California Coins and Bullion Sales and Use Tax Regulation Changed

The state of California has increased its exemption threshold for sales and use tax on bulk sales of monetized bullion, nonmonetized gold or silver bullion, and numismatic coins, effective January 1, 2023. With higher inflation rates in 2022, regulations stipulated that the threshold adjust from $1,500 to $2,000.

The California Department of Tax and Fee Administration warned of the upcoming increase last December in Tax Information Bulletin, Publication 388, December 2022, which stated, “Starting January 1, 2023, a bulk sale occurs if the total market value of the monetized bullion, nonmonetized gold or silver bullion, and numismatic coins sold in a single transaction is $2,000 or more.”

The bulletin further explained, “Each year, we are required to calculate what the operative threshold would be if adjusted for annual inflation. When the adjusted amount for inflation equals or exceeds the operative threshold by $500, the operative threshold increases to the amount as adjusted for inflation.” While this change may be a surprise to many California coin and precious-metals business owners, this is an annual calculation that happens automatically under the law.

According to the bulletin, “the regulation is in the process of being updated to reflect the new threshold.” However, as of May 2023, the regulation still states the exemption threshold is $1,500. For more information, call the CDTFA Customer Service Center at 1-800-400-7115.

For more information, select the links below.

Sales And Use Tax Regulation 1599, Coins and Bullion

BTLG Sales and Use Tax Law, Chapter 4, Section 6355

CDTFA Tax Information Bulletin, Publication 388, December 2022

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