Colorado Precious Metals Tax
What Precious Metals Are Taxed in Colorado?
In Colorado, all precious metals in any form are exempted from state sales tax, except as otherwise stated below.
Definitions Specific to Precious Metal Products in Colorado
Colorado defines “coins” in the precious metals context to mean any monetized bullion or other form of money manufactured from gold, silver, platinum, palladium, or other like metals, when ever made and designated by its state law, the laws of the United States or any foreign nation as a medium of exchange, i.e., legal tender. Colo. Rev. Stat. § 39-26-102 (2.6)
Bullion is defined as consisting of any precious metal, including without limitation, gold, silver, platinum, palladium, that has been refined and produced in a form so that its value is dependent on its content and not its form or other special unique characteristics. Colo. Rev. Stat. § 39-26-102 (6.6)
Bullion qualifies for Colorado sales tax exemption, if:
All sales, storage, use or consumption of precious metal bullion or coins as defined in the above statutes are exempt from sales tax in Colorado. Colo. Rev. Stat. § 39-26-706(4) (a), (b).
Which by process of elimination means that numismatics, coins whose value is dependent on unique characteristics and not on its precious metals content will be subject to state sales tax in Colorado.
Unlawful Bullion Activities
A good thing to keep in mind when out prospecting, Colorado declares it unlawful, whether acting on your own behalf or for another and as either buyer or seller, as to rare minerals or precious metals, to make such a transaction for over $10 unless the vendor signs using a true name and provides specifics of the transaction. But this only applies to “ores, concentrates, or amalgams” and “gold dust, gold or silver bullion, nuggets, or specimens of a value of ten dollars or more”, Colo. Rev. Stat. § 34-54-102.
Yet, apparently not a popular crime to allege because since its enactment in 1963, not a single case has mentioned it. And in 2022 the Colorado Legislature reduced it to a class 2 misdemeanor. Colo. Rev. Stat. § 34-54-106.
Disclaimer
Disclaimer: Sales tax laws and rates regarding precious metals coins and bars in Colorado 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.
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.
