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Committee hears bill to exempt coins and currency from sales tax
Summary
House File 881 would expand Minnesota's existing exemption for bullion to include coins and collectible currency; proponents said the fiscal impact is modest and supporters asked the committee to lay the bill over for possible inclusion in the omnibus tax bill.
Representative Bob Olson introduced House File 881, which would expand Minnesota's sales tax exemption for bullion to also cover collectible coins and currency. Olson said 44 other states exempt bullion or collectible currency and that the change would make small-denomination collectible coins affordable to more Minnesotans.
JP (J. P.) Cortez, testifying remotely, said the distinction between bullion and coins is artificial and noted other states recently removed sales tax on gold and silver purchases. "It frankly doesn't make sense that Minnesota is choosing to delineate between bullion and coins like this," Cortez told the committee, arguing the change would reduce double taxation (sales tax at purchase and capital gains tax at sale).
Members raised concerns about revenue erosion. Chair Gomez warned that incremental sales tax exemptions reduce the tax base over time. Cortez and supporters cited small fiscal impacts observed in other states and a Tennessee example where a similar exemption produced a minimal fiscal effect. Olson said the bill would help small in-state coin dealers and make low-cost collectible pieces accessible to lower-income investors.
Representative Olson moved to lay House File 881 over for possible inclusion in the omnibus tax bill; the motion was renewed and carried as laid over. No roll-call vote was recorded during the hearing.
Speakers credited below are those who testified or spoke on the bill during the committee hearing.
