What Precious Metals Are Taxed in Alabama?
The ones that we don’t sell! All precious metals are tax exempt in Alabama unless they are unrefined; under 80% purity; or considered jewelry or works of art.
As well as certain numismatic products where the value is derived more from the unique aspects of that specific object as opposed to its metal value that fluctuates with the market conditions.
Definitions Specific to Precious Metal Products in Alabama
Alabama Code § 40-23-4 (a)(52)(b):
- Bullion. Gold, silver, platinum, palladium, or a combination of each precious metal, that has gone through a refining process and for which the item’s value depends on its mass and purity, and not on its form, numismatic value, or other value. The term includes bullion in the form of bars, ingots, rounds, or coins that meet the requirements set forth above.
- Mass. An item’s mass is its weight in precious metal.
- Numismatic Value. An external value above and beyond the base value of the underlying precious metal, due to the item’s rarity, condition, age, or other external factor.
- Purity. An item’s purity is the proportion of precious metal contained within.
Bullion qualifies for Alabama sales tax exemption, if:
Same law as above but (c).
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- Gold, silver, platinum, and palladium.
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- Must be refined.
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- Must contain at least 80 percent gold, silver, platinum, or palladium or some combination of these metals.
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- The sales price of the item must fluctuate with and depend on the market price of the underlying precious metal, and not on the item’s rarity, condition, age, or other external factor
Southern Hospitality in Alabama tax reporting
In plain English, you do not have to file any additional report relating to this exemption.
Ala. Code § 40-9-61 (“(c) Notwithstanding any provision of law to the contrary, a person or company receiving an exemption from the payment of sales or use tax for the gross proceeds of the sales of gold, silver, platinum, and palladium bullion, and money under Section 40-23-4 shall not be required to file a report relating to that exemption by the Department of Revenue under this section.”)
Warning, if you are not buying from Safe Haven Metal
Those that purchase somewhere else, take heed. Precious metals that are not described above are subject to a state sales tax rate of 4%, Ala. Code § 40-23-2(1)
Disclaimer
Disclaimer: Sales tax laws and rates regarding precious metals coins and bars in Alabama may change without notice. This page provides general guidance only. Please consult your local tax authority or a qualified tax professional, and check official state resources for the most current and accurate information before making any precious metals transactions.
If you want to buy or sell precious metal coins and bars in Alabama, your transactions are generally tax-free. Always verify your specific products and stay updated with the Alabama’s Division of Tax Revenue.
Sales tax is assessed according to where one is shipping the purchase to.
Safe Haven Metal utilizes an advanced sales tax computation system to determine the applicable sales tax on precious metals transactions based on the purchaser’s ZIP code. This system is designed to ensure that the most accurate pricing and corresponding tax calculations are applied to each order.
However, Safe Haven Metal may not have an established economic nexus in every state or jurisdiction. In instances where Safe Haven Metal is not obligated to collect sales tax, and such tax is nonetheless applicable under state or local law, the purchaser is solely responsible for reporting, remitting, and paying any such taxes directly to the appropriate taxing authority.
Safe Haven Metal disclaims any liability for a purchaser’s failure to properly report or remit taxes that may be due in connection with their purchase.
