Investors in Louisiana Can Now Buy Gold and Silver Without Paying Sales Tax

Good news for investors in Louisiana. They will no longer have to pay sales tax when they buy gold, silver, and platinum.
Last week, Louisiana Gov. John Bel Edwards signed a bill into law that exempts the sale and purchase of gold and silver and other precious metals from state sales and use taxes. The new law will encourage their use and takes the first step toward breaking the Federal Reserve’s monopoly on money.
Rep. Stephen Dwight (R) and Rep. Mark Abraham (R) sponsored HB396 earlier this spring. The legislation exempts the sale of platinum, gold, or silver bullion, ingots, or coins that are valued only on their precious metal content from the state sales tax. It also exempts certain numismatic (collectable) coins.
The House initially passed HB396 95-0 on May 24. The Senate followed up on June 2 and approved the measure by a vote of 30-2 with some technical amendments. The House then concurred with the Senate amendments by a vote of 103-0. With Gov. John Bel Edwards’ signature, the new law went into immediate effect on June 22.
IN PRACTICE
Imagine if you asked a grocery clerk to break a $5 bill and he charged you a 35 cent tax. Silly, right? After all, you were only exchanging one form of money for another. But that’s essentially what Louisiana’s sales tax on gold and silver did. By removing the sales tax on the exchange of gold and silver, Louisiana will now treat specie as money instead of a commodity. This represents a small step toward reestablishing gold and silver as legal tender and breaking down the Fed’s monopoly on money.

This post was published at Schiffgold on JUNE 27, 2017.