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Supporters urge SB 309 to restore sales-tax exemption for small bullion purchases; committee questions fiscal note
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Summary
A staffer for Sen. Jennings said SB 309 would make permanent Maryland's sales-tax exemption for gold and silver purchased for investment and extend it under $1,000; committee members questioned a $2 million fiscal note and cited dealer reports of sharp sales declines.
Senate Bill 309, presented to the Ways and Means Committee on behalf of Senator Jennings, seeks to restore and make permanent a Maryland sales-tax exemption for gold and silver purchased primarily for investment or savings and extend the exemption to purchases under $1,000.
The staffer presenting the bill said the measure "restores and makes permanent Maryland sales tax exemption on gold and silver purchased primarily for the investment or savings" and that 45 other states already exempt precious metals. Lawmakers pressed the sponsor's representative on a $2 million fiscal note and asked about data collection from local bullion dealers.
The representative cited examples from local dealers showing steep declines in bullion-related foot traffic and sales after prior changes in tax treatment, with one dealer reporting a fall from roughly $1.5 million to $312,000 in a later period. Committee members asked whether lost bullion sales also reduced sales of other taxable items sold at the same stores, such as pawn or retail goods.
Members noted that some purchases above $1,000 are already exempt and questioned whether the fiscal estimate assumed current purchasing patterns. The sponsor's representative said the budget and taxation committee had discussed the note and offered to follow up with more data.
The committee did not take a vote on SB 309 at the hearing.
Testimony: Staff member for Senator Jennings (presenting SB 309).
