Senator Giannares says repealing bullion exemption could recoup an estimated $600 million
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Summary
Senator Giannares introduced S78 75 to end a long-standing sales‑tax exemption for certain precious-metal bullion above a $1,000 threshold, citing a Department of Taxation and Finance estimate that repeal could recoup more than $600 million in foregone sales tax revenue; the committee voted to report the bill to Finance.
Senator Giannares introduced S78 75, a bill to amend New York State’s Tax Law by changing the sales-and-use-tax exemption that applies to certain precious-metal bullion held for investment. Giannares framed the measure as a revenue-restoration step, saying the exemption dates to the late 1980s and that repeal would narrow an exemption that now yields substantial foregone revenue.
“Dating back to the late eighties, New York created an exemption for the sale of gold bars and other precious metals valued over $1,000,” Giannares said. “This year, we would recoup an estimated $600,000,000 plus in foregone sales tax revenue,” she said, attributing the figure in the transcript to the Department of Taxation and Finance. Giannares added a policy argument on equity: “Maybe we shouldn't be giving such a lucrative tax rate to people who can afford to buy gold bars.”
Giannares noted that a number of other states have changed similar exemptions in recent years. The transcript records a motion to move the bill (moved by Senator Dabo) and a voice vote; the committee reported the bill to the Finance Committee for further consideration.
What’s next: S78 75 was reported to the Finance Committee and will be scheduled there for additional review, analysis and possible amendment.
