NY State Senate Bill 2025-S7875

Senate Bill S7875

2025-2026 Legislative Session

Relates to the sales and use tax exemption for certain transactions in precious metal bullion held for investment purposes

download bill text pdf

Current Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 28, 2025	reported and committed to finance
May 13, 2025	referred to budget and revenue

Votes

- May 28, 2025 - Budget And Revenue Committee Vote
  S7875
  
  6
  
  Aye
  
  1
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Budget And Revenue Committee Vote: May 28, 2025
      
      aye (6)
      
      Addabbo Jr.
      
      Comrie
      
      Gounardes
      
      Krueger
      
      Ramos
      
      Weber
      
      nay (1)
      
      Rhoads

2025-S7875 (ACTIVE) - Details

See Assembly Version of this Bill:: A8511
Current Committee:: Senate Finance
Law Section:: Tax Law
Laws Affected:: Amd §1115, Tax L

2025-S7875 (ACTIVE) - Summary

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.

2025-S7875 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7875

SPONSOR: GOUNARDES
 
TITLE OF BILL:

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

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would end the tax-free sale of precious metal bullion sold for
investment for over $1,000

 
SUMMARY OF PROVISIONS:

Section one of the bill amends paragraph 27 of subdivision (a) of
section 1115 to eliminate the exemption of sales tax to precious metal
bullion sold for investment except for sales that occur between central
banks and other governmental institutions

Section two of the bill provides for the effective date

 
JUSTIFICATION:

New York currently exempts precious metal bullion and coins sold for
more than $1,000 from sales tax, defining "precious metal bullion" in
Tax Law § 1115(a)(27) to mean bars, ingots, or coins of gold, silver,
platinum, palladium, rhodium, ruthenium, or iridium. While some inves-
tors purchase bullion coins as gifts or collectible items, others choose
to invest in them for their perceived value as a means of maintaining
purchasing power against inflation.

While taxpayers do have to remit a capital gains tax at a rate of 28% on
these collectibles when they go to sell them, this same sales tax
exemption is not afforded to other valuable assets that are held for
investment.

In 2025, alone, two large mull-nation banks purchased around $4 billion
in gold bullion for investment as a hedge against losses on short posi-
tions.

This sales tax exemption for high-value purchases of precious metal
bullion costs the state a stunning $601 million in lost revenue.

 
PRIOR LEGISLATIVE HISTORY:

None

 
FISCAL IMPLICATIONS:

This bill could provide the state an additional $601 million in revenue

 
EFFECTIVE DATE:
This act shall take effect on the first day of the quarterly sales tax
period as set forth in subdivision (b) of section 1136 of the tax law
next succeeding the thirtieth day after it shall have become a law.

2025-S7875 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7875
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               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:
 
   Section  1. Paragraph 27 of subdivision (a) of section 1115 of the tax
 law, as amended by chapter 147 of the laws of 1995, is amended  to  read
 as  follows:
   (27) Precious metal bullion sold for investment, provided that (i) the
 retailer,  if  so  required,  is  registered  pursuant  to section three
 hundred fifty-nine-e of the general business law, and (ii) THE  PRECIOUS
 METAL  BULLION  IS  BEING  SOLD  OR  BOUGHT BY A CENTRAL BANK, A FOREIGN
 GOVERNMENT, THE UNITED NATIONS, THE UNITED STATES OF AMERICA OR  ANY  OF
 THE SEVERAL STATES OR TERRITORIES THEREOF, OR ANY OF THEIR INSTRUMENTAL-
 ITIES,  AGENCIES  OR  POLITICAL SUBDIVISIONS (OR ANY PUBLIC CORPORATION,
 INCLUDING  A  PUBLIC  CORPORATION  CREATED  PURSUANT  TO  AN  INTERSTATE
 COMPACT,  INTERNATIONAL  TREATY,  OR INTERNATIONAL AGREEMENT), AND (III)
 the receipt or consideration given or contracted to be  given  for  such
 bullion  depends only on the value of the metal content of such bullion.
 "Precious metal bullion" means bars, ingots or coins  of  gold,  silver,
 platinum,  palladium,  rhodium,  ruthenium  or  iridium,  but  shall not
 include bars, ingots or coins which have been  manufactured,  processed,
 assembled,  fabricated or used for an industrial, professional, esthetic
 or artistic purpose. Precious metal bullion shall be deemed to  be  sold
 for  investment  when  it is sold for more than one thousand dollars and
 the purchaser or user or agent of either of them holds it  in  the  same
 form  as when it was purchased and does not manufacture, process, assem-
 ble or fabricate such bullion for its own  use.  For  purposes  of  this
 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
 
 shall be deemed to depend only on the value of the metal content if,  at
 the  time  of  sale or purchase at retail, such receipt or consideration
 does not exceed (i) one hundred forty percent, with  respect  to  silver
 coins,  or  (ii)  one hundred twenty percent, with respect to gold coins
 weighing one-quarter of an ounce or less, or (iii) one  hundred  fifteen
 percent,  with  respect  to other coins, of the greater of (A) the daily
 closing bullion cash price of such metal in the open market or  (B)  the
 coins' face value at prevailing rates of exchange, or (iv), with respect
 to  bars  and  ingots,  one hundred fifteen percent of such bullion cash
 price of such metal. Where there is  no  such  closing  price  for  such
 metal, the average of the bid and asked cash prices shall be substituted
 for such closing price.
   §  2.  This  act  shall  take effect on the first day of the quarterly
 sales tax period as set forth in subdivision (b) of section 1136 of  the
 tax  law  next succeeding the thirtieth day after it shall have become a
 law; provided, however, that the commissioner of  taxation  and  finance
 may  take any action with respect to the adoption, amendment, suspension
 or repeal of any rule or regulation relating to this act, and may estab-
 lish  any procedure necessary for the timely implementation of  this act
 on or before the date on which it shall have become a law.

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