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)
Conclusion
Please note that this is not a comprehensive review of sales tax laws, only a brief overview of sales tax laws and requirements that may currently affect your transactions with Safe Haven Metal when shipping to the state of Alabama. Hyperlinks will be provided to the state laws, if at any time the text on this page differs from the state’s, you must follow the state’s text.
Sales tax is assessed according to where one is shipping the purchase to.
Roll with the tide, never against it. Alabama tax laws only trigger if the precious metals will ship to the state. So go back home to mama. Then order up a mess of gold and and silver from Safe Haven Metal today.
