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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

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Current Bill Status - On Floor Calendar

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2025-S7875 (ACTIVE) - Details

See Assembly Version of this Bill:
A8511
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

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

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Samuel_Horwitz
6 months ago

This feels akin to charging sales tax on currency exchange. I understand the existing limits around ensuring only fungible, investment-grade bullion is exempt, but to tax something similar to currency exchange or the purchase of securities seems conceptually indefensible within the framework of how sales tax is currently applied.

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