJ Gov. Murphy has signed S721/A2812 into law, ending the sales tax on purchases of gold and silver. NJ is the 45th state to end this tax. KY, HI, ME, NM, and VT remain. NJ is the seventh state to pass pro- sound money legislation in 2024. https://t.co/CL50LbhWoG

— Jp Cortez (@JpCortez27) September 12, 2024

S-721 officially became law in New Jersey today and will take effect immediately. The new sales tax exemption for bullion investment products will begin to apply to purchases made on or after January 1, 2025.