Requires that sales tax exempt precious metal bullion shall be purchased by a bank, a foreign government, the U.N. or the state, federal or local government.
STATE OF NEW YORK
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7875
2025-2026 Regular Sessions
IN SENATE
May 13, 2025
___________
Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
printed to be committed to the Committee on Budget and Revenue
AN ACT to amend the tax law, in relation to the sales and use tax
exemption for certain transactions in precious metal bullion held for
investment purposes
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph 27 of subdivision (a) of section 1115 of the tax
2 law, as amended by chapter 147 of the laws of 1995, is amended to read
3 as follows:
4 (27) Precious metal bullion sold for investment, provided that (i) the
5 retailer, if so required, is registered pursuant to section three
6 hundred fifty-nine-e of the general business law, and (ii) the precious
7 metal bullion is being sold or bought by a central bank, a foreign
8 government, the United Nations, the United States of America or any of
9 the several states or territories thereof, or any of their instrumental-
10 ities, agencies or political subdivisions (or any public corporation,
11 including a public corporation created pursuant to an interstate
12 compact, international treaty, or international agreement), and (iii)
13 the receipt or consideration given or contracted to be given for such
14 bullion depends only on the value of the metal content of such bullion.
15 "Precious metal bullion" means bars, ingots or coins of gold, silver,
16 platinum, palladium, rhodium, ruthenium or iridium, but shall not
17 include bars, ingots or coins which have been manufactured, processed,
18 assembled, fabricated or used for an industrial, professional, esthetic
19 or artistic purpose. Precious metal bullion shall be deemed to be sold
20 for investment when it is sold for more than one thousand dollars and
21 the purchaser or user or agent of either of them holds it in the same
22 form as when it was purchased and does not manufacture, process, assem-
23 ble or fabricate such bullion for its own use. For purposes of this
24 paragraph, the receipt or consideration given or contracted to be given
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10975-02-5
S. 7875 2
1 shall be deemed to depend only on the value of the metal content if, at
2 the time of sale or purchase at retail, such receipt or consideration
3 does not exceed (i) one hundred forty percent, with respect to silver
4 coins, or (ii) one hundred twenty percent, with respect to gold coins
5 weighing one-quarter of an ounce or less, or (iii) one hundred fifteen
6 percent, with respect to other coins, of the greater of (A) the daily
7 closing bullion cash price of such metal in the open market or (B) the
8 coins' face value at prevailing rates of exchange, or (iv), with respect
9 to bars and ingots, one hundred fifteen percent of such bullion cash
10 price of such metal. Where there is no such closing price for such
11 metal, the average of the bid and asked cash prices shall be substituted
12 for such closing price.
13 § 2. This act shall take effect on the first day of the quarterly
14 sales tax period as set forth in subdivision (b) of section 1136 of the
15 tax law next succeeding the thirtieth day after it shall have become a
16 law; provided, however, that the commissioner of taxation and finance
17 may take any action with respect to the adoption, amendment, suspension
18 or repeal of any rule or regulation relating to this act, and may estab-
19 lish any procedure necessary for the timely implementation of this act
20 on or before the date on which it shall have become a law.
