Senate finance committee advances bill to reinstate sales tax on gold bullion; sponsors cite hundreds of millions in foregone revenue
Loading...
Summary
Sponsors moved to restore sales tax on precious metal bullion, ending a 1989 exemption; fiscal staff estimated roughly $607 million in foregone revenue and members debated impacts on small collectors and cross‑border purchases before advancing the bill to the floor.
Sponsor introduced S7875 to reinstate the state sales tax on purchases of precious metal bullion, arguing that the 1989 exemption has eroded the state tax base and primarily benefits large institutional buyers. The sponsor told members that the exemption has cost the state “hundreds of millions of dollars a year” and cited an agency estimate of about $607,000,000 in foregone revenue if the exemption remains.
Committee members questioned the bill’s effect on small buyers and family heirlooms. One member asked whether a senior citizen who inherited a coin collection would be taxed; the sponsor replied that the purchaser, not the seller, would remit sales tax on a retail transaction. Another member asked about cross‑border purchases and whether buying bullion out of state would avoid tax; the sponsor confirmed the measure would apply prospectively to transactions within New York and that purchases completed out of state remain outside the state sales tax.
Members also noted the Division of Budget and Department of Taxation and Finance concerns that piecemeal exemptions have complicated compliance and eroded the base since the statewide tax’s adoption. After questioning, Senator Rivera moved the bill, Senator Hinchey seconded, and the committee sent S7875 to the Senate floor; the record shows at least one 'nay' vote.
